The “right to cancel an insurance policy” allows clients in Portugal to cancel a newly contracted insurance policy without penalties, as long as it is done within 30 days of receiving the policy. This period gives clients the chance to review the contract and ensure it meets their needs and expectations. If it doesn’t, they have the option to withdraw. Let’s see how it works in practice:
Practical Examples of Canceling Insurance Policies in Portugal
- Change of Mind: Imagine Pedro, a young adult who just bought his first car and contracted car insurance. A few days later, he finds another insurance provider with the same coverage but at a better price. Pedro can use his cancellation rights to withdraw from the first policy within the 30-day period, without any penalty.
- Incomplete or Misleading Information: Joana takes out a health insurance policy, but the agent fails to mention a high deductible on some coverages. When Joana receives the policy and reviews the terms, she notices the deductible, which was not disclosed initially. She can use her right to cancel the insurance due to missing important information.
- Change in Personal Circumstances: Paulo, living in Lisbon, rents an apartment and buys home insurance. The next day, he receives an excellent job offer in Madeira, prompting him to move and cancel his rental contract within the 30-day window. Since he no longer needs the insurance, he can cancel the policy without penalty.
- Dissatisfaction with the Coverage: Sofia contracts annual health insurance for a master’s program in the United States. Upon receiving the policy, she realizes the coverage is more limited than initially promised. Since she is within the 30-day period, Sofia decides to cancel the insurance and find a product that better meets her needs.
This right protects clients from being “stuck” with a contract that doesn’t meet their expectations. The right to cancel “direito de renuncia” is upheld under Portuguese insurance law.
Exceptions to Canceling Insurance in Portugal
However, some cases don’t allow for policy cancellation:
- If the policyholder is a corporate entity
- If the contract duration is six months or less
- For group insurance policies
Why Choose C1 Broker for Your Insurance Needs
At C1 Broker, we always put the client first, offering personalized insurance advisory services. Our goal is to understand your needs and find a solution that fits both your requirements and budget. With our dedicated, specialized team, we ensure you receive all the information needed to make a safe, informed choice. Trust us to find the ideal policy, one that truly meets your expectations with transparency and confidence.
