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French households make the car their second largest expenditure after housing. All costs that have a significant impact upon the budget of motorists are: maintenance, insurance, purchase. The auto insurance premium is relatively expensive. It is determined based on the criteria related to the vehicle and the driver’s profile. But how can you get car insurance at a lower price? These are the top 10 golden rules to lower your auto insurance costs.
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Auto-priced insurance based on your profile
Palmares of auto-insurance cheaper: Most vehicles sold
1- Driving well pays off
The bonus-malus system is used in auto insurance. It rewards good drivers and punishes those who cause an accident. If you don’t cause an auto accident for a year, you will receive a “bonus” which lowers your auto insurance premium by 5%. This principle is renewed each year without an accident, until you reach a maximum bonus of 50% after 13 years of driving without causing any kind of accident (to be noted: A driver who has been receiving a bonus 50 for at minimum 3 years will not face a penalty for his first accident).
| Year without any responsible accident | Calculation of the coefficient | Bonus |
| Referring year | 1 | |
| 1. | 1 x 0.95 | 0.95 |
| 2nd year | 0.95 x 1.95 | 0.90 |
| Third year | 0.90 x 1.95 | 0.85 |
| Fourth year | 0.85 x 0.95 | 0.80 |
| 5th year | 0.80 x 1.95 | 0.76 |
| 6th year | 0.76 x 0.95 | 0.72 |
| 7th year | 0.72 x 0.95 | 0.68 |
| 8th year | 0.68 x 0.95 | 0.64 |
| 9th year | 0.64 x 1.95 | 0.60 |
| 10th Year | 0.60 x 0.95 | 0.57 |
| 11th year | 0.57 x 0.95 | 0.54 |
| 12th year | 0.54 x 0.95 | 0.51 |
| 13th year | 0.51 x 1.95 | 0.50 |
If you are found responsible for an accident, the penalty is 25%. This will affect your car insurance price. The penalty is not per year, but calculated by responsible loss. In other words, if there are two accidents that you are responsible for in the same year, you will feel it pass on to your next annual contribution.
Notice: The penalty is also limited and cannot exceed 350% the basic premium rate.
And what if you choose eco-driving?
Eco-driving is a highly beneficial option. It has a direct effect on the environment (reduction in greenhouse gas emissions), but also on your automobile expenses (fuel and insurance, limitation of accidents risks, etc.). To achieve this, the driver must drive responsibly and with care (progressive acceleration; driving at a low speed; limitation of sudden braking; anticipation). Daily eco-citizen driving will lower your chances of being sued. This will result in a decrease in your auto insurance premium over the long-term.
2- Third party insurance with privilege rather than all risks
French law requires that your vehicle is insured with civil liability. This means that you must have at least one third-party insurance in order to legally circulate. This entry-level policy guarantees third parties compensation in the event that your vehicle is involved in an accident. Basic insurance is therefore less expensive than all-risk.
If you have a low value vehicle such as a used car that is more than 7 years old, insurance to a 3rd party may be an option. This may seem like a good deal, but it can be costly if you have to make major repairs or replace a vehicle that was purchased on credit. In this instance, you would end-up paying the credit for a vehicle you no longer own and being forced to buy a new one.
3- Keep your vehicle safe in a garage, rather than on the street
You can save money on your car insurance by parking your car in a garage. Insurance companies take into consideration the space your vehicle has to park. Your premium will rise if you park your car in a safer area (lower risk of theft or vandalism ). It is better to park your car in a garage than on the street.
4- Get a vehicle with low engine consumption
Sports car, large sedan, offering a powerful car at an affordable price. Motorization is a major factor in the calculation for the auto insurance premium. It presents greater accident risks. Insurance is more expensive if the vehicle is more powerful. Young drivers are more likely to be in financial trouble than those with experience. An experienced driver and a powerful engine don’t mix well, and can quickly increase your auto insurance bill. Some insurers will refuse to insure young drivers driving powerful vehicles.
It is better to choose a smaller cylinder capacity to save money.
Palmares: The cheapest cars to insure
5- Avoid cars among the most robbed models in France
Palmares of 2018’s Most Stolen Cars (Auto Plus)
| Ranking | Model |
| 1 | Renault Clio IV |
| 2 | BMW X6 |
| 3 | Smart Fortwo |
| 4 | Range Rover Sport / Land Rover Range Rover |
| 5 | BMW Series 6 |
| 6 | Renault Mégane IV |
| 7 | DS 3 / DS 3 Cabrio |
| 8 | Renault Twingo I |
| 9 | Land Rover Range Rover Evoque |
| 10 | BMW X5 |
Did you know that? The city Renault Clio IV is a top-selling car in France. However, it also ranks first on the list of most stolen cars. It is closely followed then by the BMW X6 and the Smart Fortwo in third.
For example, you can install an electronic alarm system or a mechanical anti theft device to protect your vehicle and reduce the chance of theft. This equipment can be used by some insurance companies to lower your car insurance.
6- Increase your deductible
Unless an insured is identified as a responsible party, the deductible is the amount the insured is still responsible for in the event that a claim is filed. In such cases, you do not need to be franchised because it is his insurance that will reimburse your damages.
You have the option to choose from several deductible amounts when you purchase auto insurance. The higher your deductible, the lower your insurance will cover and the more affordable your auto insurance. It may be worth renegotiating your deductible to lower the cost of your auto insurance.
However, you should be cautious about determining the amount of deductible you are able to afford financially in case of a claim.
7- Only take leisure trips
Auto insurance premiums are affected by how much you use your car. A reduction of 30% in the cost of your car to get you to work could save you about 30%. Most insurers offer tariff reductions to motorists who drive only for pleasure and their spare time. This should be mentioned to your insurer!
8- Ensure is a secondary driver
Are you a young driver, or an occasional driver? Have you ever thought about becoming a secondary driver for a loved ones contract? This can be a great compromise to lower your auto insurance bill if you don’t drive frequently. Attached to a loved-one’s contract, you get the same benefits as him, but at a lower price, than if your main driver is insured.
This is especially advantageous for young drivers whose premiums tend to be high. It also allows them the opportunity to accumulate bonuses. The secondary driver will actually benefit from higher prices if he wants to insure himself on his own vehicle.
However, be careful when operating the vehicle. You should not be driving more than your main insured as a secondary driver and never for your commute or home-school trips.. If you did not, you could be considered the main driver, and therefore be charged with fraud when you purchase insurance. A fault that could lead to serious consequences in the case of a responsible car accident can have severe consequences. Your insurance company may turn against you.
9- Subscribe tailor-made auto insurance
A driver may be tempted to purchase a “classic” package of auto insurance in order to save money. It is a great way to save money on your premium by choosing a guarantee that suits your needs. Card insurance allows you to modify or remove guarantees so that you only keep the ones that are truly necessary. A small rouleur, for example, will not need the same guarantees as a driver who travels many kilometers.
You can get insurance per kilometer for less
Insurers offer insurance formulas per mile more often. This can be very lucrative for drivers who travel a lot (less than 5,000km per year). Two types of offers will be made depending on your mileage.
- Based on the estimated mileage of your vehicle, you will receive an annual kilometer allowance. Be aware that exceeding the limits may result in a financial penalty. Your insurance might also refuse to cover you in the event of a loss.. Some insurers may also reduce your insurance if you travel less than the estimated mileage.
- “Pay as you Drive”: This formula calculates the miles traveled each year using an electronic box in your car.
It is a good idea: Insurance per kilometer can offer a unique solution for vintage cars who travel only a few kilometers per year.
Self-connected insurance
You can lower your auto insurance bills by installing a connected case in the car. The connected case analyzes your driving habits and applies a discount or premium depending on the risks you have taken. Your auto insurance premium can be reduced by being prudent driver, up to 50% depending upon the company.
Our advice: Don’t reduce your insurance coverage to save money. You may lose out in the long-term if you are involved with a responsible accident and could end up paying a steep price. You can live without certain guarantees, but others such as the driver guarantee are essential..
10- Compare auto insurance for good savings
It is a good idea to take regular stock of your needs and compare the various offers on the market. This will help you save money quickly. The Hamon law makes it easier to change your insurers starting from the first anniversary. Auto insurance comparators are a quick way to get quotes from several companies. You will be able compare the offers and choose whether to renegotiate your existing contract with your insurance company or change to a contract that suits you better and is less expensive.
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