Auto and home insurance premiums will increase on average by at least 3% in 2023. While some specific contracts may benefit from a gesture from insurers, the best way to preserve purchasing power is to compare your contract and possibly to take advantage of commercial discounts granted to newcomers.
The pressure was expected to be terrible, but the summit gave birth to a mouse. Received Tuesday at the Minister of the Economy, the insurers validated Bruno Le Maire’s request for moderate their rates below inflation in 2023 without making binding commitments. I think that we have reached the best possible agreement in a situation which is very tense for the world of insurance, declared the minister at the end of the meeting. Despite the weight of the climatic events since January, we share the minister’s ambition which is to help fight for purchasing power, said Florence Lustman, the president of France Assureurs which brings together a large part of the players in the market.
As a result, as expected, the insurers undertook to deliver a car check of 100 euros destination of unemployed people under 25. Advances have also been recorded to remove the green sticker in car insurance and Bercy encourages more for the use of spare parts in the context of repairs. Other individual commitments from the companies and on a case-by-case basis, intended for the most vulnerable audiences, should follow. For example, Macif or Matmut have announced gestures towards students or certain very specific contracts such as electric vehicles. However, no general commitment on the level of the premium for the rest of the contracts has been made.
According to the first projections, in 2023, home and auto insurance premiums will increase in proportions higher than those observed in 2022. Even mutualists will have to increase their rates, finding themselves unable to extend the freeze of past years.
Car insurance: +5% in 2023?
For the firm Facts & Figures (F&F), current contracts will increase by 35%. The comparator Assurland is betting on an increase of between 2.5 and 3%. The causes given are always the same: the rise in the price of spare parts and car repairs (+3.5% over one year).
For example, the average price of front left mirrors (known as driver’s mirrors) jumped 7.7% in 2022 compared to 2021 underlines F&F. The average price of front windshields increased by 8% in 2022 compared to 2021. Finally, the average price of front bumpers rose by 6.8% in 2022 compared to 2021, with a drive of 10.5% for SUVs against 5.2% for sedans. An increase twice as large for SUVs, whose number of registrations is exploding, which should affect the contribution. Thus, the increases will occur with greater intensity for SUVs than for the rest of the vehicles. In terms of electric vehicles, we are also seeing a catch-up effect after the first advantageous contracts for the customer, underlines Christophe Bescond, marketing director of the broker AcommeAssure.
The price of spare parts shows an average increase of 10%
The entire automobile chain is affected by inflation. the hourly cost of labor explodes, that of spare parts increases and, at the end of the chain, the invoice for insurers (and therefore for private individuals) too, without the development of spare parts managing to reverse the trend. The price of spare parts shows an average increase of 10% against 2.2% in 2021 and that of repairs by 3.5% over the last twelve months, underlines the comparator Assurland.
Furthermore, fidlit does not pay in insurance. You have to take advantage of the Hamon law and compare your minimum contract every 2 years to benefit from any welcome commercial offers, recalls Olivier Moustacakis from Assurland.
Car insurance: what the insurer really does with my money
An increase between 30 and 60 euros on average per year
According to experts contacted by MoneyVox, the increase in car contributions will be closer to 5% than 3% in 2023. On this basis, by how many euros will the contribution increase? On average, in 2022, the annual bill amounted to 611 euros including tax according to Assurland. In 2023, an average driver could therefore pay a little more than 30euros extra.
But a young driver or someone with a penalty already pays almost double that amount, insists Christophe Bescond, of AcommeAssure. For them, the price increase would therefore be more than 60 euros.
Car insurance: compare your contract
Home insurance: +3% minimum
Climatic phenomena cost insurers 5.2 billion euros between January and August 2022. As a result, the home insurance premium will increase. The comparator Assurland expects an average of between 3 and 3.5% in 2023 when Facts & Figures is targeting an average increase of between 3 and 5% next year. Certainly before taking off in the coming years, due to unpredictable hazards, but also to the drought which considerably damages housing in part of France.
These are more insidious phenomena, but prove to be extremely costly for insurers. They generate cracks in many pavilions built with foundations that are too fragile with regard to the phenomena of contraction and then swelling of the local soil, analyzes F&F.
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Insurers are demanding an increase in the Catnat guarantee (for natural disasters). For the moment, the additional premium which abounds remains fixed at 12% on MRH contracts [d’assurance habitation, NDLR] and 6% on car insurance contracts, explains Olivier Moustacakis who estimates that this percentage will not change in the coming months to preserve the purchasing power of the French.
But in this case, the tariff moderation of contributions is hard to maintain, especially with this level of inflation close to 6%, estimates Christophe Bescond. If the government does not give reason to the insurers on the Catnat, the danger is to see a quasi fixed increase in each contract of the order of 10 euros under the climate, estimates the firm Facts & Figures. However, the revaluation of the tax financing the natural disaster scheme to 18% of home insurance contributions (against 12% today) is only a matter of time. The Prudential Control and Resolution Authority of the Banque de France predicts an increase in insurance premiums of 130 to 200% over the next 30 years.
Finally, home insurance is also weakened by the rise in prices of nearly 3% for materials and labour.
Less than 10 euros increase in housing
The average price of home insurance is 236 euros per year in France, according to the broker Meilleurtaux. For an apartment, this price falls to 181 euros and that of a house rises to 290 euros. The most expensive home insurance in France is in Corsica with an average price of 416 euros.
For these policyholders, the price increase will have an impact of around ten euros, based on a 3% increase: 5.41euros per year for an apartment and 8.70euros for a house.
Home insurance: compare your contract