Value of a car: the increase in car insurance remains reduced

Owning a car is more and more expensive, and to maintain their car, more and more French people are forced to redouble their efforts. Whether it’s buying a car, running it, fixing it, maintaining it, the bills add up.

The positive point, in 2022, is the price of car insurance: for the period from January 1 to October 1, it only increased by 3%. So it is less than inflation. This constitutes a small break, in the whirlwind of rising prices, because this compulsory insurance is one of the costs that cannot be avoided! In fact, a vehicle should be insured at all times.

Car insurance: special driver protection cover

For many households forced to monitor the smallest costs, comparing prices, to possibly change the telephone operator, energy supplier, or even insurer has become natural. It is then a question of going with the offer that best suits one’s needs, and the best value for money. It is also valid for his car insurance. In fact, due to the Challenge law, you can request its termination at any time after the first year, without having to justify yourself, and without waiting for the next annual deadline.

Direct Assurance is one of the insurance companies that have limited their increases. One of its assets is the special driver protection guarantee, included in every formula for the same price. When the driver of the vehicle is both the victim and responsible in an accident, he is covered by the Driver’s Personal Guarantee from the Tiers Mini formula. In terms of optional guarantees in addition to the formula it chooses, Direct Assurance also offers the option of extending the Loaner’s vehicle (with an available vehicle) to remain mobile, even in the event of an at-fault that accident.

In the face of risks, some car owners choose to rely, by opting for better coverage of climate events. Hail damage, devastating the second half of June 2022, is a sad illustration of the damage that can be done to a car.

Car: why more expensive

As new cars have become too expensive for many households today, more and more individuals are turning to long-term rental (LLD) or rental with an option to buy (known as LOA) formulas. . Between 2018 and 2022, these formulas increased from 34% to 53% of registrations! The electrification of the market should accelerate these phenomena.

At the same time, the used car market remains dynamic, despite increasingly high prices: +20% a year. In order to buy a second-hand car, some individuals do not hesitate to drive several hundred kilometers to find the rare pearl in another region.

The disadvantage compared to new, remains the condition of the vehicle, which may require more visits to the garage. Or, maintenance costs also increase.

Increase in vehicle maintenance costs

According to the Automobile Safety and Repairs Association (SRA), in one year, the cost of spare parts has increased by 10%, and repairs by 3.5%.

In terms of spare parts, the variations in price (+8.7%) and cost (+10.4%) of the basket of parts are “historic” in the third quarter of 2022, and confirm the inflationary trend observed in 2 first quarter of the year. Also in the third quarter, 10 brands applied an increase in spare parts from the SRA basket.

In addition, according to the 6th barometer of car repair prices in France, there was an increase of more than 10% for certain products or parts such as oil or engine parts.

This can also be explained by the increase in the price of raw materials and labor shortage. Moreover, these prices are very uneven from one region to another.

In addition to rising repair costs, the year 2023 should also see the end of fuel rebates put in place by the government and Total. Driving your own car is becoming more of a luxury…

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