Stephen Smith (France) Ltd

[Lesley]

Lived in France for a year? Renewing your car or house policy? Expect to ring round and find the cheapest quote?

Don't even think about it. You are stuck with the same insurer unless you give at least two months' notice before the due date. This must be in writing and by signed-for registered post (une lettre recommandée avec accusé de réception). All French insurance contracts have tacit continuance (tacite reconduction) and if you fail to send your letter off, you must sell the thing insured or prove death or bankruptcy.

The only other way out short of leaving a pile of clothes by the banks of the Loire and marking correspondence "Gone Away" is if you can calculate that your premium has gone up by considerably more than the year-on-year index should have allowed it to do.......but you will have to read your small print very carefully and be prepared to stick to your guns when the broker who stands to lose your business tries to confuse you into caving in by citing the law as set out in the Code des Assurances.

[Site Admin]

Article L 113-15-1 has been added to the Code des Assurances. Enacted by Loi nº 2005-67 (Loi Chatel) of 28 January 2020 the changes came into force as of 1st August 2005 making the consumer’s lot a happier one. A translation of some of the text follows.

"In the case of contracts having automatic renewal and which insure individuals but not their professional activities, a reminder of the final date for the insured to exercise his right to cancellation must be included with each annual renewal notice of the premium or subscription.

Where this reminder is sent less than 15 days before the final cancellation date or where it is sent after this date, the insured is informed by the reminder that he has a time limit of 20 days following the date of the reminder being sent to cancel the renewal of the contract. In this case, the period to cancellation runs from the date as postmarked.

When this information has not been communicated in accordance with the terms of the preceding paragraph, the insured can end the contract, without any penalty, at any time starting from the renewal date by sending an LRAR to the insurer. The cancellation takes effect from the day after the date as postmarked.
The insured is liable for a pro-rata part of the premium or subscription corresponding to the period during which he had cover, this period being calculated up to the date of the cancellation taking effect. If applicable, the insurer must reimburse the insured within 30 days counting from the date the cancellation takes effect, a pro-rata part of the premium or subscription corresponding to the period during cover would have run, this period being calculated from the date the cancellation came in to force. In this case should the sum not be reimbursed, the amounts due will be subject to the rates of interest set out by law.

The terms and provisions of the Article do not apply to life-assurance contracts, contracts taken out by groups or other collective bodies."

French version of the full text including provisions covering credit available on

http://www.minefi.gouv.fr/DGCCRF/04_dossiers/consommation/economic/loichatel21012005.htm?ru=04

and

http://www.legifrance.gouv.fr/WAspad/UnTexteDeJorf?numjo=ECOX0307005L