Insurance rates: rises especially for motorists

The insurance premium for a car is expected to increase by 2 to 3% on average in 2018, according to a study by Facts & Figures. Home insurance will also increase, but less than in previous years.

Although the specific rates will not be released before the end of the year, insurers should still increase their prices for 2018, according to consulting firm Facts & Figures. According to the barometer of this sector specialist, increases should reach 2 to 3% for car insurance. The increase was 1.60% in 2017, and only 0.64% in 2016. Similarly the home insurance will increase, but less perceptibly. Contacted by Le Figaro , Axa however does not confirm these estimates and considers "premature to give information on pricing guidelines in September."

Insurers pass on the costs of repairs

Several reasons seem to explain this rise in prices in the insurance of a vehicle. Automobiles are becoming more complex and repairs are more and more expensive, garages involved in electronics in addition to mechanics. But above all, spare parts are sold more expensive by manufacturers: according to  Jacques de Peretti, President and CEO of Axa France , brands withdraw from the margin of the selling price of the car and pass it on parts in case of repairs. The Facts & Figures study also includes details such as the price increase for automotive paint ingredients, which has been more than 3% per year since 2012!

Other factors of increased costs for insurers include increased compensation for accident victims, combined with  higher fatalities and injuries on the roads . The increased use of the phone by car, for calls but also sms and navigation on smartphone, and speed, are the main cause of the multiplication of accidents.

Home insurance will rise, but less than in previous years

However, home insurance is not expected to grow as fast as in recent years: Facts & Figures estimates the increase to 1 or 2% in January 2018, while it was 2.40% at the beginning of 2017. is true that for several years, insurers have significantly increased their premiums (3.2% per year on average, between 2009 and 2015), and have accumulated strong reserves to cope with possible disasters and climate events.