Car insurance: prices will rise, UFC-Que Choisir explains why!

If this year does not remain truly magnificent. It’s back to inflation, shortages, shortages of certain products, tensions, etc. It doesn’t seem to be settling down just yet. In addition to seeing it daily living costs increase as does shopping, fuel or even energies, further increases can be expected. Car and even home insurance may well experience a certain increase in the coming year. We will explain everything here.

The increase in car insurance

In addition to seeing absolutely everything rise, the French will thus also have to prepare to pay more for their car insurance. It turns out that although the number of traffic accidents does not seem to have increased, insurance companies have to raise prices. And for good reason. Take effect, the insurance used to cover damagesthen more accidents happen, the insurance companies inflate the prices.

But when car insurance talks about claims, it doesn’t just take human fault accidents. Nature also plays a role a very large role. Whereas France until then had the right to calm weather, outside of too many major natural disasters, times are changing. The climate is changing and the weather is getting worse. As could be seen in the month of July in south-west France or even in Corsica.

Worrying numbers

So the French can expect to see insurance reduced by 2 to 3% for the coming year. The CEO of Macif nevertheless explained that “climatically, 2022 is a disastrous year”. It turns out that the car insurance had to cover a lot of costs due to natural disasters.

Currently, car insurance companies have already had to pay almost 750 million euros only covering damage related to storms or even hail. “That is three times more than a normal year”. So for the insurance companies it is no longer profitable. And in light of rising risks, so do prices.

However, aware of this problem, the government has ensured that car insurance policies do not start growing faster than inflation. So the insurance companies agreed and even added “a €100 discount on the car insurance contract for young jobseekers”. Thus, the forecasts for the moment remain according to the comparison Assurland “2.5% to 3% average price change.

Inflation and car insurance

Another concern arises in addition to the auto insurance climate. In fact, it remains the cost of spare parts. The director of Macif announces an “over inflation because the technologies are more advanced”. Bosh’s after sales manager even states “The more technology, the more expensive it is. A mirror now has a sensor and an electric motor. This has nothing to do with what we knew 10 years ago! Wiper blades today are of an impressive length, they respect a certain curvature, is sometimes specifically calibrated for such a windshield… Everything has changed, including the price”.

So on top of everything that has already happened this year, car insurance needs to change. Alliance Automotive Group’s Director of Procurement announces “The inflationary phenomenon stems from a disorganization due to Covid. Shipping costs in particular have risen dramatically. They were multiplied by 10 at one point. For brake discs, for example, the majority of production comes from China. The price of plates has increased by 20 per cent. But to this phenomenon came the impact of the conflict in Ukraine: all the products manufactured in Europe, which had not suffered from the increase in transport costs, thus suffered now rising energy prices”.

Energy and car insurance

Because if the French are obviously very strongly affected by the increase in energy prices, so are the big industries. The general manager of Cora then explains that “Inflation on the price of parts is about 7% at present, while the trend was +4% every year until then. Utility costs, energy, everything has gone up. Glass manufacturers, for example, use a lot of energy to make glass. They are very affected by the increase. They have raised their prices and will continue to do so.”.

The director of my Macif also wants to clarify that if car insurance prices are likely to increase, it depends on the vehicles. It turns out that some vehicles are much riskier than others. Or at least more to change. He states that “A Peugeot 208, that’s 20% more glazed surface compared to a 206”.

The inflation bond

Thus, although until then, accidents remained the most likely cause of insurance car see their rate increase. This does not remain the case. The good news is that at least there are no more man-made accidents. On the other hand, all the concerns related to the climate are still much more present. So the factor that the insurance cannot control can quickly cost them dearly. Especially since the climate wants more and more to be less and less reassuring. Between driest July in years. And now October hottest since 2001all this does not lead to anything good.

Thus, according to the car insurance over a year, there was a 0.4% increase in accidents. Which equals stability. On the other hand, for allowances, the increase remains 5% to 7% according to France Assureurs.

In order for the car insurance to pay less, it remains to repair the damage instead. instead of changing them. More and more, the work seems to be done to renovate rooms. And therefore could offer more for different types of drivers. It will therefore still take a long time with this option to use used rest completely possible.

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