Did you cancel your car or home insurance due to sale and want to know if you have the right to a refund of the unused insurance premium? In this article, we tell you when you can claim the return of the unconsumed premium from the insurance.
It is very common for customers to consult our insurance brokers in Tenerife and Las Palmas, if the insurer is obliged to carry out the return of the unconsumed insurance premium, when the insured property is sold before the end of the contract. This usually happens with car insurance o home insurance that are sold before the expiration of the insurance contract.
Can I claim a refund for the insurance premium not used in the Canary Islands?
The most common practice of insurance companies in the Canary Islands is to keep the unconsumed premium in deposit for a period of time. Thus, the insured can use this amount for new insurance. On the other hand, other insurers refund the amount not consumed, generating a return of premium. These actions may be regulated in the clauses of the policy, or be an internal operating process of the insurer, motivated mainly by commercial reasons.
The two previous options represent a solution to this problem for the client, and in one way or another the part of the premium not consumed is respected. Yes OK, there are insurers that reject the return or reservation of the unconsumed premium. Depending on the amount, the client may consider their rights violated.
Is the insurer obliged to return the unconsumed premium?
The criterion of the General Directorate of Insurance is that, if there is no clause in the contract that specifies how the company acts in these cases, the insurer can consider that the premium is indivisible and keep said amount. This criterion is based on the fact that the insurer assumes the total risk during the entire duration of the insurance policy, and therefore corresponds to the entire premium for the contracted period. Despite this, for commercial reasons, sometimes the companies tend to pay back the unused premium, or at least reserve the premium for a future contract.
If you have problems with your insurer and need advice on matters of this type, Do not hesitate to call us! We will find a solution to your problem. We can manage any claim or incident with insurance companies in the Canary Islands.
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