Most banks require customers to take out loan insurance before they can grant them credit. They usually offer a contract to a counterparty as a matter of routine. However, competitors' offers are often more attractive. Is it possible to take out insurance outside the bank?
The benefits of taking out loan insurance outside the bank
Banks usually work with insurance companies that offer mutual contracts. In this way, the rates are standardised. As a result, the guarantees are standardised and not suited for everyone. Even if you are a risk-free profile, you would have to pay a rather high premium. In a nutshell, this is certainly not the best solution.
Nowadays, competing organisations offer tailor-made contracts that are perfectly adapted to the profile and expectations of the subscriber. In addition, in most cases, the price is more attractive. You can therefore make substantial savings in the long term.
Taking out an insurance policy outside your bank: what conditions should be met?
Following the entry into force of the Lagarde law, it is now possible to take out a competitive loan insurance policy. However, the guarantees must be equivalent. This means that you must choose a level of cover identical to that of the bank, otherwise the application will not be accepted.
In the case of current loans, thanks to the Hamon and Bourquin laws, it is possible to change insurance at any time after the anniversary of the loan. Therefore, if the borrower feels that the rates are excessive, he or she can freely negotiate the offers in order to benefit from a more advantageous deal.
The procedures for taking out non-bank insurance
If you plan to delegate your insurance, you should inform your bank as soon as possible by sending a registered letter with acknowledgement of receipt. You must also enclose a letter of cancellation and a new insurance contract. The necessary documents will be included in your loan application. It should be noted that refusal is not acceptable without a reason.
To find the best offer, you can use an online comparator, request several quotes from different providers or use an insurance broker. In any case, insurance represents around 30% of the loan. So, by choosing a more attractive offer, you can considerably reduce the total cost of the loan.