Cancelling or switching an insurance policy without losing money

Key rules

• Order: Confirm the new policy's start date and pay it before you give notice to the old insurer.
• Proof: Send notice by a means that proves delivery, and keep the receipt and a copy of the text.
• Direct debit: Cancelling the policy does not stop the direct debit; tell your bank as well.
• Refund: A normal non-renewal gives no refund, because you are covered until expiry.

The safe order: new policy first, then notice

Arrange the new policy before you tell the old insurer anything. Get the new start date and time confirmed in writing, and pay the new premium. Cover normally starts only after payment, unless the insurer agrees otherwise. Set the new start date to match the day the old policy expires, so there is no gap and no overlap.

Keep both policy documents, the new certificate and your proof of notice until the old policy has ended. The timeline and checklist below show the steps in order.

Give notice in writing

To stop a policy renewing, give written notice at least one month before it ends. The insurer must give you at least two months if it does not want to renew.

The notice must be sent in a way that proves it was sent and received. Your options, from safest to weakest:

• Burofax with content certification. This is the most secure, because it proves what the letter said.
• Certified letter with acknowledgment of receipt. This is also accepted.
• Email, online form or your broker (mediador). Many insurers accept these, but they are harder to prove if there is a dispute.

Keep the receipt and a copy of the notice text. A Spanish-language notice you can adapt is included below.

Will you get money back?

On a normal non-renewal, you get no refund. You paid for the period that has just ended, and your cover lasts until expiry.

You get a pro rata refund for the unused time when the contract ends early for reasons outside your choice or that remove the risk. Examples are a total loss, the sale of the insured property, or the insurer ending the policy mid-term. If the insurer changes the premium terms, you may cancel and get a refund for the unexpired period.

If you cancel mid-term without a valid reason, the insurer may keep the premium for the current period. Your policy conditions decide whether voluntary mid-term cancellation is possible at all, so read them before you act.

Stop the direct debit

Cancelling the policy does not stop the direct debit by itself. Tell your bank to revoke the SEPA mandate or to block the insurer as creditor. Your bank can then refuse further receipts.

If a debit still goes through:

• For a standard SEPA Core debit, you can ask for a refund within 8 weeks of the debit, with no questions asked.
• For a debit you never authorised, you can ask your bank to reverse it for up to 13 months.

Show the bank your cancellation notice as proof.

After a claim

The law gives neither side a general right to cancel just because you made a claim. Many policies do allow it, usually with notice and a refund of the unused premium. The notice period varies, often from 15 days to one month. Check your policy conditions. A claim you already made stays payable.

Timeline and deadlines

• Arrange the new policy and get its start date and time confirmed in writing, with the premium paid: before you cancel the old policy

• Align the new start date with the old policy's expiry: when you set up the new policy

• Tell your bank to revoke the SEPA mandate or block the insurer: after you send the notice

• Ask your bank to reverse an unauthorised debit: up to 13 months after the debit

• Give notice to end a policy after a claim, if your policy conditions allow it: often 15 days to 1 month, as set in the conditions

Documents you need

• Written cancellation or non-renewal notice, sent by a means that proves it was sent and received. A burofax with content certification is the most secure; a certified letter with acknowledgment of receipt is also accepted. You write it yourself.

• Proof of delivery: the burofax or postal receipt and a copy of the notice text. Keep them in case of a dispute.

• Written confirmation from the new insurer of the new policy's start date and time. The premium is normally paid first, because cover only starts after payment unless agreed otherwise.

• Both policy documents and the new certificate, kept until the old policy ends.

Checklist

• Send the non-renewal notice to the old insurer at least one month before expiry, by a means that proves delivery.

What to watch out for

• The direct debit can keep running: Cancelling the policy does not stop the insurer taking payments from your account. Ask your bank to revoke the SEPA mandate or block the insurer as creditor. If an unauthorised debit goes through, ask for a refund within 8 weeks for a SEPA Core debit, or up to 13 months for an unauthorised one. Tell your bank as soon as you send the cancellation notice, and keep proof of that notice.

• Cancelling without cause can cost you the premium: If you cancel mid-term without a valid reason, the insurer may keep the premium for the current period. A refund for the unused time is due only when the contract ends for reasons that remove the risk, or when the insurer changes the premium terms. Read your policy conditions on mid-term cancellation before you send notice, and ask the insurer for the refund in writing if you are entitled to one.

Cancellation notice for an insurance policy in Spanish

Send this at least one month before the policy ends. A dated written notice that you can prove you sent is what shows you cancelled in time. Fill in the blanks, then print, sign and send it by burofax with content certification. A certified letter with acknowledgment of receipt also works. Email or an online form is easier but harder to prove if there is a dispute.

Message in Spanish

Asunto: Aviso de no renovación de la póliza n.º [número de póliza]

[Ciudad], a [fecha de hoy]

A la atención de [nombre de la aseguradora] [Dirección de la aseguradora]

Estimados señores:

Yo, [nombre y apellidos], con [DNI / NIE / pasaporte] n.º [número], en mi condición de tomador del seguro, les comunico por la presente que no deseo renovar la póliza n.º [número de póliza], correspondiente a [tipo de seguro, por ejemplo: seguro de hogar] del inmueble situado en [dirección asegurada].

La póliza vence el [fecha de vencimiento]. Les ruego que no la renueven y que no emitan ningún recibo posterior a esa fecha.

Les pido también que me confirmen por escrito la recepción de este aviso y la fecha de finalización del contrato.

Atentamente,

[Firma] [Nombre y apellidos] [Teléfono y correo electrónico] [Dirección postal]

What the message says in English

I am the policyholder and I do not want to renew policy no. [number], which ends on [date]. Please do not renew it or issue any charge after that date. Please confirm in writing that you received this notice and the date the contract ends.

Before you send it

• Policy number and end date: Both are on your policy schedule (the "condiciones particulares"). Check them twice, because a wrong number can make the notice easy to dispute.
• Date: Write the real date you send it, and send it at least one month before the end date.
• Address: Use the insurer's address for notices in the policy documents. If you bought through a broker, send it to the insurer as well.
• Proof: Keep the burofax or post office receipt, the delivery confirmation and a signed copy of the text.
• Payments: If the insurer still charges you after the end date, send your proof to the insurer and ask for a refund.

Frequently asked questions

Does cancelling my policy stop the direct debit?

No, cancelling the policy does not by itself stop the direct debit, so you also need to tell your bank.

How long do I have to get money back for a direct debit I did not authorise?

You have 8 weeks from the debit to ask for a refund of a SEPA Core debit, with no questions asked. For a debit you never authorised, the limit is up to 13 months. Ask your bank as soon as you spot it.

Can I cancel my home policy after making a claim?

Not automatically, because the law gives neither side a general right to cancel after a claim. Many policy conditions do allow it, usually by notice of 15 days to 1 month, with a refund of the unused premium.

Do I get a refund if I do not renew my policy?

No, if you simply do not renew, the premium for the period just ended is kept because cover runs until expiry.