Car insurance: why such price differences?

In France, insurance companies set their own rates. This is the case for car insurance, as there is no legally mandated rate schedule. However, standard parameters do exist. These are used to offer competitive rates on the market. They take into account factors such as vehicle usage, mileage, and driver. Other criteria are less obvious and vary from one insurer to another. Here’s a look at the reasons for these price differences between car insurance policies.

Car Insurance: The Geographic Factor Behind Price Differences

Insurance is among the most significant household expenses. Recently, there has been a trend of rising car insurance prices. Geographic location could explain the differences in rates offered by insurance companies. According to a 2020 study, prices in Paris are the highest. Brittany, on the other hand, has the lowest rates. The gaps are widening between the Île-de-France region and other regions, with a difference of up to €160 in insurance premiums. These differences are linked to insecurity in cities. The Paris region has the highest insurance premiums. It is closely followed by the PACA, Auvergne-Rhône-Alpes, and Hauts-de-France regions. In these regions, car insurance is quite expensive, ranging from €636 to €677. However, a peak is observed in Marseille, where the average insurance premium reaches €808. Insurance companies attribute this price to the high rate of vandalism in the city. Furthermore, residents of Marseille tend to drive powerful and newer vehicles. In Brittany, acts of vandalism are less frequent. In fact, the crime rate is lower than the national average. Besides crime, the prices charged by mechanics also explain the price differences. Brittany has a price 2% lower than the average. Moreover, the insurance premium will also depend on the amount the insurer must pay out to the client in the event of a claim. Before choosing an insurer,

compare several car insurance quotes online

in order to find the best offer and benefit from the best coverage at an attractive price.

Several criteria influence the price difference between insurance policies. The make, a determining factor in the insurance cost Insurers may use the vehicle’s make to determine their client’s insurance premium. You will notice that the insurance premium for a

Citroën remains lower than that of a Peugeot . There can be a price difference of up to €100 between insurance for vehicles of these two brands. Insurance companies have their own criteria for setting premiums. They also take into account the specific features of the different models. For example, while moving upmarket for Toyota doesn’t impact the price of the insurance premium, this isn’t the case for Peugeot.

For Seat vehicles, the average insurance premium is €675 compared to €598 for Volvo.

This can be explained by the attitude of Volvo drivers. A study has shown that Volvo drivers are more cautious. Furthermore, the model doesn’t attract thieves, unlike vehicles from more prestigious brands. Other factors influencing car insurance price differences: The customer profile influences the insurance premium. Insurers also take into account the vehicle model, its use, and its market position.

Generally, convertibles and sports cars have higher insurance premiums, averaging around €730. Car insurance for sedans also remains quite expensive, reaching up to €714. The most surprising finding is the premium for city cars.

Their insurance rates are as high as those for family cars.

The reason is simple: the accident rate for these city cars remains high in urban areas. Based on mileage, the premium varies from €508 to €741. Vehicles with low mileage(under 2,000 km per year) benefit from a lower premium, while drivers who drive a lot pay more for their insurance. Finally, the insurance premium for

young drivers

is always higher, averaging around €1,060. Over the years, this rate can decrease by half, dropping to as low as €403 between the ages of 56 and 65. From age 66 onward, the rate starts to rise again, reaching €842.