In an economic context where every cent counts, it is essential to think about ways to reduce expenses related to borrower’s insurance. This cost, often overlooked by borrowers, can represent a significant part of the total budget for a mortgage loan. Therefore, optimizing choices in this area becomes a priority. In this article, we will offer practical tips to lighten your borrower’s insurance bill while maintaining a level of coverage suited to your needs.
- The criteria that influence the price of insurance
- Negotiate with your bank: what you can achieve
- Choose suitable coverage without paying for the superfluous
- How to change insurance during the loan term?
The criteria that influence the price of insurance
When it comes to setting the rate for borrower’s insurance, several factors come into play. Here is a list of those that can make a difference in the amount of the premium:
- Age: Young borrowers often benefit from more advantageous rates due to a lower health risk.
- Health status: Medical history may lead to surcharges.
- Profession: Certain professions, such as those in construction or security, are considered riskier, which affects the rate.
- Type of coverage: Comprehensive coverage including death, disability, and loss of employment will be more expensive than limited insurance.
- Loan duration: The longer the duration, the more the overall premium may increase.
Each of these elements can cause the insurance premium to fluctuate. If you are a young, healthy individual with a moderately risky profession, you could, for example, make significant savings. Insurers such as Axa, Allianz, or Groupama often offer more favorable conditions to those presenting a low “risk.”
| Criterion | Impact on the rate |
|---|---|
| Age | lower rates for young people |
| Health status | allows for surcharges |
| Profession | increase for risky sectors |
| Type of coverage | increase for comprehensive protection |
| Loan duration | higher rates in the long term |
Negotiate with your bank: what you can achieve
Often, banks impose a default insurance company, and it may be tempting to accept without asking questions. However, it is possible to initiate a discussion with your advisor to negotiate more advantageous conditions. Here are some ideas to explore:
- Rate reduction: Present your solid financial dossier to convince them of your ability to lower the cost.
- Adjustment of guarantees: Analyze the guarantees included to remove those that don’t concern you.
- Comparison of offers: Look at what other insurers like Sogecap or Boursorama offer and use these elements to apply pressure.
- Cancellation conditions: Negotiate for greater flexibility to change the contract in the future if needed.
This proactive approach can not only help you obtain more competitive rates but also provide guarantees tailored to your personal situation. Indeed, a personalized approach with banks can offer significant long-term advantages.
Choose suitable coverage without paying for the superfluous
An oversized insurance contract can quickly increase your bill. Here are some tips to avoid paying unnecessarily:
- Assess your real needs: Sometimes, excess guarantees are unnecessary. A low-risk profession may justify limited options.
- Deductible level: Choosing a higher deductible can lower your premium if you have savings to withstand a period of inactivity.
- Check exclusions: Ensure that restrictive clauses do not hinder your coverage.
- Use a broker: Consulting a professional such as Lassurance-emprunteur.fr could allow you to obtain better value for money.
| Strategy | Potential savings |
|---|---|
| Reduce coverage | 30% on the premium |
| Adjust the deductible | 20% on the premium |
| Check exclusions | Avoid hidden fees |
| Use a broker | 10% on average on the total cost |
How to change insurance during the loan term?
With the Lemoine law dating from 2022, it is now possible to change your borrower’s insurance at any time, without fees or penalties. This offers you valuable flexibility to benefit from better offers. Here’s how to proceed:
- Compare offers: Before taking any steps, take the time to analyze the different proposals available on the market. Consider players like Maaf or Carte Blanche.
- Check guarantee equivalence: The new insurance must provide protections similar to the old one.
- Send a cancellation request: Formulate your request to your current insurer to formalize the change. Also, take into account the 10-day acceptance period for your bank.
| Step | Timeframe |
|---|---|
| Compare and choose | Variable depending on the offer |
| Cancellation request | Immediate |
| Bank response time | 10 days |
Adopting a smart strategy for managing your borrower’s insurance premium is an essential process. Whether through negotiation with your bank, optimizing your coverage, or even changing contracts, several levers are available to reduce your expenses. In 2025, it’s best to be well-informed and know how to play on these different fronts!
FAQ
1. What is borrower’s insurance?
Borrower’s insurance is a contract often taken out in connection with a mortgage, which covers the risk of the borrower defaulting on repayments.
2. Can you change borrower’s insurance at any time?
Yes, the Lemoine law allows changing insurers at any time, without fees or penalties.
3. How to reduce the cost of borrower’s insurance?
It is possible to reduce the cost of borrower’s insurance by comparing offers, negotiating with your bank, and choosing coverage that fits your needs.
4. What guarantees should be included in a borrower’s insurance contract?
The guarantees depend on the borrower’s needs, but typically, protections related to death, incapacity to work, and loss of employment are the most common.
5. Do young people have access to preferential rates?
Generally, yes, young borrowers have access to more competitive rates due to their often better health and lower associated risks with their profile.
