Insurance rates: limited rises in 2023, sharp increases in 2024

Facts & Figures forecasts a sharp rise in home and car insurance rates of between 6 and 8% in 2024. The main reasons for this are the explosion in the cost of spare parts and weather-related claims.

A contained increase in 2023

Despite tensions in the sector, the announced rate increase is likely to remain moderate in 2023. According to Assurland's projections, insuring a vehicle in 2022 will cost an average of €630, an increase of around 3% on the previous year. The trend could continue in 2023, with a rate increase of 2.5% to 3%, according to the comparator.


Last September, insurers told Bercy that they would exercise restraint, a promise that seems to have been kept, despite the sharp rise in the price of spare parts and repairs, which have risen by 10% and 3.5% respectively over the past year.

In the case of home insurance, Facts & Figures reports that premiums have already risen by between 0.5% and 1% in 2022. In 2023, the French can expect to pay a little more. Premiums could rise by as much as 8%, with a surcharge of almost 10 euros for natural catastrophe coverage, a 3% surcharge to compensate for the increased cost of materials and labor, and a surcharge of 3% to 5% for those with properties highly exposed to climatic risks.

Several factors explain this trend in home insurance rates:

  • a greater number of claims (burglary, water damage, fire, etc.),
  • an increase in housing construction costs,
  • higher taxes.


Sharp rises expected in 2024

Following the expiry of the rate moderation agreement reached with Bercy, insurers could return to " sharp increases " to make up for their losses. Cyrille Chartier-Kastler, co-founder of Facts & Figures, anticipates rate increases of 6% to 8%.

Among the factors likely to explain this more violent rise in prices is the pressure insurers are putting on salaries. For example, AXA and Groupama agreements call for salary increases of between 4% and 5% from 2023. In addition, insurance companies have to cope with rising energy prices and inflation. " The price of spare parts is skyrocketing ", reports Cyrille Chartier-Kastler in Les Echos. He estimates that the average price of a rear-view mirror will have risen by 6% between 2021 and 2022.

The extent of price increases will depend mainly on competition. The introduction of aggressive pricing policies in the coming months could shake up the home and car insurance market.