increase or moderation of prices in 2022?

– published on

The consulting firm Facts & Figure predicts an increase of between 0.5 and 1% in the rates charged by car insurance. This is surprising news given the much less dense car traffic since the successive crises due to Covid-19.

Despite the sharp drop in claims in 2020 and the reduction in the number of bodily accidents by 20%, the “great tariff moderation on the scale of 2022” (Facts & Figure) doesn’t seem to be to everyone’s taste. There are huge disparities in the policies of auto insurers. Some want to freeze their prices, others to increase them. How to explain these differences?

The problem of overhead

The car insurance premium has not experienced an overwhelming increase between 2012 and 2020: there is an increase of 2.40€ per year for a average price of €434 in 2020.

However, insurers believe that they will have to absorb additional costs due to their other branches, which are not specialized in automobiles. The risks related to the automobile have drastically decreased, due to the low circulation of vehicles and the drop in claims; on the other hand, many insurers who also cover business operations have had to compensate for their losses following the pandemic. It is with this distribution of costs that they justify theincrease between 1 and 2% expected for 2022 on their car insurance contracts.

Some, like Matmut, GMF or Suravenir had already frozen their prices in 2021 but have not announced that they would renew this experience. La Maif, for its part, has indicated that it will freeze its rates in 2022 for the second consecutive year, in addition to having reimbursed an overpayment to its customers last year.

The soaring price of repairs and spare parts

Insurers’ prices are torn between the drop in the number of car accidents and the rise in the price of car repairs, but more particularly of spare parts.

The auto repair market saw its prices increase by 6.7% in 2020.

The phenomenon of increasingly expensive spare parts is explained by manufacturers no longer having a monopoly and facing more competition. The Climate and Resilience Law left free rein for independent repairers. The fact that SUV type vehicles are increasingly sold (3.2% increase in sales between 2019 and 2020) is also an explanation. These sales lead to strong demand for replace extremely sophisticated parts and sometimes difficult to produce.

#increase #moderation #prices

Be the first to comment

Leave a Reply

Your email address will not be published.