Cancel insurance in Portugal: denúncia, car sale, refunds

Quick answer

Unless agreed otherwise, a Portuguese policy runs for one year and renews automatically for another year. To stop the renewal, send a denúncia (notice of non-renewal): a written declaration sent at least 30 days before the renewal date (art. 115.º of the Regime Jurídico do Contrato de Seguro, RJCS, approved by DL n.º 72/2008), or 90 days for a policy with no fixed term or an initial term of five years or more. Make sure it arrives more than 30 days before: a late denúncia lets the policy renew for a year. Early termination generally gives a pro-rata refund, subject to statutory exceptions and any justified agreement on its calculation. No penalty may be charged for exercising a right to end the policy; life insurance, capitalisation operations and long-term sickness insurance follow separate rules (art. 107.º RJCS). A new policy can often be cancelled through livre resolução within 14 or 30 days. No registered letter is required.

This guide is for policyholders (tomadores do seguro) ending insurance with a Portuguese insurer. It is general information, not legal advice. Check your policy (apólice) and its specific terms (condições particulares) first. For phone, internet and gym contracts, see our guide to cancelling a contract in Portugal; for complaints about an insurer, see formal complaints in Portugal.

Find the renewal date and the notice period

Unless agreed otherwise, a policy lasts one year and renews automatically for further one-year periods; a policy with an initial term shorter or longer than one year does not renew automatically (arts. 40.º and 41.º RJCS). The renewal date is in the condições particulares and is usually the premium due date. The insurer sends the premium notice at least 30 days before the due date (art. 60.º RJCS), which is about when your denúncia must already be on its way: do not wait for that notice.

Art. 115.º RJCS says the denúncia is “sent” at least 30 days before the renewal date, but a declaration generally takes effect when it reaches the recipient (artigo 224.º do Código Civil), and whether the 30 days count from sending or receipt is not settled. Make sure the insurer receives your letter more than 30 days before, and keep proof of delivery. The policy may give you more favourable terms, never worse ones (art. 13.º RJCS).

Send a denúncia before the renewal

No reason is needed to stop an auto-renewing policy (art. 112.º RJCS). A cheaper offer elsewhere is not just cause to leave mid-term, according to the ASF (Autoridade de Supervisão de Seguros e Fundos de Pensões, the insurance supervisor), but you and the insurer can agree to end a policy at any time (art. 111.º RJCS). Arrange new cover before the old one ends: car liability insurance is compulsory, and in a building divided into flats, fire insurance is compulsory for each flat and the common parts (art. 1429.º CC). If a health policy ends without replacement, the insurer still pays, for two years and up to the remaining capital, for an illness that appeared during the contract, provided you report it within 30 days of the end (art. 217.º RJCS).

The example gives the policy number and type, the renewal date and the legal basis, and asks for confirmation. Add your full name, address and NIF (Portuguese tax number), the insurer’s address from the policy and, for a car policy, the registration number. Replace every placeholder.

Assunto: Denúncia do contrato de seguro — apólice n.º [número da apólice]

Exmos. Senhores,

Eu, [Nome completo], NIF [NIF], na qualidade de tomador(a) do seguro [tipo de seguro, por exemplo seguro automóvel ou multirriscos habitação] titulado pela apólice n.º [número da apólice][, relativo ao veículo com a matrícula [matrícula]], venho, nos termos dos artigos 112.º e 115.º do Regime Jurídico do Contrato de Seguro, aprovado pelo Decreto-Lei n.º 72/2008, de 16 de abril, denunciar o referido contrato, para obviar à sua prorrogação, com efeitos no termo da anuidade em curso, em [data de termo da anuidade em curso].

Solicito que me confirmem por escrito a receção desta comunicação e a data de cessação do contrato, e que não efetuem qualquer cobrança, incluindo por débito direto, relativa a períodos posteriores a essa data.

[Para seguros automóveis: Solicito ainda a emissão da declaração de historial de sinistros, nos termos do artigo 20.º do Decreto-Lei n.º 291/2007.]

Com os melhores cumprimentos, [Nome completo] [Morada]

Not paying is not cancelling

Except for life insurance, an unpaid renewal premium stops the renewal (art. 61.º RJCS), but the premium for any period already covered stays due, with interest (art. 57.º RJCS). Cancelling the direct debit does not end the policy either. A written denúncia is the clear way out.

Changing your mind: livre resolução

A policyholder who is a natural person can cancel without giving reasons (art. 118.º RJCS): within 30 days for life, personal-accident and health policies of six months or more, and within 14 days for other policies concluded at a distance. The period runs from receipt of the policy, or from the contract date if you already had all the policy information on paper or another durable medium. Group-policy members are excluded from the 30-day right for life, personal-accident and health insurance. For distance contracts, the right does not apply to policies lasting less than one month or to travel or baggage insurance. The notice must be in writing, on paper or another durable medium. The insurer may keep the premium for the time covered and some costs, but for a distance contract nothing, unless cover started during the period at your request. The RJCS does not say whether sending it by the last day is enough, so make sure it arrives in time. The example names the policy and the date you received it, and asks for the refund.

Assunto: Livre resolução do contrato de seguro — apólice n.º [número da apólice]

Exmos. Senhores,

Eu, [Nome completo], NIF [NIF], na qualidade de tomador(a) do seguro [tipo de seguro] titulado pela apólice n.º [número da apólice], celebrado em [data de celebração] e cuja apólice recebi em [data de receção da apólice], venho, nos termos do artigo 118.º do Regime Jurídico do Contrato de Seguro, aprovado pelo Decreto-Lei n.º 72/2008, de 16 de abril, exercer o direito de livre resolução do referido contrato.

Solicito a devolução do prémio pago, deduzidos apenas os montantes que a lei permite reter, por transferência para a conta com o IBAN [IBAN], bem como a confirmação escrita da cessação do contrato.

Com os melhores cumprimentos, [Nome completo] [Morada]

Selling your car or home

Car liability insurance does not pass to the buyer: it ends at 24:00 on the day of sale, unless you use it to insure another vehicle. Tell the insurer in writing within 24 hours; otherwise it can claim compensation equal to the premium for the remaining policy year (art. 21.º DL n.º 291/2007). A posted letter is unsuitable for this 24-hour deadline, so use the insurer’s client area, e-mail or branch. The insurer must issue your claims history (declaração de historial de sinistros) within 15 days of your request (art. 20.º DL n.º 291/2007). For a home sale, whether the policy lapses or can be ended for just cause is debatable, according to the ASF: write to the insurer with the deed date and ask for the pro-rata refund (art. 107.º RJCS).

Mortgage-linked insurance

You can replace insurance that guarantees a loan with a new policy from another insurer, with the same guarantee conditions, without the lender’s consent (art. 97.º RJCS), and the lender must accept equivalent cover (art. 11.º DL n.º 74-A/2017). Since 2 May 2026, the life cover a lender requires may only be death cover, and you may offer another guarantee instead (Lei n.º 14/2026). The old policy usually stays bound to its annual term unless there is just cause (DL n.º 222/2009), so the denúncia notice still applies. A spread discount tied to the bank’s insurance may be lost if the loan contract says so; the new wording on this point is unclear. Get the new policy accepted by the bank before ending the old one.

If the insurer does not cooperate

Complain to the insurer first; according to the ASF, it replies within 20 working days, or 30 if complex. Then you can turn to the insurer’s customer ombudsman (provedor do cliente), complain to the ASF or use the Livro de Reclamações (official complaints book). The ASF can sanction breaches but cannot impose a solution in your case. CIMPAS, the insurance mediation and arbitration centre, handles disputes over policies; according to the ASF, an insurer must accept arbitration of a consumer dispute up to €5,000 if you choose it. Julgados de Paz (small-claims courts) hear claims up to €15,000. See our guide to formal complaints in Portugal.

Post your letter and keep evidence

If you prefer post, upload your final PDF or write the letter in MaisonMail. Use the insurer’s address from your policy. The recipient address determines the destination; available services, estimated delivery and the final price appear before payment. Your denúncia must reach the insurer in time, so allow for printing and delivery. The law asks for writing, not a carta registada com aviso de receção (registered letter with acknowledgement of receipt); MaisonMail sends standard and tracked letters to Portugal, not registered post. Because tracking shows that an item arrived, not what the envelope contained, also send the same text through the insurer’s client area or by e-mail, and keep a copy of the exact letter.