It has happened to you to tell the insurance company that you do not want to renew your car or house policy. Well, here you have all the information you need if you want to cancel the insurance after the deadline.

Have you ever crossed a suspension bridge? If you have done it, you will know that doing it without protection and help is very risky, as well as canceling the insurance after the deadline.

And if you are nowhere reading this article, I’m afraid the objective is obvious, you want to cancel the insurance after the deadline. And you want to do it now.

The blog post that receives the most visits is 3 Tricks to cancel the insurance and not be claimed … Double the next in the ranking of the most read. And the truth is that it does not surprise me, especially since we do not take the insurance contract seriously until we suffer a mishap. There is also a lot of misinformation and certain myths, some related to the loss of insurance after the deadline.

  • They make you an offer over the phone, you accept and believe that the new company will take care of canceling the old insurance
  • You have seen a car insurance bargain on the Internet, you have hired it and now you find that the two receipts have been charged to you. 
  • When you receive the charge from the bank for the new policy, you return the receipt of the old insurance. 

We have quickly associated that the insurance contract works with portability, as it happens when changing the provider of the telephone, electricity, or gas. We make the mistake of thinking that it will be the new company that will cancel the policy.

We buy the super-insurance-bargain online and forget to cancel the one we have in force or we act as the mediator on duty tells us and …


We received the claim from the insurer inviting us to pay the insurance under threat of claiming it in court.

With this article what I intend is to give you outlets for when the “nothing happens” or “the company will not claim you”, is not fulfilled.

The duration of the insurance contract

Before I spoke of the usual providers in a home. The telephone, electricity, or gas contract does not have a fixed duration, the financial or insurance contracts do.

The duration of the contract will be determined in the policy, which may not set a term of more than ten years. However, it may be established that it be extended one or more times for a period not exceeding one year each time.

According to this, a minimum duration of the insurance is not legally established, being able to subscribe with a duration of one day or up to ten years.

When we contract temporary insurance (with a specific duration), for example, for fifteen days, a month, or six months, when the expiration date arrives, the contract is terminated and the insurer is released from its obligations.

On the contrary, when the insurance is extendable for one year (the most frequent duration), if the expiration date has arrived, neither party has notified the other of the termination of the contract, it is automatically extended for a new annuity.

In the case of life insurance, the duration of the contract can exceed ten years. It generally lasts until the insured reaches 65 or 70 years of age. Some insurers offer life policies with the possibility of increasing this time.

What do I have to do when I don’t want to extend the insurance?

Both the policyholder and the insurer can oppose the extension of the contract. In the case of the policyholder, they must notify the insurer in writing, at least one month in advance of its expiration. When it is the insurer who promotes the cancellation, the term is extended to two months. Due to the nature of the law, any variation in these terms must be included in the contract and can only improve the interests of the insured.

And this is for all insurance contracts, whether you have signed them over the phone, the Internet, through an insurance agent or broker, at the bank, or at the insurer’s office. It is also not useful to do it in any way, but if you want to know how to do it effectively, in this other post I will tell you. How to cancel insurance: Guide to do it efficiently.

If you do not communicate your wish to cancel the insurance correctly and within the legal term, the contract is automatically extended for a new year. And this will happen successively year after year, as long as one of the parties does not oppose the extension.

Is the insurer obliged to inform me of the renewal of the contract?

The answer to this question is found in the Insurance Contract Law, which establishes:

The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.

As you can see, it should only inform you in advance when the conditions of the insurance contract change. And generally, these changes will almost always be tied to the insurance premium.

Price is one of the fundamental conditions of the insurance contract. Therefore, in the case of variation, the insurer is obliged to notify you two months in advance. It should also be done if any other change occurs, even if it may seem irrelevant. For example, if it increases, eliminates, or modifies coverage and benefits or increases franchises or copayments.

But be careful that they are not always obliged to communicate changes in advance, especially when this modification is already regulated in the contract. These are some of the most common:

  • The premium goes up or down due to the application of surcharges or bonuses for claims.
  • That the price of the insurance is updated according to the variations that the IPC may suffer.
  • The commercial discounts applied by the insurer at the time of signing the insurance disappear.
  • The policy includes a clause for the automatic revaluation of the insured capital, in which case the price of the insurance also increases.
  • Modification of taxes and fees levied on insurance premiums.

Therefore, in the renewal of the contract, the insurer has to meet certain requirements. Let’s see what consequences not complying with them can have and how they affect you.

What can I do to cancel my insurance after the deadline?

At the beginning of the article, I told you about three situations that happen quite frequently among blog readers.

When you receive the call or letter from the insurer demanding payment of the receipt you have returned, you realize you have a problem. You may think that it is too late to find a solution, and you wait to see what happens.

As in chess, sometimes the best defense is a good offense. You are aware that you have not done something or have done it wrong, but has the insurance company acted correctly before the renewal?

1. The insurance has not yet expired

In this case, the first thing you should check is how much time you have left until the renewal date. If you have more than a month left, prepare your cancellation letter and send it to the insurer before the legal deadline.

If there is less than a month left, check if the insurance will cost you more than the previous year or if there are any changes in the conditions.

The insurer must confirm whether or not to proceed with the cancellation. But while it does, it doesn’t hurt, if you are determined to change companies, order your bank to return the receipt or cancel the credit card before it expires.

2. The policy has already expired.

The expiration date has arrived and the insurance has been renewed for another year. The way to act in this case does not differ too much from what was done before when the contract had not yet expired. It is only about changing the times of each action.

If your decision is to change your insurance company, the first thing you will have to do is return the receipt that you have received from the bank.

The next step is to check if the insurer notified you within the legal term of any change in the policy. You also know the renewal price so you can compare it with the previous year. With this, you already have all the elements to communicate to the insurer your willingness to cancel the contract. Do not worry about doing it after the expiration, the important thing is to let him know the reasons why you give up on extending the insurance.

Did you direct the insurance payment on the credit card? If you have not been smart or acted as I pointed out before, you will have problems returning the charge because to do so, you will need the authorization of the insurer. And you do not need to have a master’s degree to know that it will not be authorized.

How do insurers act in these cases?

I told you at the beginning, canceling the insurance after the deadline is risky because current legislation allows insurers to carry out the collection of the insurance when there has been a default on the part of the policyholder in the payment.

After one month from the expiration date with the pending receipt, the law provides for the suspension of the policy coverage. It also establishes a period of six months for the company to claim the payment, if it does not do so within this time, the contract is automatically terminated.

There is no uniform criterion of insurers when claiming. Each sets its own business rules, but it seems that most have adopted a common protocol.

Although the cost of claiming the premium in court has decreased, few venture with claims of less than 600 dollars. When it comes to higher amounts, they also think about it, especially if they have breached the rule before the renewal of the insurance.


On paper, the options you have to cancel your insurance after the deadline are few, and not always risk-free. In practice, knowing a little about the insurance legislation, it is much easier, right?

This is all due to the fact that insurers frequently act arbitrarily, in breach of the law. This gives the contract holder arguments to justify that he can cancel the insurance after the deadline.

In summary, you only have to carry out a couple of actions to defend yourself in the event that the insurer claims you for the insurance payment:

  1. Check if the conditions of the contract have changed and if the company informed you two months before the expiration of the modification.
  2. Communicate in writing to the insurer your wish to cancel the insurance and the reasons why you do so after the deadline
  3. Return the receipt if it has been passed to you at collection or instruct your bank to return it. If you pay by card, cancel it before the insurance charge arrives.

Then, you can only wait for the company to terminate the contract or for it to expire six months after it expires.

Now your turn has come, help others by sharing this article on your social networks and answering this question in the comments.

Do you change insurers frequently, do you notify them of the cancellation of the insurance on time?


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