The last few years have been tough on the wallets of French households. Example: the regulated electricity price increased by 15% in February 2023 and a new increase of 10% was applied in August 2023. The “housewife’s basket” also suffered from food inflation, with increases averages of 10 to 12% on certain basic products.
Fortunately, the rise in prices has slowed significantly since the start of 2024. A phenomenon accentuated more recently by the fall in energy prices, and in particular that of fuels. After having exploded in recent years, the price of oil has indeed returned to more reasonable figures, with a level similar to the prices applicable in 2021. But despite this recent drop in the rate of inflation, which has fallen below the bar 2% in August, consumers will still have to face next year the increase in certain prices which will at least partially compensate for the few price reductions or freezes that they may notice here and there.
Scheduled for 2025, this price increase will concern all French people. It concerns the increase in insurance prices, both for car contracts and for home contracts. Increases in contributions are indeed to be expected for policyholders. And unfortunately, these price increases will not be anecdotal.
For automobiles, sector specialists predict an increase of 4% to 6% in prices, despite a relative drop in the number of claims in 2023 and increased competition between insurers. Among the reasons given: factors such as an increase in thefts, an increase in broken glass, and soaring repair costs, particularly for hybrid and electric vehicles.
The increase in prices will be felt even more for comprehensive home insurance, since the future increase should be between 8% and 12%. Climatic events, such as floods and storms, lead to a significant increase in compensated losses and largely explain the surge in rates. This increase is also accentuated by the increase in prices of construction materials and labor, making repairs more expensive. In addition, insurers’ contribution to the natural disaster compensation fund will increase from 12 to 20% on January 1, 2025, leading to an average increase of 20 euros per dwelling.
Even if the cost of electricity is expected to fall by more than 10% next year, notable increases in insurer prices should unfortunately offset all or part of future drops in energy prices. These increases are essential for consumers since no one can do without car or home insurance. The only solution to mitigate the impact: find out and compare offers in order to compete and benefit from reductions.
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