A Complete Guide on How to Cancel Your Car Insurance in Spain: Processes, Legislation, and Common Mistakes

Be that as it may, you do not want to continue with your company and you have thought about cancel your car insuranceBeyond not notifying anyone and returning the receipts, it is advisable to know the processes and legislation applied to cancel your car insurance so that you do not have surprises on renewal day.

In this article, we offer you a complete guide on how to cancel your car insurance in Spain in accordance with current legislation. We’ll tell you when you can cancel your policy, how to do it before it expires, and even what to do if you realize it’s not the right insurance for you shortly after purchasing it. Plus, we’ll talk about common mistakes and answer frequently asked questions.

Current legislation in Spain

In Spain, Law 50/1980, of October 8, on Insurance Contracts, sets out the key regulations you should know when canceling your car insurance. This law establishes that the deadline to cancel your policy is 30 days before your expiration date. If you do not do so before this limit, the policy will automatically renew.

However, there are exceptions that allow you to cancel the insurance after the deadline, such as when the insurer modifies the coverage or the price of the policy without notifying you in writing.

When can you unsubscribe

Before canceling your insurance, it is essential to understand when you can do so. Generally, you can cancel 30 days before the policy expiration date. Furthermore, if the insurer performs changes to the policy without notifying you in writing or if the driver’s risk requirements change, you also have the right to cancel after the deadline.

These changes may include a reduction in the premium price due to a specific situation, such as no longer being a new driver.

Cancel the insurance before expiration

If you want to cancel your car insurance before the expiration date, there are exceptional situations that allow it. In my case, I sold my motorcycle 2 months before it expired and since I had no plans to have another car, I canceled it directly.

There are cases in which, for example, if the insurer modify the conditions of the contract or eliminates coverage, you have 15 days to accept or reject these new conditions. If you choose to decline, you do not need to give 30 days’ notice. The same applies if the driver’s risk requirements change, due to being new, which is most common.

If I regret / find another better option

If you recently purchased car insurance and realize that it is not right for you, you can cancel it without penalties as long as you purchased it online. You must notify the company within 14 days later at the date of contract, in writing.

This will allow you to avoid financial penalties and ensure that you are not included in the list of defaulters.

Common mistakes

One of the most common mistakes when canceling car insurance is return insurance receiptwhich can have serious consequences such as being included on lists of defaulters or facing legal claims.

If you are in a difficult financial situation and cannot pay the premium, the company is not obligated to provide you with coverage in the event of an accident. Some frequently asked questions include when it is best to cancel your insurance, how to cancel it, and whether the process is the same for all companies (generally, you must send a letter informing your decision).

• If you have obtained your insurance through an insurance brokerage, How to proceed to unsubscribe? Generally, after communicating your desire to cancel to the company, it will notify the corresponding brokerage.
• Is the process uniform across all insurance companies? Mostly, they require a formal writing to notify the cancellation decision. The variation lies in the number of options to send this notice. In addition, some companies allow you to manage the cancellation through their customer service by telephone.
• To cancel your car insurance, which are the steps to follow? It is essential to notify the company at least 30 calendar days in advance before the policy expiration date. This notification must be made in writing, using means such as fax, telegram or certified letter. This way, the insurer will have a record of your request and you will have proof in case you need to make a claim. However, if the insurer makes changes to the policy without notifying you, you are not obliged to meet the deadline. 30 days. You can find more details on how to cancel car insurance here.
• When is it advisable to cancel car insurance? There are various circumstances, such as the acquisition of a new vehicle, the sale of the old one or the lack of a current technical inspection (ITV), that could justify canceling your policy.

Source: BOE and various media.