How to choose the best insurance in 2022?

How to choose the best insurance in 2022?


The principle of insurance is to cover yourself against possible losses that may arise on what you are or what you have. Mandatory sometimes, often advised, taking out insurance is an act that concerns us all. However, with its specific jargon and the multiplicity of offers available, it is easy to get lost. To help you see more clearly, we suggest you unfold together the main concepts on the subject. Follow the guide and the intricacies of insurance will hold no secrets for you!

Summary

    Definition of insurance
    What is the insurance for?
    Insurance: how does it work?
    Who are the main players in insurance?
    What are the compulsory insurances?
    Where to take out an insurance contract?
    Termination of the insurance contract
    Who created the insurance?
    Insurance: main concepts to know

Definition of insurance

Insurance is defined as "the contract by which the insurer undertakes to indemnify the insured, in return for an insurance premium or a contribution, for certain possible risks or claims". In other words, insurance is the commitment that will allow the insured to be covered in the event of a claim, by his insurance company.

There are 2 main types of insurance:

    property insurance covers what you own - your assets - and therefore includes your house (home insurance), your vehicle (auto, motorcycle, boat insurance), your telephone (specific affinity telephone insurance), etc. ;

    personal insurance covers the risks inherent in your everyday life. They are more numerous and include a wide variety of contracts such as school insurance, long-term care, death insurance, travel insurance or even mutual health insurance.

The insurance system includes a notion of solidarity and risk pooling through the contribution.
What is the insurance for?

Being covered by insurance helps protect against life risks. A fire in your home, a dismissal jeopardizing the repayment of your loan, a conflict with your neighbor, hospitalization, car breakdown ... are as many potential risks as they are reasons to guard against them.

In some cases, you are required by law to be covered by insurance. Thus, if you have a car, it must be insured. Same thing if you are a tenant: your landlord will - to comply with the law - ensure that you are covered for the accommodation you occupy.

    In addition to these insurance related to property, French law requires everyone to take out Civil Liability. This is the minimum coverage and everyone must be able to justify it. Generally, it is part of the mandatory guarantees present in your home insurance or your credit card, and you will not have to take it out individually.

Then there are a multitude of insurances which, although optional, are highly recommended. In fact, these additional guarantees are less risks in the event of a claim. Depending on your lifestyle and lifestyle (playing a risky sport for example), it can be very useful to take out insurance on this point, otherwise you will assume full responsibility in the event of a claim. This forethought helps to avoid many uncomfortable situations.
Insurance: how does it work?

The purchase of insurance is materialized by the signing of a contract between the insured and the insurer. The application of this contract commits the insured to pay an insurance premium in order to cover the risks determined in the latter.

The premium depends on the potential risk: for example, the home insurance premium of an owner of a large 5-room house will not be the same as that of an owner of a T2. The risk covered must be specified in this contract, as well as the type of coverage: insurance deductibles, amount of guarantee, etc. The insurance premium is paid annually or in the form of monthly or quarterly contributions.

In many cases, contributions and bonuses are the same thing. Some people distinguish the premium as the lump sum of contributions for the year. Others use the term "contribution" for mutual contracts. If this does not seem clear to you in your contract, go directly to your insurer.

The insured must respect a certain time limit to notify his company in the event of a claim. For a disaster such as a fire, water damage or an explosion, the declaration must be made within 5 working days. In the event of a natural disaster, the deadline of 10 days following the ministerial order recognizing the disaster as such must be respected.