What is an auto insurance contract?

What is an auto insurance contract?

An auto insurance contract (also called an "insurance policy") is the official document that materializes the agreement between the underwriter and the insurance company. It contains various clauses detailing the general conditions and special conditions inherent in the coverage taken out, such as the price of the insurance policy, guarantees, deductibles or exclusions of guarantees.
What is a clause?

A clause is a paragraph of your insurance contract that defines the rights and obligations of the insurer and the insured to each other. The purpose of a clause is to specify how the guarantees to which you subscribe work and what are the commitments of each of the two parties.
The effective date of the insurance policy

The effective date is the date from which the guarantees of the insurance contract come into force. The contract can take effect either at the same time it is concluded or at a later date according to a date agreed in advance between the insurer and the insured.

auto insurance contract
The duration of the insurance contract

The duration of the contract taken out extends over a whole year. The duration does not necessarily correspond to the calendar year. For example, if the subscription takes place in October 2016, the auto insurance contract runs until October 2017, when the guarantees will no longer be valid.
Tacit renewal at expiry

After this period, a new auto insurance premium will have to be paid to be sure that you are covered in the event of a claim. If the insured does not appear within the time limits set by the insurance company to terminate the insurance policy (i.e. no later than 2 months before the end date of your contract), the insurer is entitled to renew tacitly the auto insurance contract.
A level of guarantee adapted to each contract

While it is now possible to change auto insurance after one year of engagement, keeping the same contract for several years in a row is still commonplace. However, over time, the level of risk and the needs of policyholders inevitably change: a new car often no longer needs maximum coverage after 5 years, just as many young drivers prefer to opt for a new car. different offer a few years after obtaining their license.

It is therefore necessary to regularly take stock of your auto insurance contract by evaluating the guarantees that make it up:

    At any time, the insured can contact his company to request the addition of additional guarantees (0 kilometer assistance, glass breakage guarantee, etc.) or opt for a more protective formula such as "all risks" insurance;
    It is possible to remove an option that no longer meets the needs of the insured. To do this, the insurer must be contacted by registered mail. If no refusal is expressed within 10 days, the request is considered granted.

Insurance companies have the right to refuse contract modification requests from their policyholders, without any supporting documentation being provided.