Car insurance, repairs… prices are sky high
In 2024, French drivers will once again see their car insurance premiums rise. These would swing around 4% according to forecasts from Fakta og Tal. Concretely, this results in a average premium of 448 euros for a first class vehiclean increase of 3.4% compared to 2023. For the two-wheelershould the average premium be set at 260 euros, which corresponds to an increase of 2.9% compared to the previous year.
As revealed by the Automobile Safety and Repair Association (SRA) in its report on the cost of car repairs for July 2024, these have also increased. THE the price of spare partsin turn suffered one average increase of 9.7%it off 8.1% paintand that off workforce by 3.4% in the first half of 2024. In the same period, average costs for repairs thus amount to 676 euroswhich equals one increase of 26% compared to 2020, or 46 euros.
This is just the beginning
Several factors explain the increase in car insurance premiums and repair costs. Primarily the increasing sophistication of vehicles. Electrification of systems, integration of assisted driving technologies and use of specific materialss, especially for electric vehicles, do more technical and therefore more expensive repairs : counts around 15% more expensive for an electric car than a thermal car. For example, SUVs, which are becoming more and more popular, require larger and more expensive parts, which inevitably affects the bill should the accident happen.
Afterwards, the opening of the spare parts market to competition through the Climate and Resilience Act. This promised to lower prices, but due to increased competition in this market, the opposite happened, as shown by the figures from the Automobile Safety and Repair Association (SRA) mentioned above. To these two factors are added the consequences of the energy crisis and the increase in the price of raw materials, a direct consequence of the war in Ukraine. Finally the return of the habits of the French to use their vehicle : The more vehicles there are on the roads, the more the number of injuries increases, which has consequences in the end on the price of car insurance. Follow: Motorists are increasingly ignoring their MOTs. According to the 2022 Cetelem Automobile Observatory barometer, 5 to 7% of French drivers no longer have their vehicle pass this mandatory testthus endangering their lives, as well as that of other users on the road.
