If the fact of changing telephone operator or gas provider has become commonplace, the French are still reluctant to change insurer for their home insurance or borrower insurance contract. And sometimes, they are not even aware of having the right to leave! However, significant savings can be made …
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Insurance: why play on competition?
The French are used to comparing the prices of many products and services before buying or subscribing to them, in order to get the best deal. Ditto for housing, the purchase price of which is generally fiercely negotiated. However, few are inclined to do the same for insurance contracts.
It’s a shame, because the prices are extremely variable depending on the company, including similar guarantees. For a home or an identical loan contract, the premiums can change significantly. Hence the importance of play the competition …
Especially since, since 2015, you have the possibility of changing home insurance at any time, after one year of engagement, without waiting for the anniversary date. Better yet: you don’t have to do anything, the new insurer takes care of everything.
And, in 2018, the possibilities of changing borrower insurance were also enhanced. You can renegotiate the insurance of your mortgage with unprecedented ease. This is really worth it for long loans involving large sums: the potential savings represent thousands of euros over the total duration of the loan!
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How to change borrower insurance?
If your bank can force you to take out insurance on the loan to obtain it, it cannot on the other hand force you to take out its “home insurance”. You have complete freedom of choice concerning the insurer, provided of course that you take out borrower insurance with equivalent guarantees.
In addition, you have the option of canceling your current borrower insurance, with the consent of your bank. During the first year of the contract, termination can take place at any time, provided that the procedure is carried out by registered mail no later than 15 days before the anniversary date of the contract.
After the first year, you also keep the option to cancel loan insurance, but annually this time. Knowing that the process must be initiated by registered letter at least 2 months before the anniversary date of the contract. Always by presenting a borrower insurance with equivalent guarantees.
How to change home insurance?
During the first year, you must justify a change in situation to be able to change home insurance, so that your insurer can offer you a new, more appropriate premium. You can then refuse it, and change company.
If your housing contract is longer than one year, however, you can terminate it at any time without having to provide reasons. All you need to do is find an offer that suits you better, and subscribe to this new contract. This change is completely free, without penalties.
In both cases, you can entrust the new insurer with the task of terminating your old contract. He will take care of everything for you, and will take care of matching the two contracts to guarantee the continuity of your protection.
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More practical advice on the same topic:
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