Car and home insurance: in 2023 moderate price increases… but not for everyone – Inflation



Lisa, who prefers to remain anonymous, is “doubly unhappy”. In addition to the abolition of the “free month” that she could benefit from in 2022, the price of her car insurance will increase by almost 22% in 2023. An increase that contrasts with the sector’s promise to moderate its prices. “I called Groupama and they told me there was nothing they could do, that it was a general increase for all customers related to inflation and repair costs,” testifies this 35-year-old woman, who did not. But there were no accidents in 2022.

An obligation fulfilled?

Repair prices have actually increased by more than 10% between the summer of 2021 and the summer of 2022, according to various studies. But in September the sector committed, notably to Bruno Le Maire, the economy minister, to keep price increases below inflation on average, which was 6.2% in a year in November.

“We will comply with Bercy’s requests,” Groupama replied without giving specific figures. Macif, for its part, indicated that “the increase in prices should be half of inflation on average”, while Maif communicated an increase of 2% for car insurance and 4.5% for housing, with a freeze for those under 30 in the latter coincidence.

Now the insurance companies say no more

Strong differences

However, it is difficult to get an overview. “Now the insurance companies no longer say anything”, laments Cyrille Chartier-Kastler, founder of the company Facts & Figures, which estimates the average increase for 2023 between 3% and 5% for the car, but in addition for the homes, especially in the areas that are most exposed to climatic risks.

According to Assurland, an online insurance comparator, the increase in prices in 2023 should be “moderate”, about 2.5% to 3% for housing and 3% to 3.5% for insurance.

But these averages hide strong discrepancies, as Lisa’s case illustrates. The comparator has e.g. estimated the increase in car prices for 18-25-year-olds – the most accident-prone – at 18% when they are already paying much more for their insurance. An increase in the opposite direction of the discourse on assistance to vulnerable populations, when in September insurers boasted of offering a €100 discount on car contracts to unemployed under-25s.

Drive the customer away

But “it’s always worked that way,” recalls Olivier Moustacakis, co-founder of Assurland. For insurance companies that “want to get rid of certain profiles”, there are two options: terminate the contract, which can represent a reputational cost, or increase “very significantly the price to trigger a termination on the part of the insured”, he explains.

This is what retired Laurence Fuchs ended up doing when she realized her mother’s house insurance would go from €564 to €683 a year. “They replied that it was normal,” says the person, who regrets not getting more explanation from Generali and wonders if having had significant water damage might have played a role.

The contact states the insurance company that “80% to 90%” of customers will have increases that are lower than inflation, but that there may actually be special cases depending on the customer’s seniority, the number of his contracts and the existence of a recent disaster or does not.

The most expensive areas? Île-de-France and the Paca region

The geographical area is another discriminating factor: Île-de-France, then the Paca region, are the two most expensive areas, both for cars and for homes, due to a higher loss rate on the road. , but also for burglary or climate. dangers, Assurland emphasizes.

There will inevitably be drastic increases

And if the profession has promised to moderate its prices, it may not last. “There will inevitably be huge increases”, explains Cyrille Chartier-Kastler, who believes that until now the insurance companies had reserves “under their feet”.

But between inflation and the increase in natural disasters – 2022 should be the worst year for France – they have no choice in the medium term but to pass the cost on to the consumer, he concludes.

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