Car insurance: what are the rules regarding the amount of the contribution?

The insurance contribution is made up of the insurer's rate and taxes levied on behalf of the public authorities.

The price of car insurance is not regulated, but freely set by insurers.

Insurance companies use statistics on the number and cost of accidents to set their rates. They take into account vehicle-related criteria as well as driver-related criteria.

The vehicle-related criteria the most important ones used by insurance companies are

• Engine power and maximum speed
• Make and model: existence or absence of safety and protective equipment
• Use of the vehicle: private or professional use
• Geographical area of traffic or garage: rural or urban area
• Number of kilometers traveled annually
• Number of drivers authorized to use the vehicle: one person or more.

The criteria for drivers the most important ones used by insurance companies are

• Age: minor, major, young, adult, senior, etc.
• Driving learning mode: driving school or early driving
• Experience: novice or experienced
• History: number of accidents already had
• Number of kilometers traveled annually
• Number of drivers authorized to use the vehicle

The insurer must inform you of the amount of the contribution before taking out the contract.

The bonus-malus (reduction-increase coefficient) legally modifies the amount of the contribution according to your driving behavior from one year to the next: reduction in the absence of responsible claims or increase in the event of responsible claims.

One overprime can be applied for young drivers (less than 3 years of license) or after a long period without insurance (more than 3 years).

The car insurance contribution includes:

• the share corresponding to the insurer's rate, which pays for the risk cover,
• and statutory taxes and contributions.

These taxes may vary regardless of the insurer's rate and affect the total amount to be paid.

Once the quotation is accepted, you must pay the contribution on the dates specified in the contract, i.e. the dates on which the payment is to be made.

We have to distinguish the deadline main and deadlines secondary :

• The main maturity is the date you are covered. This is the only deadline to consider when terminating the contract.
• The contract may provide for a splitting of the contribution (monthly, quarterly or semi-annual). Each interim payment then constitutes a secondary maturity. Monthly or quarterly splitting is an easy way to pay, but it can lead to additional costs or increased risks in the event of a default.

Periodically, you will receive a notice of payment indicating the amount of the contribution to be paid and the date from which you must pay it.

You can pay your contribution by direct debit, transfer, check, credit card or cash, depending on what is provided in your contract.

You must pay your contribution in the 10 calendar days on the date indicated on the notice of maturity.

After that period:

1. The insurer may send a formal notice by registered letter.
2. You then have 30 days to pay.
3. If you do not pay within 30 days, the insurer can terminate the contract 10 days after the expiry of this period.

In case of non-payment, the contract may be suspended then terminated, and the insurer may continue to pay the contributions due as well as the collection costs.

If payment is made within the period of formal notice, the contract may resume its effects for the future, the day after the day of payment at noon.

The insurer has the right to increase the amount of the car insurance premium in the cases provided for by the contract and by law.

These include:

• Application of an indexation clause in the contract
• Application of malus
• Increase in the amount of taxes
• Addition of a new mandatory guarantee imposed by law
• Worsening of insured risk.

You can request a reduction in the insurance contribution when the insured risk decreases. For example: reduced use of the vehicle or reduced number of drivers,

If the insurer refuses your request, you can decide to terminate the contract.

The amount of the contribution may be disputed in the event of an error in the information taken into account by the insurer, in particular in the event of incorrect application of the bonus-malus or inaccurate information concerning the vehicle or the driver.

If no agreement is reached, the insured person retains the option of terminating the contract and taking out insurance with another insurer.