When taking out a loan to finance the purchase of a car, it is strongly recommended to take out a car credit insurance.
Not mandatory, this protection offers, in case of incidents of life that prevent you from paying your monthly payments, an effective guarantee.
If an incident in life no longer allows you to pay the payment of your monthly car credit, the insurer will then take over and pay, as the case, the monthly payments or the balance of your credit. You will be so quiet and protect your loved ones from pecuniary problems should the worst happen.
Most lending agencies offer auto credit insurance. It prevents various risks: death, temporary incapacity for work, total loss of autonomy and loss of employment following dismissal on indefinite employment.
It is important, however, to distinguish between the optional car credit insurance (which relates to the loan contracted) and the car insurance (compulsory to drive while protecting you against any damage and bodily injury that you may suffer or that you can cause).
There are various types of guarantees, depending on your situation and your profile.
- If you are under 55:
It is advisable to optimize your protection by opting for all the guarantees: total temporary incapacity for work, PTIA (total and irreversible loss of autonomy), death and loss of employment.
Therefore, until December 31st of the year of your 60th birthday, it is your insurer who will assume your monthly payments if you are dismissed or in total temporary incapacity for work.
On the other hand, in case of PTIA or death, you are protected with respect to the principal owed until the end of the year of your 65 years.
- If you are under 65:
These are the same guarantees as in the previous case, except for the loss of employment.
As for the total temporary inability to work, if it occurs before December 31 of the year of your 60th birthday, your insurer will pay your monthly payments remaining due.
With respect to a possible death (occurring before December 31st of the year of your 80th birthday) or a PTIA (occurring before December 31st of your 65th birthday), the insurance organization will pay the totality of the outstanding amount .
- If you are between 65 and 80 years old:
The senior death guarantee is the ideal cover. In this way, until December 31 of the year of your 80th birthday, if you die, your insurer will pay the outstanding amount.
Where to subscribe?
Currently, the law allows you to take out auto credit insurance with the insurer of your choice. The principle of insurance delegation then applies.
The only condition you must meet, if you decide to use the competition, is to opt for a contract with guarantees equivalent to those offered by the lender. If this is not the case, then it has an irrefutable reason to refuse your insurance application.
In other words, even if the body that lends you the capital systematically offers you a contract, you are under no obligation to accept it.
On the contrary, it is advisable to make comparisons between all the offers available on the market to find the best possible coverage adapted to your case and your needs and at a good price.
In addition, the cost of auto credit insurance is added to the cost of the total loan, so reducing it also means reducing the total loan amount, especially if the capital you request is high. On the other hand, for a small sum, the option of the credit organization is simplified, especially since the price difference will certainly be minimal.