It’s been an open secret, but car insurance is likely to skyrocket in 2023 Facts and figures. An increase that will add additional costs to households already affected by increases in all areas of daily life.

Reasons for promotion

According to the consulting firm Facts and figures who announced his predictions on September 14, 2022, it is necessary to increase insurance premiums due to several factors. The first of these comes from the registration of new vehicles. Among them we find more and more SUVs (42% of new car sales), hybrid models or even electric cars (these two powerplant types now account for a third of sales). The problem is that these models, which sometimes combine SUV and electrification, buy more expensively, but also in case of an accident and/or repair because of their many electronic components.

Natural disasters, parts prices, rising health care costs…https://t.co/JD0KEUz0xF

— Yahoo News (@YahooActuFR) September 16, 2022

Cost of spare parts, electronic or not, is also an important factor. Example, front windshield costs 8% more expensive on average than before, while the increase is over 7.5% for the rearview mirror. If you add to all this an increase in the hourly cost of labor which must increasingly specialize as well as adjust to inflation, it is difficult for motorists not to bear the full brunt of unpleasant increases in insurance costs.

How much will this increase be?

Given the rapid rise in fuel prices, this may be the case the French drove fewer kilometers This year. So the fact that the number of accidents is slightly lower than expected could hold back the increase in premiums a bit. The increasing use of refurbished used parts can also benefit motorists.

Car insurance: the average budget is 632 euros per year, which is 12% more in five years
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— The Parisian (@le_Parisian) June 9, 2020

The Ministry of Economy said that they are putting pressure on insurers to limit this increase as much as possible. However, the consulting company Facts & Figures predicts growth of 3 to 5% for all car insurance contracts. The above-mentioned models – SUVs, hybrids or electric cars – should experience the greatest growth.