Since September 1, 2022, the Lemoine law allows everyone to change borrower insurance at any time. On average, the savings are estimated at 15,000 euros.
The second part of the law of February 28, 2022 for fairer, simpler and more transparent access to the borrower insurance market, also known as the Lemoine law, entered into force on September 1, 2022. This law allows each borrower to change their loan insurance at any time, subject to certain conditions.
And the least we can say is that the latter responded presently. We are +300% of requests compared to an average month, assures Astrid Cousin, communication manager of the comparator Magnolia.fr. There is currently a real craze of borrowers.
Home loan insurance: what changes for borrowers on September 1
An observation shared by milie Ruben, communication manager at Scurimut: Since September 1, we have been around 40% more requests for quotes compared to our average over the year. And most people who search find interesting solutions to change borrower insurance.
Thousands of euros in savings
While some market players feared an increase in prices, in particular because of the abolition of the health questionnaire for certain loans (less than 200,000 euros per head with repayment before the borrower’s 60th birthday)the Magnolia.fr site estimates that prices stabilized in September, with increases of between 5% and 25%, but nevertheless concentrated on contracts without a medical questionnaire.
Other insurers, the image of Macif, have chosen not to increase their prices. They prefer not to be pessimistic and tell themselves that the portfolio will not change that much, while remaining attentive to market developments, explains milie Ruben. As long as there is no significant increase in claims, there is no reason to increase rates. Especially since contracts without a health questionnaire remain in the minority for the moment.
save up to 70% on your borrower insurance
One thing is certain, the savings made can be substantial. On average, a couple in their thirties with a standard insurance contract with a bank can save 500 euros per year by going from 1000 euros to 500 euros with an alternative, i.e. a saving of 10,000 euros for a 20-year loan, details milie Ruben. In terms of purchasing power today, it’s a very good lever. Everyone has an interest in making an estimate and looking for solutions.
Examples of savings achieved through a change in borrower insurance*
For a 29-year-old non-smoking single executive, having borrowed 220,000 euros at 1.80% over 20 years, and 100% death/incapacity/invalidity insurance. In the case of this borrower, the insurance offered by his bank is 11,880 euros. However, by looking for the best alternative proposal, the latter can go down to 2531 euros, for the same guarantees, i.e. a saving of 9349 euros.
And for a couple of executives, non-smokers, 50 years old, insured with the same guarantees and having also borrowed 220,000 euros at 1.80% over 20 years, the savings are 20,876 eurosthanks to an alternative contract of 24,004 euros instead of the 44,880 euros to be paid for a contract with the lending bank.
*Data provided by Scurimut, on the average of the bank rates noted on their site Switchinsur.co.uk.
However, some have less interest in changing borrower insurance. This is the case, for example, of people whose state of health has deteriorated between the time when they took out their borrower’s insurance and the time when they wish to change it. The savings will also necessarily be greater if you switch from a banking group contract to an alternative contract. If you have already gone through an alternative insurer when signing your mortgage, there is less interest, the savings have almost already been madeexplains milie Ruben, who nevertheless advises everyone to make a free estimate.
Finally, it is better to do it as soon as possible. The less you wait, the greater the savings, confirms Astrid Cousin. A borrower whose loan is nearing maturity will necessarily save less. But nothing prevents him from making an estimate.
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