Why are auto insurance premiums going up this year?

It depends on the weighting that each insurance company is going to apply

The value of cars may or may not be considered by an insurance company in its calculation. While the price of new cars has increased by 11% since March 2020, the price of used cars has increased at the same time.

The Covid crisis and the war in Ukraine have had an impact on the price of vehicles, among other things because of the slowdown in production, the shortage and therefore the cost of raw materials. This is without counting on the fact that new or recent cars have on board more and more electronic elements and accessories which also cost more.

According to Nevert Degirmenci, “thethe value of cars that increases, whether new or used, counts and depends on the portfolio of the insurer”.

“The pricing policy of each company will play more on the Omnium formulas, which will therefore depend on the value of the new or almost new vehicle. So there will be an additional impact. But again, it depends on the weighting that each insurance company will apply”, she continues.

“During the COVID crisis, there was also a drop in the number of claims, and therefore in the frequency of claims. Then there was a recovery in activities. In the same way, there is a balance to be found for each company between the number of claims and the cost of the average claim.For these different reasons, we cannot speak of an overall increase at the sector level by giving a very precise figure.

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