This is to be expected: 2019 will mark a slight increase in rates in the auto insurance sector. The consulting firms report an increase of between 1% and 2% in tariffs, which is a lower trend than the increases known in recent years. Focus on the various reasons for this increase, but also on the points that should reassure motorists.
A slight increase expected
the appraisal firms agree to forecast a slight increase in car insurance rates for 2019, in the order of 1 to 2%; the research firm Facts and Figures, for example, plans an increase of this order, which is less significant than in previous years.
This slight increase is mainly due to the increase in vehicle repairs: Prices for labour, spare parts (+2.3%) and windscreens (+2.5%) are still rising steadily, which necessarily has an impact on premium rates.
But no reason for a sharp increase
There is no reason for motorists to worry too much, as you have understood: there are many reasons for a very controlled increase in car insurance rates.
First, it should be noted that the weight of major bancassurance players is increasing; these companies are further increasing competition in an already very closed sector and are announcing a relatively aggressive pricing policy for 2019. This takeover of major players encourages mutual and general agents to play as fair a role as possible in their range of rates, and not to propose too substantial an increase in car insurance rates.
The various safety measures taken in recent years in terms of legislation: a total ban on mobile phones while driving, protective measures for pedestrians, the change from the speed limit to 80 km/hour. We can therefore expect an improvement in the claim’s ratio. Moreover, in the unconscious of motorists, this measure should reduce the number of road accidents, which is logically irreconcilable with an increase in fares.
The mobility of insured persons from one insurer to another, very favoured by the Hamon law. This legislation allows greater flexibility in insurance changes by allowing policyholders to terminate their contract and change car insurance without any justification, provided they have been under contract for at least one year with their current insurer.
Well informed and in high demand, policyholders are becoming more and more fickle and are assiduously taking advantage of the benefits offered to them.
To retain their beneficiaries, insurers are therefore required to have a very attractive pricing policy.
Very satisfactory financial results for the insurance sector: provisions represent 2.16 times their turnover and allow insurers to calmly consider a very controlled increase in the rates applied for car insurance.
In short, don’t worry too much about your car insurance in 2019! Don’t forget that taking out insurance is a legal obligation that will save you a lot of trouble and think about making a quote study as soon as you buy your vehicle so that you can take to the road with peace of mind.