Hamon law: simplified insurance termination

The Consumer Law, also called the Hamon Lawallows consumers to cancel their auto, motorcycle, home or other insurance anytime after one year of subscription. But how exactly does this law work? Who is concerned ? And what are the steps to terminate with the Hamon law?

What is the Hamon law or “consumer law of March 17, 2014”?

What is it for ?

The Hamon law, or the Consumer law (law n°2014-344), officially entered into force in January 2015. It allows policyholders to terminate their insurance contract as soon as they wish, after one year of subscription ( i.e. the current contract must be at least one year old). After this time, you can request termination at any time, without reason and free of charge.

Why was it set up?

Each year, the insurance contracts are automatically renewed, this is called the tacit renewal. Because of this, almost 30% of French people have already been forced, at least once, to extend their commitment when they wanted to change to another insurer.

To avoid this situation, the Chatel law has already forced, since 2008, insurers to inform you of the notice period (deadline) to terminate certain contracts when they expire. From now on, even once this limit has been passed, it is possible to request cancellation without charge or proof from the moment the subscription dates back more than a year.

Which contracts are affected by the Hamon law?

Termination by the Hamon law concerns the following insurance contracts:

  • car,
  • motorbike,
  • dwelling,
  • and the affinity insurance products (cover for smartphone or household appliances for example).

Since December 2020, it is also possible to request the termination of your health insurance under the same conditions as with the Hamon law, but this is another law, that of the infra-annual termination.

How to terminate a contract with the Hamon law?

To terminate with the Hamon law there are two possibilities. You can :

  • take out new insurance and, in this case, your new insurer will take care of the cancellation procedures, so you don’t have to do anything ;
  • if you do not wish to take on a new contract, cancel your insurance yourself.

If you let your new insurerone month after your request, your contract is terminated and your new coverage begins.

If you take charge of the terminationyou must send a registered letter with acknowledgment of receipt to your insurer to notify him of your request, invoking the Hamon law.

If you have already paid your annual contribution, you will be reimbursed for the overpayment by the former insurer. On the other hand, the latter is not entitled to ask you to pay any penalty.

Who can cancel with the Hamon law?

All individuals who have taken out a car, motorcycle, home contract, or an affinity insurance (extended warranty) can terminate their contract with the Hamon law. Indeed, this law applies to individuals outside their professional activities.

What are the notice periods with the Hamon law?

When you take out an insurance contract, you have a 14 day cooling off period. Then, you have to wait one year of subscription to be able to cancel your car, motorcycle, home or health insurance whenever you want. Except for borrowing insurance, which can be terminated at any time.

When you end an ongoing contract, the termination is effective one month after the request.

Hamon law FAQ

  • How to withdraw from a contract?

    After taking out an insurance contract, you have the right to withdraw within 14 days. To do this, you must notify the professional by sending him by registered letter with acknowledgment of receipt.

  • The Chatel law requires insurance companies to inform their policyholders of the expiry date of their contract to allow them to terminate it more easily if they wish. The Hamon law allows a contract to be terminated after one year, without justification.

  • You can cancel your insurance at the following times:

    • expired with the Chatel law;
    • anytime after one year of subscription with the Hamon law;
    • in the event of a change of situation;
    • in the event of an increase in contributions or the amount of the home deductible by the insurer;
    • if your insurer cancels your contract.
  • After a cancellation, you can use an online insurance comparator to find out which offers are most likely to suit your profile and your needs. Online subscription is then done very quickly.

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