Bad news to start 2025. Two essential expenditure items for the French will see a significant increase.
In recent years, the French have faced an increase in many of their expenses and, inevitably, their finances and their purchasing power have taken a hit. Although inflation is falling little by little, the fact remains that certain portions of household budgets continue to increase. From January 1, 2025, this will be the case for two essential expenditure items in the lives of the French.
On October 1, 2024, the specialist firm Addactis indicated that it estimated that the increase in car insurance would be 6% at the start of next year, and 8 to 10% for home insurance. Another specialist in the field, the firm Facts & Figures, expects similar figures: 4 to 8% for automobile contracts and 10 to 12% for home comprehensive insurance.
“It’s not to earn more money, it’s to barely keep up with the increase in what we reimburse”declared to AFP Adrien Couret, general manager of Aéma, a mutual group to which Macif notably belongs. Labor, building materials for homes and parts to repair vehicles, whether new or used, have all seen their prices increase.
In addition, there have been numerous climate disasters in recent months, including floods in several regions. To deal with this problem, a decree published in the Official Journal on December 28, 2023 provided for an increase in the additional premium, which finances the natural disaster regime, with an increase of 12 to 20% in home insurance contracts. That “represents an average annual increase of 17 euros” for individuals, according to Florence Lustman, president of France Assureurs, the main professional representation organization for insurance companies.
This increase in prices risks being all the more difficult for subscribers to absorb as an average increase of 7.2% in home insurance has already been estimated by the Assurland comparator for the year 2024. This is the most important since 2010, and it will not be the same for everyone. According to Cyrille Chariter-Kastler, president of Facts & Figures, it could rise up to 15% for houses and pavilions, which are more exposed to climate risks than apartments. The French will discover this in the last quarter, a period when insurers generally transmit pricing conditions for the following year.