New or experienced driver, choosing car insurance remains a delicate step. Which guarantees should one choose to enjoy good protection? Depending on the vehicle and driver profile, which car formula is the most suitable? To respond to these unsettled drivers, there is no obligation car insurance: how does it work, what is the price? We tell you everything!
Definition of optional car insurance
By definition, non-binding car insurance is a car contract that can be canceled at any time. The insured can thus cancel his car insurance on the signature date, after a few days or after a few months.
The advantage of this car insurance is to give drivers the freedom to take out car insurance. Faced with rising prices and numerous guarantees, it is sometimes difficult to position yourself. So choosing car insurance is worth taking the time to fully understand your needs and the different options available. But you can compare offers online to find the best formula.
This is how non-binding car insurance works
In January 2015, the entry into force of the Hamon Act simplified the procedures for canceling the insurance. Since then, policyholders can cancel their car insurance without notice and without proof beyond the first year of commitment.
The advent of non-binding car insurance supplements this law to give even more freedom and leeway to French drivers. By subscribing to this type of car contract, you can cancel your car contract at any time, regardless of the duration of the commitment. To do this is nothing simple, you just need to inform your insurance company by mail, e-mail or telephone.
There are no insurance companies specializing in non-binding car insurance. If you want to subscribe to it or find out more, contact the insurance companies or do a comparison online.
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Price of this type of insurance for my car
The price of non-binding car insurance is assessed in the same way as for a classic car contract:
- Your car’s characteristics: make, model, age, power, etc.
- Your driver profile: number of years of driving licence, loss experience, bonus-malus coefficient
- The use of your car: number of kilometers
- Garage space: private parking lot, public road, closed garage, etc.
- Selected guarantees
In terms of price, the insurance companies do not charge a non-binding additional premium for car insurance. However, they may require you to take out a minimum guarantee level.
How do you cancel a car insurance without obligation?
You can cancel your car insurance at any time without obligation. Obviously, once you’ve signed your car contract, it can be cancelled.
In addition, no specific action is required, termination is permitted as soon as the insured informs his insurer. You can make your request by phone, email or post. As it is non-binding insurance, no proof of termination or change is required.
How long does it take to finalize a car insurance contract?
In connection with classic car insurance, the termination of a contract must comply with the law:
- Before the first year of the obligation: You must provide proof of the sale of your vehicle or of a change in situation that affects your level of cover. It is mandatory to send a letter of termination by registered letter with acknowledgment of receipt.
- In addition to the one-year commitment: The insured can request termination of their car contract at any time without documentation.
What to remember about no obligation car insurance
In short, non-binding car insurance gives you the opportunity to take out a car contract with the option to end it whenever you want.
It is this breaking flexibility that distinguishes this type of contract from conventional car insurance. Regarding the price, no-obligation car insurance does not show a higher price. However, you will generally have to choose a formula with extended guarantees.
Non-binding car insurance is therefore an advantage because it gives car policy holders greater freedom of action. It is up to you to make the wisest choice for your use!
