This contract is obligatory for all French people, but its price will increase in the coming months.
This expense is obligatory: no one can escape it. Whether you are a student, retired, employed or unemployed, having insurance is essential in France. To buy or rent housing or to drive a vehicle, citizens are obliged to take out home insurance or car insurance. However, the prices of these millions of contracts will soon skyrocket.
This news comes when in 2023, the French have already seen the price of their insurance increase by 5%. Blame it on climate change. In 2022, insurance companies have had to face colossal expenses to compensate for damage caused by natural disasters. They paid no less than “10.6 billion euros to cover the losses”, indicates the federation of insurance professionals, France Assureurs.
Except that the situation has not improved in 2023, with costs linked to weather events amounting to 6.5 billion euros. “In normal times, coverage for natural disasters only costs 3.5 billion euros per year,” recalls France Assureurs. These particularly high compensation payments have therefore pushed insurance companies to increase their prices once again in 2024. According to data from Assurland.com, insurance contracts increased by 7.2% in 2024. Problem, a new increase in prices is planned for 2025. And it promises to be even more significant than in previous years.
In question, in 2025, insurers will increase the amount of the additional premium levied on home and automobile insurance contracts. This additional premium is precisely dedicated to compensating natural disasters. Concretely, from January 1, 2025, this additional premium will increase from 12 to 20% for home insurance and from 6 to 9% for car insurance. This measure will result in an additional annual cost of around 20 euros on a home insurance contract. The average price of a contract nationally will increase from 243 euros in 2024 to 263 euros in 2025.
In addition to this increase, insurance companies also plan to increase the price of their contracts. According to the firm Facts & Figures, the increase in home insurance could be between 10% and 12%, or even reach 15% for houses and detached houses. In short, this means that the average price of a home insurance contract could jump by around thirty additional euros, bringing the overall increase over the year to 50 euros. You will therefore have to pay around 290 euros to insure your property in 2025.
Automobile insurance will not be spared from this inflationary trend. Still according to the Facts & Figures firm, car insurance prices are expected to increase between 4 and 6% in 2025. Finally, mutual health insurance companies will also follow this upward trend. Forecasts from Facts & Figures indicate an increase of between 4.5% and 8.5% depending on the service providers for the year 2025.
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