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Affordability: How to manage your insurance budget in 2023?
Insurance premiums increase every year, regardless of the area of protection (health, borrower, home, car). Although it is difficult to get rid of this inflation, it is possible to minimize it by enabling competition. The rules allow you to easily change contracts to save money. Magnolia.fr reviews tips to control your insurance budget. Increase in insurance rates in 2023 Insurance rates are no exception in this era of high inflation where everything is rising. According to Facts & Figures, auto insurance premiums are expected to increase by an average of 3% to 5% in 2023, largely due to increases in the cost of parts and labor. Average growth in home insurance shows the same range, and as in recent years, it is climate disasters that weigh on insurers’ balance sheets. Household purchasing power is taking another hit after a sharp increase in mutual health insurance prices, estimated between 3% and 5% in 2023, and additional costs resulting from rising health care costs and reform. organisms. There is another mandatory insurance that mortgage holders must pay each month: borrower’s insurance. After Lemoine’s law, rates increase for new contracts. The average increase is significant, +20%, but when it comes to other coverages, the solution to paying less is to compete. Mortgage loan insurance is the subject of a separate section to be read below, given its regulatory framework. Reducing your insurance budget Remember that car insurance is mandatory for all vehicles and home insurance is mandatory for all renters. These mandatory expenses have a heavy impact on purchasing power, but if they cannot be avoided, it is possible to reduce the bill. It’s not about going without insurance to save money, it’s about analyzing your needs. Car insurance Choose a formula adapted to your use. If you are a light rider, opt for car insurance that works according to the number of kilometers you travel in a year. Potential savings are between 10% and 40% compared to a classic contract. Some contracts (pay as you drive) require the installation of an electronic device in your car, which saves you from calculating the number of annual kilometers. Third-party car insurance, which is less extensive than all-risk insurance, also allows smaller drivers to save money. Home insurance Here again, assessing needs makes it possible to control home insurance costs. Provide accommodation and inform the insurer to pay less. If you are a renter, opt out of insuring the outdoor areas of your residence, as it is the owner’s responsibility to maintain them. Check the liability coverage that can be repeated with school insurance or GAV (Life Accidental Guarantee) and consider the deductible amount for the amount not covered by the insurance in the event of a claim. The lower the deductible, the higher the premium. It is advisable to arbitrage here as the significant deductible to minimize the contribution will force you to bear more of the cost of the catastrophe. Do not forget to inform the insurer of any changes related to housing, even family and profession, so that the insurance premium can be adjusted according to your current situation. Mutuelle santé The same approach for supplementary health coverage: assessing your needs allows you to be protected as precisely as possible. Of course, unexpected (illness, accident) loss is difficult to estimate, but actions and health products based on your consumption, as well as actions and equipment planned for the year (cataract surgery, refractive surgery, hearing). assistance), you can choose the appropriate level for each coverage (for example, reimbursement of hospitalization) Always choose a solidarity and liability mutual insurance company according to exact specifications. The regulations mandate that this type of contract (95% of additional health insurance) pay 100% of the optical, dental and audiology costs after Amelie’s intervention in line with the 100% Health reform. Change insurance at any time If you realize that your car, home or health insurance policy is no longer suitable for your needs, or if you think you are paying too much, change it! The law allows you to cancel the contract at any time after one year of subscription. For each insurance area, use the special online comparator to access the best offers on the market and choose the contract that suits your budget and situation. The rules make it easy to switch from one contract to another, as you can ask the new insurer to handle the cancellation/underwriting procedures on your behalf, allowing you to match the cancellation date of the old contract. effective date of the new one. Be careful not to choose your insurer based on price alone. Entry-level or very low-cost contracts hide high deductibles on auto and home insurance, as well as low reimbursement ceilings or very limited coverage guarantees. By using a mutual health comparator, you can save more than €200 a year with similar guarantees. The exercise is more interesting for seniors, who pay the most for supplemental health insurance. Magnolia.fr compares more than 200 high-quality health insurance offers for you free of charge, and thanks to our team of experts, you are supported every step of the way. Lemoine’s Law in Borrower’s Insurance If you’re paying off your mortgage, you’ll definitely be covered by borrower’s insurance. This principal protection costs an average of one-third of the total cost of your loan, second only to interest. Whether you have purchased bank insurance or foreign insurance, you can check whether you are paying more than what the market offers. Comparing your home loan insurance with current contracts allows you to choose a more competitive offer with equivalent guarantees. Unlike auto, home and health insurance, you don’t have to wait for the subscription year to change your formula. Thanks to Lemoine’s law, which took effect on June 1, 2022, you can cancel an existing contract at any time one day after signing the loan offer. Launching the competition in 2023 allows you to pay less for your loan agreement. Savings can amount to hundreds or even thousands of euros over the remaining term of your mortgage. The increase in the borrower’s insurance rates is due to the removal of the health inquiry for loans of less than 200,000 euros paid before the insured turns 60 years old. This measure, introduced by Lemoine’s law, forces insurers to combine offers in this segment, which increases prices. Borrowing households understand the financial stakes of Lemoine’s law: From September 1, 2022, when Lemoine’s law applies to all borrowers, we are witnessing a boom in mortgage loan insurance changes. Like these tens of thousands of borrowers, opt out of paying full price and switch credit insurance to protect your purchasing power.