Can my insurer put the price up or drop me for making a claim?
Not in the middle of the period you have paid for, because the law does not allow the insurer to terminate the contract on the ground that you have had a claim. At renewal, generally yes. It can put the price up or refuse to renew your policy, even if the reason is the claim, but it must tell you in writing at least two months before the renewal date. If it gives notice later, it should not be able to apply the change at that renewal. You, in turn, can decide not to renew by giving one month's notice.
Alburquerque Abogados
José Manuel AlburquerqueWhat the insurer can do
- Raise the premium for the following year, giving you written notice two months before the renewal date.
- Refuse to renew, with the same written notice.
- In car insurance, apply the surcharges provided for in the policy for at-fault claims.
What it cannot do
- Terminate the contract mid-term simply because you made a claim. It can only do so on the grounds set out in the law, such as having concealed information when taking out the policy or having increased the risk without reporting it.
- Simply rely on a clause allowing it to cancel the policy after each claim. The law does not provide for this and such a clause would, at the very least, have to be highlighted and signed separately.
- Stop renewing your funeral or long-term care insurance. With these policies, only you can refuse renewal.
What you can do
- Compare prices as soon as you receive the renewal notice.
- If you do not accept the increase, give written notice that you are not renewing, at least one month before the renewal date.
- For car insurance, ask your insurer for the claims history certificate for the last five years, which it must give you within fifteen working days and which the new insurance company will ask you for.
- If no insurance company is willing to insure your car, ask two insurers to tell you in writing that they will not accept it and take those replies to the “Consorcio de Compensación de Seguros”, Spain's state insurance compensation fund, which in that case provides your compulsory motor insurance.
This answer is provided for educational purposes and offers initial guidance on the question raised. Every matter has its own circumstances and nuances that require individual assessment. For that reason, before taking decisions with significant consequences, it is advisable to consult a professional and not to rely solely on this information. Personalised advice makes it possible to apply these explanations to the specific case and to assess the options available with greater certainty.