How to save by switching insurance

Since September 1st, with the Lemoine law, you can change borrower insurance whenever you want, without waiting for the anniversary date of the contract. You can make real savings: 500 euros per year on average for a couple, but it is even more obvious if you are young and at the beginning of a loan.

Maël Bernier, spokesman for Meilleurstaux.com, gives the example of a 33-year-old couple who borrowed 300,000 euros over 25 years ago two years ago. The couple paid 112 euros a month for mortgage insurance. By renegotiating today, with similar guarantees, similar coverage, the couple pays 56 euros a month. It is twice lesswhich allows them to save 15,600 euros over the course of their loan.

But before you take the plunge, RTL gives you some advice before switching borrowers’ insurance.

Check guarantees

Firstly, the borrower’s insurance, which is currently taken out by 7 million French people, is an insurance policy on your loan that covers death, invalidity and temporary incapacity for work. If there is an error, the insurance covers the monthly payment of the loan. If you are 100% covered, she takes it all, and if you are 50%, she covers half. So when you renegotiate, check that it is the same guarantees with the other insurance companybut it is normal.

Do / don’t

Second thing: you will gain more by switching if you are under 50 and if you are at the start of your loan, in the first third of your loan, because the more you have to pay, the bigger the savings…

The advantage now, with the Lemoine Act, is that you can renegotiate your lender’s insurance every time. It is no longer worth waiting for an anniversary date. And you no longer need to fill in a health questionnaire if you borrow less than 200,000 euros for a single person, or less than 400,000 euros for a couple.
But there is still things that can help you: to be a smoker. You are no longer considered a smoker if you stopped more than two years ago. It raises the insurance premium for being a smoker, but never lie! Experts can refuse to compensate you during an illness if they find you in a photo with a cigarette on social networks, which is less than two years old.

Another thing to know: It’s always cheaper to switch, but you can pay a little more depending on the profession: are you a hairdresser because you stand all the time, it’s a risky profession, or if you’re a roofer, you climb on roofs , or even if you are a policeman. You pay more than a manager in an office.

Your bank cannot prevent you from leaving

Sometimes your adviser will tell you that your new contract is really bad, that it is not the same guarantees, when they are strictly the same with the new insurance company. Having said that, now, because there is competition, the banks try, and the contracts are better and cheaper, from the start because they know you can leave at any time.

Anyway, if she makes you unhappy, the law obliges the bank to justify its refusal, and she even risks fines if she won’t let you go.

Don’t hesitate to renegotiate all your other contracts

As Olivier Gayraud, lawyer at the CLCV consumer association, rightly says, “loyalty never pays in insurance”. Car and health insurance premiums increased by 25% in ten years, insurance 35% multi-risk in the home So if you let the surges pass quietly, without moving, you lose. The premium increases, and in addition you take the risk of no longer being insured for what is necessary.

Review your warranties

If your car is, for example, ten years old, it may no longer pay to insure it against all risks, but just third-party insurance, with glass breakage cover. According to comparator assurland.com, the all-risk formula cost an average of €643/year last year, compared to €559/year for the third-party formula + glass breakage. By switching, this saves 84 euros. And “if you are 50 years old and have mutual insurance that includes maternity costs, it is useless and expensive”, clarifies Delphine Bardou, from réassurez-moi.com.

You have to ask yourself the question of switching every two or three years

The consumer association UFC Que Choisir notes that insurance companies rely on the inertia of their customers, who never touch their contract, to reserve promotions for new participants and therefore for new customers. The magazine 60 million consumers in its October-November 2022 special issue, entitled “Find purchasing power”, specifies that by renegotiating your contracts, you can 600 euro savingand 1,000 euros by grouping your loans.

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