An insurance contract does not jump at the slightest collision. But when claims keep coming, an insurer can end up pulling the brakes. What you need to know.
A storm that damages a roof, an unwelcome burglary, repeated broken glass, a rear-view mirror found on the ground in a parking lot, a fender rubbed without witnesses… Each statement is legitimate. However, when it comes to automobiles, insurers keep a very close eye on the frequency of declarations. And, when warranty calls come up too often, some policyholders receive a letter announcing that the contract will not be renewed. Because, yes, a disaster, even without fault, has a cost.
In auto insurance, termination directly linked to a claim is only authorized in two specific situations: driving under the influence of alcohol or an offense leading to an administrative suspension of the license for at least one month, or even its cancellation. Apart from these two cases, a disaster does not open the way to an immediate rupture. But insurers have another lever, generally unknown: termination at maturity, perfectly legal, which allows the contract to be terminated at the time of its annual date, provided that the insured is notified two months in advance. This practice is not presented as a sanction, but as a portfolio adjustment. Some companies prefer to limit profiles deemed too expensive, reduce their exposure to certain risks or reorient their offers.
It is in this context that the frequency of claims, even those not at fault, can weigh heavily. In other words, from three declared losses, a contract can fall into the red zone. While insurers do not publish an official threshold, in practice the most common limit revolves around this figure. For the insured, the most immediate consequence is obvious: he finds himself without coverage. And when it comes to compulsory insurance, such as car or home insurance for a tenant, he must find a contract as quickly as possible. A termination can then make the search more complicated, because insurers consult the AGIRA file, which lists people whose contract has been terminated. Some refuse to insure, others accept, but charge higher rates.
There are, however, avenues for appeal. The Central Pricing Bureau can require a company to provide at least the minimum liability coverage, even if the price set is often high. The insured may also decide to terminate, in return, all other contracts held with the same insurer, this right being provided for by law. Just one caution: if he makes this choice for a car contract, he will no longer be able to contact the Central Pricing Office for a year. Information to remember.
