Tips to Reduce Your Car Insurance Premiums

The price of car insurance has increased by another 35% in 2023 according to insurers. You have to pay 630 euros on average to insure your vehicle, compared to 611 euros last year. Good news: some good practices can reduce the insurance premium.

Year after year, the price of auto insurance premiums continues to rise under pressure from the price of spare parts, the cost of repairs and acts of vandalism. Nevertheless, this compulsory contract remains essential if you drive a car.

But being protected is expensive. According to the comparator Assurland, you have to spend 630 euros on average to insure your vehicle, compared to 611 euros last year. Another study by Meilleurtaux Assurances also highlights the large differences in car insurance prices depending on where the vehicle is driven. We explain how to reduce the bill.

1 – Play the competition

Insurers have their own pricing criteria and business strategies. Prices therefore vary greatly from one insurer to another depending on your age, car model or place of residence. Similarly, as a study by UFC-Que Choisir pointed out, customer loyalty is rarely rewarded in car insurance.

Two factors that argue for looking elsewhere… According to the broker MeilleurAssurance, consumers who have compared their contract have realized an average saving of 340 euros equivalent warranties!

Since 2015, the Hamon law has also allowed you to cancel your car insurance at any time when your contract is over a year old. Your new insurer takes care of the termination itself. Enough to make the competition play more easily and more frequently.

2 – Reduce the risk level of your vehicle

All car models are not equivalent in the eyes of insurers. A reasonable choice significantly reduces the cost of insurance. What to avoid:

• A powerful vehiclewhich achieves spectacular accelerations: it is statistically the cause of more numerous and more serious accidents.
• A brand new carfull of electronics and high-end options: repairs will be more expensive in the event of an accident.
• An easy car to steal: Motorists’ associations publish blacklists each year which are interesting to consult.

To reduce the insurance premium for a model particularly exposed to theft, you can claim an anti-theft device with which the car is fitted. Better: you can park it in a garage, if possible a closed box. The premium will be lowered by most insurers.

The Toyota Prius is the most stolen car

3 – Reduce the risk level of your driving

Preserve your bonus. The reduction-increase coefficient, better known as the bonus-malus, has a considerable impact on the price of your insurance. The same insurance at 600 euros per year will cost 300 euros with a bonus of 0.50 and up to 2100 euros with the maximum penalty, ie 3.5.

Each year without an at-fault accident multiplies your coefficient by 0.95. In 13 years, you reach the maximum coefficient of 0.50. On the other hand, each accident multiplies your coefficient by 1.25 (for a fully responsible accident) or by 1.125 (for a partially responsible accident).

The basic rule – and this is indeed the purpose of the bonus-malus – is therefore to avoid responsible accidents by adopting a driving respectful of the Highway Code and other users. This is particularly true for young drivers, who will have great difficulty securing a correct rate with a coefficient greater than 1.

Abstaining from declaring all responsible minor claims also preserves the bonus. If you crease your bumper when taking the car out of the garage, your insurer may pay you financial compensation, provided that you have taken out an all-risk policy. But this will also result in the application of a penalty, and therefore in a significant increase in your next bonus. Not sure it’s worth it for a small scratch.

Finally, be aware that the penalty applies to the insured vehicle regardless of the driver at the time of the accident. It is therefore advisable to lend your car only to a trusted person. Moreover, insurers often provide reductions in the event of exclusivity: if the insured agrees that the car will only be driven by himself and his spouse, the premium is lower.

4 – Choose a weaker but less expensive coverage

Adapt the guarantees to your needs. Apart from the civil liability guarantee, the only compulsory one, auto insurance contracts offer numerous guarantees. The idea when you choose your insurance: take out only those you will need.

For example, if you only make short trips around town, you may not really need assistance. If you take one, make sure it covers you ds le premier kilomtre. Assistance that would only intervene beyond 50 kilometers from your home would be totally useless. Likewise, if you drive lightly, you probably won’t need a replacement vehicle when your car is immobilized in the garage.

Also find out what exactly the warranties cover. Example with the driver’s guarantee, one of the least known. It is she who takes care of your medical and hospital expenses in the event of injury in an accident, responsible or not. Some contracts are much more generous than others in terms of guarantees (they compensate you in the event of permanent or temporary incapacity, cover your loss of income or even your funeral expenses) and in terms of guarantee ceilings (up to ‘ one million euros for certain insurances). If you already have high-coverage life accident insurance, you may not need to have a very protective driver’s warranty.

Change your guarantees according to the age of the vehicle. Some guarantees are ideal for a new car, but are justified much less 2 years and 30,000 kilometers later. Up to 2 years, your car will be better protected by all-risk insurance, the only cover for damage that you may cause to the vehicle yourself. Do not hesitate, if the vehicle has value, to choose a reimbursement option new value.

As soon as the car is no longer listed on the Argus, generally after 7-8 years, third-party insurance is sufficient. It mainly protects third parties from accidents you may cause, although it also includes, most of the time, a driver’s guarantee and a defense (which helps you turn against the person responsible for an accident). This type of insurance does not cover damage caused to the vehicle, unless caused by a third party.

Between the all-risks and the third party, there is a wide variety of intermediate contracts, generally referred to as extended third party or third party plus. In addition to civil liability, these policies generally cover glass breakage, theft and fire. Warranties that can be interesting for a used vehicle that still has a little value.

Play on franchise level. The deductible is the amount that remains your responsibility after a claim. It evolves from simple to double according to the contracts. Whether it is a flat or proportional amount, the higher it is, the more your insurance premium decreases. You can save more than 20% by choosing a high deductible. Be careful, however, not to choose an amount that you would not be able to pay. From 500 euros, you lose the benefit of paying less for your insurance at the first accident.

Car insurance: save money