2023-10-17 07:00:25
A tax exemption which will end
Since 2021, an advantageous measure has been in place for owners of electric cars: exemption from the “special tax on insurance agreements”. This exemption, which offered substantial reductions of 25% for third-party insurance and 15% for comprehensive insurance, will unfortunately not be renewed.
Direct consequence: an increase in the price of car insurance premiums associated with an electric car. However, this government decision is a hard blow for the sector and for the industry. It risks slowing down the adoption of electric cars in Europe, where France is struggling to position itself as a leader.
Car insurance: electric cars will pay more
The Assurland comparator revealed that the average premium for insuring an electric car is currently 563 euros, compared to 645 euros for a thermal car. Until now, therefore, having an electric car allowed you to save money. Insurance actually cost almost 80 euros less per year. But with the end of the exemptions, this difference might well fade, or even be reversed.
Historically, electric car insurance was cheaper due to the perception of lower risk. But the situation has changed at this level too. With repair costs rising and tax benefits ending, this trend may change.
Electric cars more expensive to repair
Several elements contribute to this increase. The post-Covid-19 economic recovery, the increase in car use by the French, and above all, the increase in the cost of car repairs. Indeed, electric cars, although less intensive in maintenance, can be expensive to repair, in particular because of the complexity of their batteries.
Data from the SRA (Automotive Safety and Repairs) confirm this trend. The cost of spare parts increased by 9.7% in 2023, and that of paint by 8.1%. These increases reflect the challenges repair shops face with the rapid evolution of automotive technology.
What solutions can be found to reduce the price of car insurance for an electric (or non-electric) car?
Despite this announced increase in the insurance premium, alternatives exist. Per-kilometer insurance, for example, allows you to pay only for the kilometers actually traveled. This is an interesting option for those who only use their vehicle sporadically. Additionally, since June 2023, online insurers must offer online cancellation in just three clicks, providing more flexibility to consumers.
In 2024, the government would also consider offering tailor-made insurance for owners of electric cars.
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