what impact on auto insurance?

The price of gasoline is reaching unprecedented levels. A few weeks before the presidential election, the question of purchasing power is becoming a major issue. However, if the household budget suffers, the rise in fuel prices could have a positive impact on their car insurance premium in the medium term. Insurers could indeed take into account, in the coming months, the decline in the number of claims caused by inflation in gasoline prices.

Rebate to come

For almost two weeks, seeing fuels displayed at more than 2 euros per liter in most service stations has become usual. If prices remain so high, the impact on household purchasing power is already expected to be significant: with 12,000 kilometers traveled per year on average, the gasoline budget represents more than 1,500 euros per year and per household.

To limit damage, a few weeks before the presidential election, the Prime Minister, Jean Castex, announced a “fuel discount” 15 cents per literfrom April 1, for a period of four months.

This measure was calculated at two billion euros. It will be financed by the budget of the Ministry of Ecological Transition. The government claims that this amount corresponds to the additional tax revenue that would have been generated by the increase in the first half of 2022. As a reminder, state taxes (TICPE, VAT) represent 60% of the final price of the SP95 and 56% of that of diesel.

However, given the levels reached, the liter is still likely to remain around 1.80 or 1.90 euro despite the fall of 15 cents. On the fuel side, the bad patch is therefore likely to continue for motorists. On the other hand, this surge in prices at the pump could have a positive impact on other items in the car budget, and in particular on insurance.

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Good news for auto insurance?

Rising fuel prices generally have a positive effect on insurance prices, as they lead to lower claims, for two main reasons. First, to save fuel, motorists tend to ” lift the foot “. This technique, which is increasingly practiced, saves an average of 10% on its consumption, by reducing its speed on the motorway from 130 to 120 km per hour.

Then, always for the sake of economy, some motorists will be forced to postpone certain journeys: in a word, to drive less. Gold, who says drop in speed and reduction in travel, says drop in the number of accidents and claims. This phenomenon has been well observed during successive confinements: in 2020, the drop in mortality on the roads of France was more than 20%.

Just ten years ago, in 2012, this correlation between higher fuel prices, lower claims, and moderation in insurance prices had already been noted. That year, due to tensions around the Strait of Hormuz in particular, the price of SP95 exploded and reached a record of 1.67 euros per litre.

Travel is slowing down, and the number of kilometers traveled per year has become the lowest in 20 years. The Road Safety report is thus marked by a drop in all the indicators compared to the previous year (2011): – 7.1% for the number of bodily accidents, – 6.6% for the number of people killed and – 6.8% for the number of injured. Result: the following year, the increase in auto insurance premiums had been rather moderate, around 1.3%.

It is therefore possible that insurers will take into account the good figures from Road Safety to establish their new rates in the next half-year or next year. In this context, the stability of car insurance prices noted by Assurland.com for several months should continue. However, to be sure to benefit from it, and to see if the price of your contract is still interesting, it is advisable to compare the price of auto insurance online for free.

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