Insurance: do you have to declare your license withdrawal?

When your driving license is suspended or canceled, it is mandatory to inform your auto insurance company. Depending on the reason for your license withdrawal, expect measures impacting the price of your insurance premium. Focus on the steps to take with your insurer when revoking your driving license.

Should you report your license withdrawal to your insurance?

The law requires policyholders to declare any change that could impact the level of coverage. Consequently, it is mandatory to declare a license withdrawal, regardless of the reason or period of suspension or cancellation. Moreover, you have 15 working days to notify your insurer after receipt of your withdrawal notification.

How to declare your withdrawal? Simply send a registered letter to your car insurance company with notification of your license withdrawal indicating the reason for suspension and a photocopy of your registration document.

What is the risk if I do not declare my license withdrawal to my insurance?

Being a legal obligation, if you fail to declare your license withdrawal, the law recognizes the false declaration. According to article L113-2 of the Insurance Code, a false declaration, whether intentional or not, constitutes an offense. Consequently, not declaring your license withdrawal carries serious consequences.

• Cancellation of your insurance contract: rest assured, nullity is rarely applied if you forgot to declare your license withdrawal (this is called unintentional misconduct). On the other hand, your insurer may reduce your guarantees or apply a price increase.
• Refusal of coverage: the insurer has the right to refuse to compensate you in the event of a claim if you have not declared your license withdrawal
• Increase in your insurance premium: if your insurer becomes aware of your license suspension, it may decide to apply an additional premium. Your car contribution will therefore be more expensive.

>>>I find car insurance after termination of my contract

License withdrawal: what impact on car insurance?

In the event of license suspension, insurers apply additional premiums. For what? Because a license withdrawal leads to an increase in risk through your inappropriate driving behavior. So how much does your insurance premium increase? This will depend on the reason for your license withdrawal and the duration of the suspension:

• Suspension of 2 to 6 months: 50% additional premium
• Suspension 6 months and more: 100% additional premium
• Cancellation of license after several withdrawals: 200% surcharge
• Do not declare your license withdrawal: 100% surcharge

Good to know: insurers can apply up to 400% increase in the event of withdrawal. You will find the price of your initial insurance premium after 2 years.

Please note, the withdrawal of your license for alcohol or drug use triggers more sanctions. Car insurance then recognizes intentional misconduct: driving under the influence of alcohol or drugs is a serious offense. It even constitutes an exclusion of warranty in auto contracts:

• Cancellation and termination of your auto insurance
• Refusal of compensation for damage caused in the event of an accident: in this case, your insurer simply refuses to maintain your guarantees, it is therefore up to you to financially assume the costs incurred
• Application of a penalty
• Additional increase in your insurance premium

Did you know? In the event of termination of a car contract by an insurer, you are registered in the national file of canceled drivers. It is then difficult to find car insurance. You will have to turn to specialized insurance companies or pay full price!