What are the Criteria that Determine the Price of Automobile Insurance?

Choosing car insurance is a particularly important decision. Especially since in France, the law requires you to take out car insurance. Knowing that there are many insurance companies on the market that offer different policies depending on the characteristics of the vehicle, the profile of the driver and the coverage you wish to take out. It is therefore essential to choose a car insurance adapted to your needs and your budget.

Vehicle-related criteria

There are a number of variables that determine the annual premium to pay to insure your car. One of the first criteria that insurance takes into account is the age of the vehicle, the insurance of a used car will be more expensive than that of a new car.

Another important criterion is the model of the vehicle to be insured, the brand, model and series have an influence, because insurers study the accident rate in each case. The type of vehicle is also important, i.e. the high, mid or low range in which your car falls. The higher the category, the more expensive the repairs and the more expensive the insurance.

Other elements come into play such as vehicle extras. They not only increase the purchase price of the vehicle, but also its insurance, since their replacement or repair represents an additional cost. Another determining factor: the place where your car will be parked, if the car has a place in a garage, it will be more protected than a car which is always parked in the street.

Driver-related criteria

Happy man sitting at the wheel of a car

The driver’s profile will have an impact on the cost of auto insurance, experience as a driver is valued positively. So the more seniority you have, the better. It is in particular because of this criterion that some young drivers struggle to insure their vehicle or at least pay dearly. Depending on the offenses committed, the claims accumulated and the points you have on your driver’s license, you will also pay more or less for your car insurance.

Another important criterion for the insurer: your city of residence. Some cities have a higher accident rate, which can influence the car insurance premium of those who live there. Your profession can also play a role in the price of auto insurance, if you use your vehicle for work-related travel. Professional drivers, for example, are more likely to have an accident because they are on the road much more often.

Criteria related to the desired coverage

Person looking at data, having a meeting

There are different types of auto insurance on the market and a large number of insurers. As such, we recommend that you choose a known insurer, because the procedures and possible remedies are often simpler. For example, you can inquire with an insurer such as MAIF. Each car insurance contract has its specificities, advantages and disadvantages.

Third-party car insurance

This is a basic insurance, and also a compulsory civil liability insurance. This is also the minimum coverage required by law. It covers damage caused to third parties in the event of an accident, in addition to the driver and the vehicle itself. However, it has limits in terms of the amounts covered by the insurer and the context in which the accident occurs. At the beginning of the year, the new law on the assessment of damage caused to persons in traffic accidents came into force.

All-risk car insurance

This is the most comprehensive insurance but also the most expensive. There is also comprehensive insurance + deductible. It includes the same guarantees as all-risk insurance, but the contracting party participates in the financing of expenses up to a certain amount in the event of a claim. Once this amount is exceeded, the company pays it. With this type of insurance, comprehensive insurance is cheaper.

Each insurance company assigns a value to each variable. This is the cause of the different price fluctuations between insurers for a premium with the same characteristics. The most important thing is to be clear about your needs so that you can compare different quotes. Online insurance comparators can make it easier for you.

Scroll to Top