Since the Hamon Law came into force, switching car or home insurance no longer means writing a registered letter yourself or keeping track of your policy’s renewal date. Under certain conditions, your new insurer can handle the cancellation with your previous insurer.
This process, designed for compulsory or common types of insurance, is still subject to certain rules: not all policies are covered, and coordination between the two insurers can involve some friction points that policyholders should be aware of before delegating the process.
Cancellation mandate: what your new insurer actually does for you
When you take out a new car or home insurance policy, your new insurer will generally ask you to sign a cancellation mandate. This document authorizes them to notify your previous insurer on your behalf. They draft and send the letter, and make sure the start date of your new coverage coincides with the end of your old policy.
In practice, your new insurer submits the cancellation request to prevent any gap in coverage. This coordination is especially important for car insurance, where third-party liability coverage is compulsory: driving without insurance for even one day can result in a fine and leave you without compensation in the event of a claim.
The process works in the same way for a tenant’s home insurance, which is also compulsory. Your new insurer sends the notice, and your old policy ends after the statutory notice period, generally one month after the request is received.
You can switch from one policy to another without taking any further action, provided you have signed the mandate. Finding affordable home insurance while delegating the cancellation is therefore straightforward for eligible policies.
Policies eligible for cancellation by your new insurer and those that are not
Not all insurance policies can be cancelled through this process. The Hamon Law covers cancellation during the policy term—that is, the right to cancel at any time after the first year—for three main categories:
- Car and motorcycle insurance, for which third-party liability coverage is required by law
- Tenants’ home insurance, which is compulsory under the lease
- Affinity insurance policies taken out alongside a purchase (such as an extended warranty on a phone)
For these policies, your new insurer can manage the entire process. Health insurance, borrower insurance and retirement protection policies, however, are subject to different rules. Cancelling supplementary health insurance, for example, is covered by a separate scheme and often requires you to contact your provider directly.
This is a common source of confusion: when switching health insurance providers, policyholders sometimes assume their new provider will take care of everything, just as with car insurance. That is not always the case. Check whether your policy falls within the scope of the Hamon Law before relying on your new insurer to cancel it, so you don’t end up with two active policies at the same time.
One-month notice period and risk of overlap: potential sticking points
Cancellation does not take effect immediately. A one-month notice period starts when your previous insurer is notified. During this time, your old policy remains active and premiums are still payable.
Your new insurer must therefore set the start date of your new coverage to match the actual end date of your old policy. In theory, this synchronization happens automatically. In practice, delays can occur, particularly if the notice takes time to reach your previous insurer or if the date it was received is disputed.
Double payments and refunds for overpayments
If your previous insurer collects a premium after the cancellation takes effect, it must refund the overpayment. You may sometimes need to follow up with your previous insurer to get the money back, which runs counter to the idea of a fully delegated process.
Keeping a written record of the signed mandate and the date the notice was sent is the best precaution. In the event of a dispute, you will need to prove that the cancellation request was submitted correctly.
Cancellation at renewal or mid-term: the new insurer’s role differs
The rules described above apply to cancellation during the policy term, after the first year. Before the end of that first year, the situation is different. You can cancel only in specific circumstances:
- Change of address or employment status
- Sale of the insured vehicle
- A change to the policy terms by the insurer (a premium increase or change in coverage)
In these situations, you must notify your insurer of the cancellation yourself, usually by registered letter. Your new insurer does not take part in the process, because the reason for cancellation relates to a personal event that only you can substantiate.
Another scenario is cancellation at the annual renewal date, which is governed by the Chatel Law. Your previous insurer must send a renewal notice stating the deadline for cancellation. If it fails to send the notice or sends it too late, you have additional time to cancel without penalty. Here again, you—not your new insurer—must take action.
What your new insurer won’t check for you
Delegating the cancellation does not mean you can skip a few checks. Your new insurer will handle the notification, but it will not check whether your old policy included specific coverage—such as legal protection, extended glass-breakage coverage or roadside assistance abroad—that may not be included in your new policy.
Comparing the two policies line by line before signing the cancellation mandate can help you avoid losing coverage without realizing it. The administrative transfer is simple, but transferring coverage is not.
One final point is worth noting: some insurers make acceptance of the mandate conditional on immediately taking out the new policy. This means you may be committed before you know for certain that your old policy will be cancelled on time. Reading the terms of the mandate—not just those of the new policy—can protect you from this kind of situation.
