Drivers will see their bills go up by about 40 euros.

France has more than 40 million drivers, and all of them will be affected by a new expense. This expense is related to the increase in the cost of all insurance policies expected in 2025.

We already know that home insurance premiums will see a sharp increase starting next year. In 2023, home insurance premiums had already risen by 5%, followed by a more pronounced increase of 7.2% in 2024. For 2025, forecasts from the consulting firm Facts & Figures predict an even larger increase, ranging from 10 to 12 percent, and potentially as high as 15 percent for single-family homes and detached houses.
 

However, amid this widespread inflation, auto insurance is not immune. This increase will affect the millions of insured vehicles in France, given that auto insurance is a legal requirement for all vehicle owners.

In 2024, auto insurance premiums have already risen significantly. According to France Assureurs, this is due to “an 8.5% increase in vehicle repair costs.” This trend can be attributed in part to the steady rise in the prices of replacement parts and vehicles in general.
 

Experts therefore predict that auto insurance premiums will rise again in 2025. Premiums are expected to increase by between 4 and 6 percent. 

This increase can be attributed to several factors. First, rising repair costs continue to weigh heavily, with a particularly sharp average increase in the price of replacement parts. For example, the firm Facts & Figures notes an 8.9% increase in the price of side mirrors, rising to as high as 14.3% for luxury vehicles.
 

Labor costs are also contributing to this inflationary trend, with a 6.6% increase in 2023, followed by a further 5.8% rise over the past twelve months through July 2024. Added to this is a government decision: the government will increase the “natural disasters” contribution from 6% to 9% effective January 1, 2025.
 

This widespread increase in auto insurance costs will significantly impact the budgets of French households, which already spend an average of 634 euros per year on auto insurance. Starting in 2025, they will have to pay 672 euros—an additional 38 euros. This amount varies depending on the level of coverage chosen: third-party coverage will cost an average of 568 euros, intermediate coverage 664 euros, while comprehensive coverage will cost an average of 816 euros per year.
 

Whether they are electric or gasoline-powered, newer cars are particularly affected by these increases, as their insurance costs are generally higher due to their higher value and more sophisticated technological components.