If you are a borrower, this is information that concerns you: it will soon be possible to save money on your credit insurance. VShow to go about it in practice. The details of Charlie Cailloux, legal counsel for Particular to particular and the PAP.fr website.
franceinfo: Explain this novelty to us Charlie, what gain can we expect?
Charlie Pebbles : Borrowers will be able, as of September 1, to change credit insurance at any time, i.e. cancel their current insurance to take out another one, which offers at least the same guarantees but which is cheaper.
The bearer of this new law, the deputy Patricia Lemoine, estimates that borrowers can save from 5,000 to 15,000 euros over the entire duration of their loan. This is not the first legislative attempt to liberalize credit insurance, there have been the Lagarde, Hamon, Sapin II laws, but in fact, three-quarters of the credit insurance market remains held by banks.
Can we remind you what this loan insurance consists of?
When you take out a home loan, the bank requires that you take out death and disability insurance (without this insurance, you will not have credit). This insurance is very important, since in the event of a major health problem, which prevents you from repaying your monthly payments, the insurance will reimburse the credit for you.
This insurance is very useful, it is not questioned; the problem is that the bank requires the borrower to take out his own insurance, in any case, it strongly encourages him! This is called group insurance. However, it turns out that it is often more economical to take out individual insurance.
So, group insurance, individual insurance, what’s the difference?
Group insurance, that of the bank therefore, is collective insurance that pools the risks of all its customers, borrowers whose profiles are low risk compensate for riskier borrowers.
Concretely, if you are young, in good health, non-smoker, your profile is low risk, group insurance will not be the most advantageous for you, it is better to take out individual insurance with a third-party insurer, which will only consider your own risks.
And so if I find cheaper insurance, I will be able to change as I want? the bank cannot refuse?
No legally, she cannot refuse, since the new insurance offers the same guarantees as the previous one. It is therefore necessary to obtain from the bank the information sheet on the borrower’s insurance, in order to seek on its side an individual insurance which is appropriate.
You can get help from a broker to find the best deal. We then inform the bank, which cannot oppose the change.