Car and home insurance: Prices expected to rise in 2020



Insurers will seek to offset the rising cost of auto repairs or the increase in burglaries.

Premiums for home and auto insurance are expected to increase in 2020. The consulting firm Facts -Figures estimates that the increase could be between 1 and 2%, when the actuarial firm Addactis expects an increase of between 1.5 and 2%, reports Le Parisien.

However, the  forecasts inflation of between 1.3 and 1.4% in 2020. This increase should therefore weigh on the wallet.
 
The cost of car repairs up 4.8%

Two main factors will have an impact on the price of car insurance. First, the increase in the number of deaths on the roads. After a historic decline in 2018, 2,133 people have been killed since the beginning of the year, 35 more than in the same period last year. Second, the sharp increase in the cost of auto repairs projected by insurers in 2020 (4.8% on average).

For home insurance, it is mainly the increase in burglaries, estimated at between 5 and 10% this year, that justifies the increase in rates. The other claims covered (fires, water damage, civil liability, etc.) do not show significant differences from last year.

Another parameter may lead to an increase in premiums: negative interest rates. These reduce the returns on insurers' investment portfolios. Professionals are therefore tempted to recover the shortfall by increasing their clients' contributions.

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