Purchasing Power: Significant savings by putting your contracts into competition

Purchasing Power: Significant savings by putting your contracts into competition

What if you don’t need a CEO to boost your purchasing power? With the various editorial laws that have come into force in recent years, putting your contracts into the competition has never been easier. Since June 1, newly subscribed borrower insurance contracts can be implemented at any time, and from September 1, this possibility will be extended to all concluded contracts. Good news for mortgage holders. The editing has also extended to the supplemental health contract, which becomes achievable at any time since December 1, 2020.

Feel free to turn to your bank. Institutions can be heavy on charging. So turn on the Bank Mobility Act, also known as the Macron Act. The system, in force since 2015, makes it possible to automatically transfer recurring transactions from the old account – transfers and direct debits – to the new facility. The goal is to break the lock on competition in this sector. According to our track record, it is possible to divide an employee’s bill by 7.

Borrower’s insurance is now revocable at any time

The shackle jacket was finally broken. From June 1, new insurance contracts for the borrower can be terminated at any time, and the entire contract stock will be from September 1. A real step forward because until then, individuals had a complex arsenal for playing the competition. They can choose to sign up for a contract outside of their bank’s contract at the time the loan is signed, but they can also change it during the year following the contract is signed, or even at each anniversary of the latter. With this new regulation, the goal of parliamentarians becomes clear: that the market is no longer monopolized by 88% of banks and that alternative insurance companies are finally doing well, it must be said that the latter have serious assets to play.

Despite the increase in prices noted by intermediaries, the prices remain very competitive. According to the calculations made by Capital (before the implementation of the reform) with the specialized broker Magnolia, insurance rates are 2-3 times lower with an alternative insurance company than with a bank. A healthy couple in their 30s will pay a total of more than 23,000 euros to cover their 193,000 euros loan from their bank… compared to just 3,531 euros from the competition. And so divide the bill by six, with safeguards at least! Overall, Magnolia calculated that an average of 15,000 euros could be saved over the total term of the loan, or 50 euros per month if the credit was extended over 25 years.

>> Our Service – Save money by testing our Home Loan Insurance Comparison Tool

Supplementary Market Liberated

La Mutualité Française, an organization that brings together mutual funds operating in the country, announced at the beginning of the year that the premium for supplemental health contracts would increase at an average rate of 3.4% in 2022. A lower amount of inflation, which can be justified by picking up with the sponsorship of the French. Repayments increased 6% in 2021 compared to 2019.

Single contracts saw their prices rise an average of 3.2% in 2022, which makes access to supplemental reimbursement a little more expensive for students, self-employed people, and retirees. In the face of these increases, there is a partial solution: a so-called sub-annual termination. Effective December 1, 2020, supplemental health insurance can be terminated at any time of the year – and without penalty – from the first anniversary of the contract. Until then, the window of opportunity to be able to compete with his contract was very limited, and the order had to honor a very tight schedule.

By comparing its contracts, it is possible to make very good savings, as evidenced by simulations conducted by the Hyperassur Insurance Comparison at the time of entry into force of the reform. By choosing a contract with similar guarantees, the student can generate €100 of annual income, the self-employed worker more than €300, and the pensioner around €600.

Your old car does not need to be fully insured

Forecasts were made in September 2021, before the start of the inflationary shock to France. But already, Facts & Figures, the consultancy, was counting on an average 2-3% increase in auto insurance contracts in 2023, under the influence of an increase in parts prices. It’s a safe bet that this number will eventually be higher than expected.

>> Our Service – Save money by testing Car insurance comparison

Faced with this, a simple solution: put your contract in competition. Your car cover can be terminated at any time after one year of subscription. This approach can be profitable, especially for cars that are erroneously insured under the all-risk equation. According to the Hyperassur comparison, it is possible for a 33-year-old driver with a maximum bonus to save 56% on his Renault Clio registered in 2017 in Rennes. All you have to do is switch from all-risk coverage to the third-party formula.

Dry spells will inflate your home insurance bill

Heat waves hit France hard. These droughts, besides being an environmental disaster, are very bad news for a multi-risk home insurance contract. The French Insurance Federation estimates the cumulative cost of the drought at 21 billion euros between 2014 and 2039, which is far from the 8 billion observed between 1988 and 2013.

>> Our Service – Save money by testing home insurance comparison tool

To manage the risk, your insurance company will have to include this cost in your premiums. The price increases observed in 2022 were mild – a maximum of 1.5% according to the facts and figures – but would be much lower than in 2023, the advisory warns. It is up to you to put your contracts in competition. According to the comparison Assurland, 80% of users have made savings, with an average of 216 euros. The savings to be made are greater for the most loyal customers. Because insurance companies focus their pricing efforts on new customers to grow their portfolio in a very competitive market.

Be unfaithful to your bank

Below inflation – 5.2% in one year in May according to the Banque de France – the increase in bank fees reached 1.5% in 2022 according to the comparison Panorabanques. A Frenchman pays an average of €219.9 per year to benefit from the services provided by his bank. However, by defining the uses attributes, we note that the increases are above average. The largest outbreaks are among retirees (+4.28%), youth (+3.85%), middle managers (3.57%) and employees (2.87%).

>> Our Service – Save up to 300€ per year by testing our bank rate comparison

So what are you waiting for to change banks? According to our annual ranking, online banks are in almost all cases the cheapest institutions, notably Boursorama and Fortuneo. Clients linked to their branch network will be able to turn to the regional banks of Credit Agricole, which occupies a very good position in the rating. Just like Postal Bank branches. An employee, who pays an average of 179 euros annually to his bank, can split the bill by more than 7 by placing the enterprise in competition.

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