In the past it was common to tacitly renew insurance policies. The insurer is now obliged to inform the insured about the extension with the option to cancel the policy. A contract term of one year is now standard. Most policyholders hardly think about the insurance they pay for monthly. Insurance is taken out and you don’t have to worry about it anymore. In the event of damage, the insured will only check to what extent they are insured for it. It is not a fun activity to check all current insurance policies. However, it is wise to do this once a year. You can do this together with your advisor, but you can also reserve an hour yourself to delve deeper into the matter. You must check whether the insurance still suits your current situation. You should also consider the financial consequences of the death of a family member.
How do I cancel an insurance policy?
You must inform the insurer in writing of the cancellation. If you switch to another insurer, you can also request them to cancel the insurance with the old company. You place the responsibility on the new insurer, and you can contact the new insurer if the insurance has not actually been terminated. In the past, insurance policies often had a notice period of two or even three months. They now use a period of one month. You do not have to terminate some insurance policies because a clear end date has been agreed (for example temporary travel insurance). For example, term life insurance policies can terminate you on any date. This does not apply if the policy is linked to a mortgage.
What is the term of my insurance (contract)?
As members of the Association of Insurers, the insurers have agreed that contract terms of one year will be maintained from 1 January 2010. It is permitted to agree on a longer contract period, but this must be explicitly discussed with the insured. By means of a double signature, the insured indicates that he agrees with the insurance and also with a longer period for which the contract will run.
What should I pay attention to when canceling the policy?
It is wise to first take out replacement insurance before canceling the old insurance. You can agree on a future commencement date with the new insurer. Only then will you cancel the insurance with the old insurance company. This way you avoid being temporarily uninsured and the new insurer not accepting you for insurance for one reason or another.
Save by switching to another insurer
Taking a critical look at your current insurance policies can be worthwhile. Over the years, it is quite conceivable that you can insure the risk much cheaper with another insurer. If you are satisfied with your current insurer, it is not wise to switch for a few euros per year. However, the differences can be so great that you can save several tens of euros per year.