Car insurance is a contract that transfers all or part of the financial risk associated with the use of a vehicle to an insurer. The only legal obligation is liability coverage, which covers damages caused to others. Everything else (theft, glass breakage, damage to the vehicle, assistance) is a matter of balancing the desired level of protection with the available budget.
Deductible and premium: two mechanisms that determine the actual cost
The annual premium is the amount paid to the insurer. The deductible is the amount that remains the responsibility of the driver after a claim. These two elements work in tandem: a high deductible lowers the premium, and vice versa.
Comparing only the premiums between two quotes can lead to costly mistakes. A contract advertised at 40 euros per month with an 800 euro deductible on collision damage will end up being more expensive, in the event of a claim, than a contract at 55 euros with a 200 euro deductible. The calculation therefore depends on how often the driver is exposed to risk.
For a recent vehicle parked in a densely populated urban area, a low deductible for theft and glass breakage is justified. For an older car with low residual value, accepting a higher deductible allows for a reduction in the premium without taking on disproportionate risk. By comparing the available offers, particularly car insurance on Car Only, it becomes easier to visualize this deductible/premium trade-off on concrete quotes.
Repair costs: why premiums increase even without claims
Between 2021 and 2025, the average cost of repairs after a collision increased by nearly 30%, according to data from the SRA association reported by L’Alsace. Sensors, radars, and cameras integrated into bumpers and mirrors increase the cost of each intervention, even for minor accidents.
This mechanical inflation explains the rise in premiums observed in recent years, including for drivers with no claims. Insurers pass on the increase in the average cost of their compensations across the entire portfolio.
One contractual point deserves attention: the conditions for using reused parts. Some contracts require or offer used parts for repairs, which reduces costs for the insurer but may limit the choice of repairer or the warranty duration on the part. Checking this clause before signing avoids surprises when going to the workshop.
Car insurance for electric vehicles: specific coverage to check
Electric and plug-in hybrid vehicles pose insurance problems distinct from thermal models. The price of specific components (battery, thermal management system, charging cable) and the higher weight of these vehicles increase the cost of claims. Insurers charge for this difference.
Before subscribing, three points must be explicitly included in the contract:
- The coverage of the battery, whether owned or leased, including damages related to a power surge or charging defect
- Coverage for the charging cable in case of theft or damage, often excluded from basic plans
- Assistance in case of electrical breakdown (towing to a charging station or compatible charging point, not just to the nearest garage)
A standard comprehensive contract does not automatically cover these elements. The mention “electric vehicle” in the special conditions is the minimum to require.
Bonus-malus coefficient: how it affects the choice of policy
The reduction-increase coefficient (bonus-malus) starts at 1. Each year without a responsible claim multiplies it by 0.95. A responsible claim multiplies it by 1.25, a partially responsible claim by 1.125. The floor is set at 0.50 (maximum bonus after thirteen years without a claim), and the ceiling at 3.50.
This coefficient directly modifies the reference premium. A driver with the maximum bonus pays half the base rate. A driver with a malus of 1.50 pays 50% more.
The trade-off between policies partly depends on this coefficient. A very experienced driver with the maximum bonus has an interest in taking out extensive coverage: their premium remains moderate even in comprehensive coverage. Conversely, a young driver with a high coefficient often benefits from limiting their coverage to the most useful (liability, theft, assistance) to contain a premium already inflated by the young driver malus.
Cancellation and contract change: what the law allows
The Hamon law allows for the cancellation of a car insurance contract at any time after the first year of subscription, without fees or penalties. The new insurer takes care of the cancellation procedures with the old one.
Since a recent regulatory change, cancellation by the insurer after a claim must now be justified. An insurer can no longer simply cite the number of claims without specifying the reasons for the non-renewal. This obligation to provide justification opens the possibility to contest an abusive cancellation.
- Check the anniversary date of the contract to anticipate a possible premium increase
- Request several quotes in advance, specifying the same level of coverage and deductibles for comparison on identical terms
- Keep the claims history (information statement): this document, which must be provided by the outgoing insurer, conditions the rate proposed by the new insurer
Car insurance rates are expected to continue to rise in 2027, but at a slower pace than in previous years. Changing contracts remains the most direct lever to adjust coverage to the actual budget, provided that offers are compared on identical bases and deductibles are read before looking at the premium.
