noelrosie

I wonder if anyone can help me.? I want to cancel my Buildings and Contents insurance with Groupama which is due on 22nd July 2012 and reinsure with another Insurance Company.
My Bank has just told me that it is Spanish law that 2 months notice must be given of intention to cancel insurance. Has anyone else come across this or is it just another excuse to make me stay with them?

noelrosie

I've just googled it and found that they are correct according to an article published in the Canarian Weekly 14th May 2010 - two months cancellation is required by Law 50/1980.

anonimouse

They will probably take the premium from your bank, I would cancel the payments by telling your bank not to make any payments to them, and give them notice (2 months) then the most they can ask you for if they want to be funny is two months surely? They will not refund you otherwise, of that I am sure from experience.

noelrosie

Unfortunately not ... if we cancel without giving two months notice and just don't pay the direct debit, the insurance company can take us to court and win according to the article I read
http://www.myspaininsurance.com/insu...cellation.html
It is an annual policy paid once a year.

whitelinen

Assuming that you arranged this through a broker contact them asap and tell them you are not happy withy the premium and that you want them to look again at the cover and premium.

I am with Groupama and I did this last time when noticed how much I was paying on DD and was told there had been automatic increases in cover etc. that I just had not noticed. My fault I know.

Went through whole thing carefully and was over insured end result was that I ended up with a drastically reduced premium. No broker want to lose their comission, they will sort it out. HTH

noelrosie

I have spoken to Groupama in English on the telephone and they have confirmed that I must give two month's notice by law. No 'ifs' no 'buts' end of story. The 'broker' is our bank, Banco de Valencia, who gave me the same story - it's one more year commission for them I suppose

Thanks for the suggestions anyway.

Domino

Looks like you are inside the 2 months so will have to renew with the current insurer - but you should be able to give them notice to them at the same time.
Leaving it until "later" could mean forgetting it and have the same problem next year.

snikpoh

I think that you may all find that this is NOT correct.


It is my understanding that the law has just changed to allow cancellations without giving two months notice.


I suggest that someone contacts an abogado and check if (and when) this new law came in to force.

noelrosie

That is exactly what we will do ... see the bank (effectively the broker) when we go out in August and deliver a letter to them cancelling the insurance from July 2013 and get a receipt from them. At the same time we will send a letter 'certificado' to the Head Office of Groupama in Madrid advising them of cancellation for July 2013.

So very different from the UK, where if you cancel an annual insurance policy, you often get a refund of the months left outstanding, less an administration charge!

anonimouse

Why don't you just give them two months notice in writing, (make sure you get confirmation in writing back too) then choose a new company? Paying extra for two months is surely better than paying for another year with a company that has peed you off, I would sack them, give them the notice they want and renew.

noelrosie

But it is an annual policy ... 300€ is taken in a lump sum every 2nd July for one year's insurance in advance. I don't pay monthly and so they are within their legal right to demand that I inform them by 2nd May if I do not want to reinsure with them. It is too late for this year's renewal.

snikpoh

NO.

See my previous reply.


I have checked and the law HAS changed (or so I'm told) - cancel the bill payment / direct debit now.

noelrosie

I have emailed my gestor and am awaiting a reply ... I missed your previous post, thanks for replying again.

bobd22

Must admit last month when over in Spain I went into our solicitors who acted as broker for life insurance re cancelling it they contacted their head office who deal and advised me to also send an e mail in October cancelling as a precaution as that is 2 months prior to renewal. The girl also said to cancel direct debit as precaution which I done and I will follow up with the e mail as well and request response when completed.

megmet

We recently cancelled giving less than a months notice, we first of all instructed the bank to cancel the direct debit... which they were happy to do as we were changing to their insurance.

All that has happened in the last five months is that I've had a couple of phone calls from the insurers pointing out that I've cancelled and asking why....
They then offer to reduce my premium if I return, but they should have thought about a reduction earlier as if they had I may not have left them!

I wouldn't worry about any repercussions of not giving two months notice whether the law has changed or not, it really would not be worth their while to pursue such a small amount through the courts!