A quarter of the French are ready to stop insuring their vehicle or their home to save money. We explain to you how to avoid getting there.
In which position to cut when the end of the month becomes difficult? Many French people are currently asking this question as inflation erodes the budgets of the most vulnerable households. Food? Clothing? Health? Hobbies? According to a recent poll (1)more than a quarter of the respondents would be ready no longer insure their car or home to save money. We see an acceleration in the rejection of insurance, confirms Jean-Louis Kiehl, president of the Crsus federation, which supports households in financial difficulties. People prefer to pay rent, repay loans and stop paying insurance.
Let’s be honest: it’s a very bad idea. Admittedly, this option has the short-term advantage of not affecting your lifestyle. However, it must be remembered: insuring your car and your home (if you are a tenant or co-owner) is obligations. In particular, driving without insurance is an offense punishable by a fine of 3,750 euros and 10 years in prison. And for good reason: Car insurance covers not only damage you suffer, but also damage you can cause to others with your vehicle. This is called civil liability. Without it, the entire bill will be your responsibility and its costs can be prohibitive.
40 day countdown
What actually happens if you stop paying your insurance premium? If, like the vast majority of French people, you have made monthly payments, you have generally seen correct the mistake. During a first default, most companies automatically defer the monthly payment to the following month. It is e.g. the case of MAIF, which agreed to answer our questions.
However, be careful: if your budget situation is not restored the following month, another payment event triggers a process, framed by the insurance code, which risks leading you, 40 days later, to no longer be covered. It begins with the sending of a opening letter, no later than 10 days after the non-payment. Once this registered letter is received, you have 30 days to pay your premium. After this deadline, the insurance company launches a new 10 day countdown, where your warranties are suspended. After these 10 days, he can simply terminate your contract.
To delay the launch of this countdown, some insurance companies are delaying the formal announcement. This is the case with MAIF, which sends a prior notice at the time of the second non-payment, invoiced 7.10 euros.
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Review your insurance coverage
To avoid getting there, there are no 36 solutions: you have to contact your insurance company. Indeed, suspension of warranties can often be avoided by negotiating one payment agreement. This usually begins with a partial payment of the unpaid premiums, then with an offset of the amounts still owed.
Discussing with your advisor may also allow you to create one update about your guarantees. In particular, check that the guarantees you benefit from remain in line with your needs, depending on the composition of your household or the condition of your possessions…
More generally, if the weight of insurance premiums in your budget is too high, it is advisable to make a overview of your insurance coverage. Boring work, but which can be a source of great savings. Search e.g. possible duplicates: We receive people who are insured five times for the same thing, and who at the same time can no longer put food in the fridge, complains Jean-Louis Kiehl. Or walk around the marketto check that you could not find cheaper elsewhere.
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(1) Leocare / Poll & Roll survey, conducted with a sample of 1,000 people representative of the French population aged 18 to 65, from September 13 to 20, 2022.