The concept of return insurance is unknown to many users who have never heard of it before. At Euroteide Seguros, thanks to our almost 3 decades of experience in the insurance field, we help our clients every day to find answers to these concepts for which they need expert advice.
We are prepared to answer all your questions, so we will try to explain clearly and concisely. what is an insurance return below.
What is return on insurance
What is return on insuranceThe insurance return is the amount that an insurance company has the obligation to return to the insured if, due to some external cause, there has been a change in risk. To show it more easily, we are going to show an example: if you sell your vehicle and the policy has not yet ended, you will be able to claim the part of the premium that you have overpaid.
And not only does the extortion take place in car insurance, but it occurs in other types of insurance. But, nevertheless, it is not usual for insurance companies to return the insurance to clients because they try to save that amount paid in excess as a deposit when contracting other insurance with the company.
Current legislation regulates different cases in which the insured can claim part or all of the amount paid to the insurance company. The most common are:
- When deregistering a car insured in the DGT due to accident or irreversible deterioration.
- If you reach a certain age and your driver's license renewal is not approved.
- When you sell your car and you are no longer the owner of the vehicle insurance.
- If you want to cancel a life insurance before the 30-day contract ends.
- En life insurances, if your company terminates you because it will be responsible for paying the policy.
- In accident insurance, if the insured dies from some type of illness.
La Insurance Contract Law It also establishes different cases in which the return of the insurance can be carried out when an extinction or risk reduction occurs. For example, the return of mortgage life insurance when you sell the property before finalizing the mortgage payment and you had previously paid the premium.
Also in the case of insurance that is linked to loans, when objects that are insured are sold (works of art, houses, cars...) or when the risk of the insured has decreased, but the insurance company does not agree to reduce the amount of the insurance. premium that the customer is obligated to pay. In this type of case, the policyholder can request the return of the insurance.
How long does it take to return the return
If you meet some of the conditions that we have just shown and you want to request the return of your insurance from the insurance company, you must take into account that there are established deadlines for it to become effective once approved, which are the following :
- If you have contracted life insurance and want the return, you must request it before the first 30 days from the effective date of the contract. The company will return the part of the premium that you have paid and not enjoyed.
- If you want to make the refund in any other type of insurance, the term you have to request that the premium be returned is 14 days.
You must remember that it is not something optional that the insurance company can grant you or not, but that it is obliged to return the premium if the risk of the insured decreases by the law in force. In any case, each insurer has a series of conditions or processes that you must consult before requesting the return of the insurance.
When is the return of the insurance premium due?
When we talk about the return of insurance, it is important to take into account when the return of the premium corresponds and when it does not. There are cases in which you can get a full refund of it and others in which a partial refund of the amount you have paid will be produced.
The insurance premium must have been paid in full, either in a payment or in the terms agreed between the policyholder and the company, to have the possibility of requesting the return of an insurance. It is something that you should take into account, although you can always consult the conditions offered by the company itself in this regard.
In the case of life and mortgage insurance, it must be taken into account that if you cancel the mortgage and you have contracted life insurance linked to it, this is also cancelled. Therefore, if you have paid that premium in full and in a single payment in which you have paid in advance all the years of insurance, the company has the obligation to return the proportional part of the years in which you will no longer need the insurance because the mortgage has been cancelled.
The insured, in this type of case, has the right to receive the return of the life and mortgage insurance from the moment the loan is cancelled. Is a right that policyholders have and that many are unaware of because they have never heard of this concept before.
As from Euroteide Seguros we have clarified the difference between continent and content in home insurance We also hope that we have resolved your doubts about the return of insurance. If you believe that you have the right to a refund of an insurance that you have contracted and you need help, do not hesitate to contact our team to find a professional solution.
En Euroteide Insurance We have a complete team of specialized advisors who can carry out a complete study of your case and guide you on the steps you must take to obtain a partial or total refund of your insurance premium.
