To save money on your auto insurance, it can be tempting to reduce your coverage by going from comprehensive to third party or third party plus. But is the game really worth the candle?
At the end of 2022, a survey showed that one in four French people would be ready to give up vehicle insurance to save money due to rising prices. While more than one out of two insured devotes between 20 and 60 euros monthly Unsurprisingly, more than 70% of respondents consider paying too much for this item of expenditure, sometimes without knowing exactly how the company uses the premium. At a time when inflation is putting a strain on a budget already crippled by energy and rising food prices, are the French calling into question their car insurance contract?
Today, more than one out of two auto insurance contracts is all-risk (55%), the most protective formula. Indeed, damage in the event of an accident, whether or not one is responsible, whether or not there is an identified third party, is covered. Coverage that is necessarily more expensive and which is seeing its market share erode, according to the comparator Assurland, which quantifies 667 euros the average cost of comprehensive insurance in 2022.
In this context, some motorists are wondering if it was in their interest to change the formula to save money. There is a marked interest in third party insurance even if we do not note an increase in the number of contract signatures, explains MoneyVox Fanny Limare-Wolf of L’Olivier Assurance.
Despite inflation, a wait-and-see attitude is required before changing the level of protection. Indeed, third-party insurance is the minimum. We also talk about civil liability. This cover is compulsory and covers material and physical damage caused to another driver and/or pedestrian in a damage where the insured at the wheel is responsible. With such a contract, you waive the cost of repairs to your car and medical expenses in the event of injury. There is another possibility the improved third which accompanies the minimum service of options. This formula scores on average 598 euros against 587 euros for the simple third.
A 46% discount between all risks and the third party
At the comparator Assurland, the number of quotes requested from third parties increased by 30% between January 2021 and January 2022, but the level of transformation of these information gathering remains insignificant, just under 3%. If it is advisable to take stock of your auto and home insurance contracts every two years, should you change coverage in 2023 to save money?
Of course you will pay less. A 40-year-old man, license holder for 22 years who lives in Nantes and benefits from a 50 bonus, i.e. a good profile, reassuring for the insurer (table below), you will pay up to 207euros less per year with a 46% discount.
A 40-year-old man, license for 22 years, lives in Nantes, bonus 50
| Third | Third party + (theft/fire/glass breakage) | All risks | |
|---|---|---|---|
| 2021 Peugeot 3008 Gasoline – 7 HP | 182 | 268 | 387 |
| Renault Clio V from 2021 – Gasoline – 5 HP | 161 | 198 | 293 |
Source: comparator Assurland.com
Between all risks and third party, what to do? With the price of new vehicles and the rise in the price of used cars (+14% in 2022), the all-risks remains valid for approximately 10 years, against 7 or 8 years before confinement, explains Olivier Moustacakis from Assurland.com. Especially since the price of spare parts and labor has never been so high in the event of a problem.
But as often in insurance, the price is not the best guide. Between third party and comprehensivethe insurance companies also offer a strained third or third plus.
What options to choose for a tense third party?
It is therefore civil liability to which we add options, according to his profile. The most important thing is to think about its uses, explains Olivier Moustacakis. Do you need legal protection? Doesn’t it duplicate that of your home insurance? Likewise, do you need 0 kilometer assistance and/or a loaner vehicle in the event of immobilization? Shouldn’t your annual kilometers encourage you to take out a contract where you pay what you drive?
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There is no right answer to these questions, but in the event of a third-party contract, the driver’s guarantee is to be considered carefully, continues the expert. In this case, if the driver is injured in a traffic accident in which he is at fault or in which no person is responsible, the driver’s guarantee allows him to be compensated. This option costs around 100 euros per year.
In its classic version, the third party + offer often offers coverage for fire or theft. They allow you to receive compensation equal to the value of the vehicle on the day of the fire or theft, or a value specified in the insurance contract, as defined by France Assureurs. Moreover, they are subscribed in 86.6% of auto contracts, according to FA. Be careful though, these options can be accompanied by exceptions or counterparties such as the installation of an alarm for theft. The fire and theft protection option alone costs approximately 250 euros per year.
Is the franchise worth its cost?
The broken ice is also a guarantee to study on loan because it is expensive. Indeed, if the average price of the auto insurance premium is up by 3 to 5% in 2023, it is due in particular to spare parts (+10%) and windshields, the average price of which has increased by 8% in 2022 compared to 2021. As with other options, it is advisable to compare the amount of your glass breakage deductible with the total cost of the insurance and to see if an increase in the first does not make it possible to lower the second. Especially since prices will continue to rise in the years to come.
Defining your needs and choosing your own formula remain the best protection for your safety and your finances. Lack of insurance is the black market scenario, insists Fanny Limare-Wolf. First, all policyholders will be penalized with the key to a substantial increase in premiums from insurers to protect themselves from this risk.
Afterwards, driving without insurance is an offense punishable by imprisonment. If you cause damage to others with your vehicle, you risk a fine of 3,750 euros and 10 years’ imprisonment. And that’s not all. The guarantee fund, which will compensate the victim(s) up to several million euros, is authorized to seize your income and your real estate for reimbursement.
Car insurance: change contract