Why and how to change loan insurance?

You may not know it, but you can change loan insurance at any time during your loan. If it is sometimes unknown to borrowers, this practice nevertheless has a number of advantages. Do you feel a little lost? Discover all our answers and solutions to save money.

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You have heard of the possibility of changing loan insurance but you do not dare to take the steps or do not know how to go about it. Here is why and how to change loan insurance.

Why change my loan insurance?

While the economic situation of recent years has enabled most borrowers to benefit from relatively low borrowing rates, this has not been without consideration: banks more than offset this decline with an increase in the cost of loan insurance.

On the other hand, insurance organizations have lowered their prices for the most part in order to be able to face increased competition in the sector.

To simplify their administrative procedures, many borrowers generally decide to take out their loan insurance with the bank that granted them their loan. However, going through another intermediary for its loan insurance can allow you to make significant savings. To be sure, it is better to compare the conditions and prices of your current insurance with quotes from other specialized providers.

Thus, for a lower rate than the one you currently pay, you will also be able to benefit from more advantageous guarantees (more information here: Guideducredit.com). Who says better ?

How do I change my loan insurance?

If it was previously necessary to respect a notice around the anniversary date of the loan, you can now modify your borrower insurance throughout the duration of your loan. This news is rather reassuring when we know that some borrowers choose to go into debt for more than 20 years. Indeed, with the forthcoming entry into force of the Lemoine law, you will be able to freely terminate your loan insurance to take out another one:

  • from 1er June 2022, for new loan insurance contracts;
  • from 1er September 2022, for loans in repayment.

However, this change of loan insurance can only be made under certain conditions: the new borrower insurance taken out must comply with the guarantees required by your former insurer at the time of taking out the old contract.

Changing my loan insurance, in practice

  • Step 1: I choose and take out new loan insurance that respects equivalent guarantees.
  • Step 2: I send my new insurance and my request for termination of my bank insurance to my bank.
  • Step 3: I receive an amendment to my loan with my new overall effective rate (insurance + contributions).
  • Step 4: I send the endorsement, dated and signed, back to my bank.

Changing loan insurance during the loan is not so difficult in the end. Legislation has evolved to further simplify the administrative procedures for borrowers. What are you waiting for to save money?

Article produced in partnership with the Credit Guide teams

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