In 2014, the government disrupted the insurance market thanks to the Hamon law on household consumption. French households now have the option of terminating their insurance contracts during the year to change insurance company . This new flexibility is a real revolution. Previously, consumers were required to wait for the annual anniversary date to initiate a possible termination process. So how can you use it wisely to reduce the cost of your contributions? And above all, is it possible to maintain optimal insurance coverage in the event of disasters?
The characteristics of the Hamon law or consumer law
Before the Hamon law, policyholders who wanted to change Auto or Home insurance company had to wait for the annual due date. In addition, the termination process required sending a letter with acknowledgment of receipt two months before this fateful date. Changing his insurance contract was therefore a real obstacle course. Often, consumers would send the termination request out of time, resulting in the termination being postponed until the following year.
The Hamon law simplifies the procedures for consumers . From now on, the transfer of his insurance contract is possible at any time of the year. The terms of termination are generally carried out by the new insurer. The insured person only gives his consent by signing the new contract. However, to come within the scope of this legislation, you must pay at least one year of seniority with your insurance organization.
Finally, in the event of a recent claim, it is strongly recommended to wait for the end of the processing procedure with the settlement of compensation before initiating a change in Auto or Home insurance.
Why is changing insurance an opportunity to reduce costs?
Most of the time, renegotiating insurance contracts generates a monthly gain for the household . Indeed, there is a strong competitiveness in the property insurance market. If the insured has been a member of the same insurance company for more than three years, then there is a good chance that competition will attract him thanks to attractive pricing conditions. In short, changing insurer regularly can be a way of making significant savings. The price difference is sometimes spectacular, the cost can decrease by 70%.
To reduce your insurance budget as much as possible, it is possible to take out a contract online . Thus, insurance brokers offer a dematerialized subscription at the best price.
Another tip for making the best choice is to use price comparison sites . Several sites such as Lesfurets.com or Lelynx.fr have specialized in this activity at the service of consumers. By using these sites, the consumer will be able to compare the guarantees offered by each contract and the annual price. Depending on the profile of the Internet user (his expectations in terms of insurance and the characteristics of his goods), the site will suggest several contracts.
Finally, borrower insurance is not affected by this decree. These are set up within the framework of a real estate financing or within the framework of a repurchase of credits . The Hamon law gives policyholders the possibility of terminating their insurance, in the event that they sign a contract with equivalent or greater guarantees.
More information on how to terminate your insurance contract at any time on the government's Economy and Finance portal .