The insurer is obliged to notify the cancellation of the insurance in advance. Depending on the reason, the time to do so may be shorter, knowing these details and using them to your advantage is what you will find …

In this post, I am going to explain what you can do if the insurer has canceled your car insurance and what reasons it has had to do so. These same arguments, by analogy, are valid for other types of insurance.

A few days ago a friend told me that he had received two traffic fines, both imposed using one of the new DGT radars. One did not surprise him at all, he had gone a few kilometers over the speed limit. The other yes, they sanctioned him for lacking mandatory circulation insurance. The insurance company had canceled it at maturity and they had not told him.

Insurers look for a specific client profile and periodically check their insurance portfolio, debugging the contracted risks. So discovering that your car or house insurance has been canceled is a situation that occurs more and more frequently.

So that you have no doubts, in this post we are going to answer three specific arguments:

  • The insurer can cancel the insurance contract whenever and however it wants.
  • What are the reasons why you cancel the insurance?
  • What can the consumer do in this situation?

Without further ado, the good starts here.

The insurer has canceled my car insurance without notifying me beforehand. Is it legal?

In the insurance contract, like other contracts, a series of conditions are established that are binding on the parties who sign it. In this case, the insurer and the insured are obliged to inform the other party of those circumstances that occur after its formalization and that may modify the terms thereof. Also, those related to the duration of the insurance.

But in addition, this information must meet a formal requirement, you cannot do it in any way, you must communicate it in writing. It will expressly contain the decision of the insurer to oppose the extension of the contract, clearly indicating the date on which the termination or cancellation occurs, having to reliably certify receipt by the insured. If necessary, the insurance company will be the one obliged to prove that it communicated the cancellation in a timely manner.

Can the insurer terminate the insurance contract at any time?

There is another requirement that the insurer must meet when it decides that it is not interesting as a customer or does not want to continue insuring that specific risk. This requirement is temporary, the communication must be made within the legally established deadlines. Failure to comply with these deadlines renders the communication of opposition to the extension of the insurance ineffective.

But the insurer, not only, must comply with the formal requirement in the communication and the time to do it, but the Insurance Contract Law establishes the conditions under which you can cancel the insurance of the car, home, or your pet. The reasons are diverse, so we are going to see what are the most frequent causes.

What are the most frequent causes of cancellation of the policy by the company?

In the same way that the insured when he wants to cancel the contract, he does not have to explain to the company why he does it, it does not have to do it either. This is provided for in article 22 of the Insurance Contract Law.

When this article is invoked, you should know that the insurer must notify the cancellation insurance at least two months before the renewal date.

A period of two months is also established for the insurer to notify the policyholder of any modification in the contract.

But there are other deadlines that you are interested in knowing.

Non-payment of the premium, the most frequent cause for car insurance to be canceled.

Most of the time, due to ignorance, carelessness, or misinformation, we think that returning the receipt, when they pass it on to us, is enough to cancel the insurance. And it is not like that, because from that moment on, you leave the decision to the company.

The law says that in case of non-payment of any of the successive premiums, the insurance coverage is suspended one month after the expiration date. And the insurer has six months to claim the insurance payment, if it does not, the contract is automatically terminated.

Some insurers report the suspension of insurance while claiming payment. Others after 30 days cancel the insurance without further ado, leaving you without options to start the contract again, paying the corresponding premium.

The insured risk does not correspond to reality.

Sometimes it happens that, from when we take out the insurance until the event whose risk we insure occurs, a certain time elapses and the characteristics have changed. In these cases, when the insurer knows it, it can terminate the contract if the risk no longer interests it. To do this, you must notify the policyholder of your decision within a month of becoming aware of the increased risk.

However, this is not always the case, in many cases, it is the policyholder who informs the insurer of a change in the circumstances of the insured risk. In this case, the company has two months to propose new insurance conditions. The policyholder has fifteen days to accept or reject it. If it is rejected or there is no response, the insurer may terminate the contract after warning the policyholder, giving him fifteen days to respond, after which and within the following eight days it will communicate the termination of the contract.

When any of these reasons concur with the termination of the contract by the insurer, the policyholder is obliged to return the part of the premium not consumed.

Trying to deceive the company does not go unnoticed.

Insurance is an adhesion contract and before signing it you will have to answer the questions that the insurer submits to you. As a policyholder, you have the duty to inform about the circumstances that will influence the assessment of the risk you intend to insure. These data form the basis for determining the price you will have to pay for the insurance.

Well, the insurer may terminate the contract, through a statement addressed to the policyholder, within one month of becoming aware of the inaccuracy or reservations in the information. In this case, contrary to what happens in the previous point, the unconsumed premium will remain in favor of the insurer, unless it has acted with intent or gross negligence.

But there is also a consequence that can be detrimental, and that is the loss of compensation. If the loss occurs and the insurer has not notified the policyholder of the termination of the contract, the compensation will be reduced in the proportion between the agreed premium and the one that would have corresponded if the true entity of the risk had been known.

Not only does deception occur when subscribing to the insurance, so that the insurer assumes the risk or comes out cheaper, but also when falsifying the occurrence of a claim or its consequences. In this case, in addition to terminating your contract, the insurer may find you with a criminal complaint, with serious consequences for you.

The frequency of claims, a reason to cancel the contract.

As I have already told you on more than one occasion, insurance companies are not NGOs, they are companies whose objectives include making money.

The companies must meet a series of solvency requirements that allow them to meet the obligations of the underwritten risks. To avoid deviations, they closely mark the global and individual results of each insurance. Therefore, it is not surprising that they periodically clean up and terminate those deficit insurance contracts. It depends on each insurer, but having a couple of claims during the annuity can be a reason for cancellation. Some only assess the cost of claims and others remix both data.

In any case, if the insurer decides to cancel the contract, it must notify it at least two months before expiration, except in the case of any of the circumstances analyzed in the previous points.

These are some of the facts that motivate you to find that the insurer has canceled the contract, but there are others, such as the sale of the car or the home.


We have seen how you can find that the insurer has canceled the insurance, by unilateral decision or forced by your action as the policyholder.

If the cancellation is unilateral, for it to be valid and effective, it must be communicated in writing, reliably, and expressly indicating the reasons for the decision. Depending on these reasons, the minimum period to communicate the cancellation will be:

⇒ Two months: When the decision is not to extend the contract beyond the expiration date.

⇒ One month: If the termination of the contract is prior to expiration. In this case, the normal thing is that the insurer is obliged to return the unconsumed premium.

As you can see, the company can also cancel the contract whenever it wants, but like you, subject to certain rules. From now on, you know how you can act to your benefit if certain conditions are met.

Have you ever run out of insurance and didn’t know it?

Now it’s up to you, leave us your answer in the comments, we are happy to read your comment.


Please enter your comment!
Please enter your name here