Exceptional increase in car insurance prices in 2025?

The prices of car insurance are expected to see a major increase in 2025 due to several simultaneous factors.

The independent firm Facts & Figures has published its forecasts for car and home insurance rates for 2025, and the news is not good. Car insurance premiums are expected to rise by 4 to 6% next year, an estimate validated by the leading media outlet l’Argus de l’Assurance.

The primary reason, according to the strategy and management consulting firm, is the uncontrollable rise in the cost of spare parts. For the first half of 2024 alone, the increase in the cost of new parts is set at 5.9%, following an 8.9% rise the previous year. Although the study does not address it, the construction method of modern cars is to blame. To reduce manufacturing costs, manufacturers are trying to increase the size of the produced parts. In the most extreme cases, damage to a side skirt can affect the chassis itself, leading to the scrapping of a car that appears to be only mildly damaged. Furthermore, it is now easier and faster to replace a part such as a door rather than attempt to repair it.

Human Before Material

However, while a mirror shell or a door has a price, accidents have a human cost that is much heavier for insurers to bear. The trend of premiums historically follows the trend of the number of accidents, injuries, and fatalities on the road. The latest figures show a deterioration in 2024 compared to the same period in 2023, with an increase in personal injuries, serious injuries, and sadly, fatalities, nearing 4%.

More critically, the number of accidents involving users of so-called Soft Mobility means has increased by 10%. They now account for nearly a quarter of the total number of deaths on the roads. Incivilities, ignorance of traffic rules, refusal to wear helmets… the causes are identified, but the remedies are not. The proliferation of these modes of transportation naturally leads to an increase in risks, but public services seem more inclined to penalize a motorist exceeding the speed limit by 5 km/h than to address two carefree youths weaving between cars on a bicycle or scooter designed for a single passenger.

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