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

Verified 13 June 2024 - Directorate for Legal and Administrative Information (Prime Minister)

Your insurer calculates your premium based on the combination of your vehicle criteria and your driver profile criteria, taking into account the likelihood of claims. The insurer must inform you of the amount of the contribution before the contract is signed. We present the applicable rules.

The insurance contribution consists of the insurer's tariff and taxes levied on behalf of the public authorities.

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

When setting their rates, insurance companies take into account statistics on the number and cost of accidents.

On the basis of these statistics, insurers establish criteria relating to vehicles and their use, as well as criteria relating to drivers.

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

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

FYI  

Fares must not take into account the sex of the driver.

Your insurer calculates your premium based on the combination of your vehicle criteria and your driver profile criteria, taking into account the likelihood of claims.

For example, the most powerful, the least equipped and the ones that drive a lot will have the highest rates.

Similarly, younger, less experienced drivers and those with the greatest number of previous accidents will have the highest fares.

In all cases, the insurer must inform you of the amount of the contribution before the contract is signed.

Due dates

Once you have accepted the quote, you will have to pay your contribution at the deadlines stipulated in the contract.

These are the dates on which you have to pay your dues.

A distinction must be made between primary and secondary maturities:

  • L'due date principal is the date up to which you are covered. This is the only relevant date for terminating the contract.
  • The contract may provide for a contribution split (monthly, quarterly or half-yearly). Each of these interim payment installments is a maturity secondary.

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

Method of payment

You must pay the contributions in cash.

Depending on the contract, you can pay by direct debit, transfer, check, credit card or cash.

You have ten calendar days from the date on the notice of due date to pay your contribution.

After this time, the insurer can send you a registered letter of formal notice.

In this case, you must pay within 30 days of receiving the letter of formal notice.

If you do not pay within 30 days of the notice, the insurer has the right to terminate the contract 10 days after the expiration of the 30-day period.

If you pay within 30 days of the formal notice, the contract can resume its future effects the day after you paid at noon.

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

These include:

  • Application of an indexation clause provided for in the contract
  • Application of the malus
  • Increase in tax
  • Addition of a new mandatory guarantee required by law
  • Aggravation of insured risk

FYI  

If the contract does not contain an indexing clause, you can refuse the increase requested by the insurer.

You can request a reduction in the insurance contribution when the insured risk decreases. For example, in the event of a drastic reduction in the use of the car, or in the event of a reduction in the number of drivers,

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

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