Can my unused insurance be refunded?
My car insurance starts on November 1 each year. I sold my car on August 7 and have not bought another car. I cancelled my car insurance and asked the insurers for a refund of the September and October months of the policy but the insurance company says that none is payable. Is this correct? R.B.
No, this is not correct. If you have sold your car and do not plan to replace it or you simply want to change insurers for a new car, you are within your rights to cancel your existing policy before its renewal date (échéance) and the insurer should reimburse you for any part of the premiums paid relating to the unused period after you cancelled.
Once your car is sold, the contract is suspended the day afterwards, at midnight. However, if you do nothing, then it will only officially end in six months.
If you want to cancel the policy according to the proper procedures, you need to tell the insurer by recorded delivery letter with receipt slip (lettre recommandée avec avis de reception) and the cancellation should then take effect 10 days after the letter is sent.
A model letter can be found at tinyurl.com/ycbj72ae.
In the letter you should declare the car has been sold, and include your full name and address, the number of your insurance contract, date of sale and the make and number of the car.
You should attach a photocopy of the Certificat de cession form which has to be filled out by seller and buyer when a car is sold.
