liberation.fr
French Car and Home Insurance Premiums to Rise Significantly in 2026
French car and home insurance premiums are set to increase by 7.5% to 8% for multi-risk home insurance and around 5% for car insurance in 2026, driven by increased frequency and intensity of climate-related disasters and rising repair costs.
- What is the projected increase in insurance premiums for 2026, and what are the main contributing factors?
- Multi-risk home insurance premiums are projected to increase by 7.5% to 8%, reaching an average of €325 excluding tax annually, while car insurance premiums will rise by approximately 5%, averaging €563 excluding tax. This is due to more frequent and intense climate-related disasters and increased repair costs for increasingly sophisticated vehicles.
- What measures are insurers taking to mitigate cost increases, and what broader implications might these price increases have?
- Insurers are implementing measures like Crédit Mutuel's "Station Mobilités" program, which provides loaner cars during repairs. However, the consistent increase in premiums suggests a broader trend influenced by climate change and the increasing cost of vehicle repairs. This may lead to decreased coverage among some policyholders.
- How do the projected increases compare to inflation and previous years' increases, and what challenges do these increases pose?
- The projected increases significantly surpass the 0.9% annual inflation rate in August 2024. While the increases are less than the 10% rise seen this year for multi-risk home insurance, they raise concerns about affordability for those on tighter budgets. The higher premiums are partly due to a larger share of surcharges funding the natural disaster regime.
Cognitive Concepts
Framing Bias
The article presents a balanced view of rising insurance premiums, citing various sources with differing estimations of the increase. While the significant increase is highlighted, the article also mentions that this increase is less than what was seen this year. The inclusion of multiple perspectives from different firms (Addactis, Facts & Figures, Assurland) mitigates potential framing bias.
Language Bias
The language used is largely neutral and objective. Terms like "significant hausse" are factual descriptions, not emotionally charged language. The use of direct quotes from experts further enhances neutrality.
Bias by Omission
While the article provides a comprehensive overview, potential omissions include a deeper analysis of the specific factors contributing to the varying predictions across different insurance companies. Further detail on government regulations impacting insurance costs could also enhance the article's completeness. However, given the article's length, these omissions are likely due to practical constraints and not intentional bias.
Sustainable Development Goals
The article directly addresses the impacts of climate change on insurance costs. Increased frequency and intensity of climate-related disasters (storms, floods) are driving up insurance premiums for both auto and home insurance. This reflects the financial burden of climate change and its effects on infrastructure and property. The rising costs of repairing climate-related damage to vehicles are also highlighted. This negatively impacts individuals and the economy, hindering progress towards climate resilience and adaptation.