French to face steep rise in insurance costs

It's been an expensive year for insurers in 2016, and we're going to feel the pinch next year. 

 

The average cost of car insurance is going to shoot up from 0.5 percent to 2.5 percent for 2017, and from 1 percent to 4 perfect for home insurance, reported Les Echos newspaper on Wednesday. 

 

These hikes are a result of the flooding in spring and the rising cost of car repairs, the paper reported.

 

Jean-Marc Willmann, the head of Maif insurance agency, said that car repairs costs had risen 2 percent alone. 

 

The French will also see an increase in the “terrorist tax”, which the government decided to raise from €4.30 to €5.90 from January 2017.