Bad news for motorists. After the surge in fuel prices, another expense is set to rise in France. It’s auto insurance. Here’s by how much and how to save.
An increase expected between 3% and 4.5%
Owning a car means having recurring expenses. After purchasing the vehicle, you must head to the pump or a charging station, but you also need to insure your car. In France, you do not legally have the right to drive without having your car insured.
Problem: insurance is becoming an increasingly costly expense. Unfortunately, the trend is still rising. Bad news for drivers, who already face soaring fuel prices.
The firm Facts & Figures published its estimates for next year. According to them, the rise in auto insurance would be between 3 and 4%. It’s even a bit higher for another study, that of Addactis, which projects a rise up to 4.5%.
Why such a rise? Both studies point to insurers’ costs tied to climate-related risks. The proliferation of storms, hail, and other events only increases claims and thus additional repairs.
Moreover, it turns out that modern vehicles use technologies and materials that are more expensive. As a result, the final bill is even higher for insurers. A final bill greatly affected by hybrids and electric cars, deemed more delicate to repair.
What tips to pay less?
Facing this situation, there are a few actions that can lower the final bill. First, it’s crucial to choose the right level of coverage. Opting for “comprehensive” insurance isn’t necessarily the best solution, especially if you drive a lot. If your vehicle is more than 7 years old, you can insure it for third‑party, no problem. To be better covered, where applicable, it’s best to opt for additional guarantees.
Another tip: raise your deductible. This is the amount you still have to pay in case of an incident. A cheap auto policy will typically come with a higher deductible, and vice versa.
Next, prioritize paying the premium in a single lump sum. Admittedly, it’s a big budget item, but if you choose monthly payments, you’ll incur extra fees to pay. If possible, do your home-to-work commute using public transit and inform your insurer. The premium will then be lower.
It is also recommended to opt for per‑kilometer insurance if you hardly drive. The cost of the premium will then be lower. Finally, if you can, don’t hesitate to park your car in a garage. The premium will be lower if your vehicle is protected to the maximum.
