Car Insurance

Car Insurance is comparatively expensive in France partly because all premiums include taxes at an average rate of 36%. Even higher cotisations (premiums) are charged for cities and areas notorious for their high crime rate. Another factor affecting insurance charges is the high collision rate (one every 85 seconds according to one estimate). It is particularly important to shop around and to find the best deal possible.

The basic legal requirement for French Car Insurance is third party liability, and many owners of what seem quite new cars risk taking out no greater cover than this, though most will also have cover for accidental damage to the vehicle. Comprehensive Car Insurance is available which will cover most risks, including damage to your own car. It is particularly important to examine each policy and to see what is and what is not included, as various policies do not necessarily cover the same risks, and the insurance inclusions and exclusions will certainly vary from a UK or US comprehensive policy.

Green cards are no longer required by motorists travelling to France. If you are taking up permanent residence you will require a new policy that complies with French requirements: ask various companies and/or brokers for quotes as they all compete against each other for business. If you are in France, it should be a simple matter to locate local brokers, preferably with subsidiaries all over Europe so that insurance can be continued if you move elsewhere in Europe. Leading French insurers include AXA, AGF, CNP, Generali France and Groupama. The advantage of insuring through a local office in France is that they are more inclined to treat you as an individual, they know you and this can be useful as you can go and visit them in person to explain any problems you may be having with your documentation.

There are various peculiarities of French motor insurance. Firstly, the bonus/ malas system: although one gains a useful no-claims bonus and discount for not claiming each year, one also gains a claims supplement and loading if a claim is made, which can make insurance very expensive. Basically, to get the maximum discount (50%), you need to provide the French insurance company with proof of no fault claims for thirteen years.

Another difference to be aware of is that many comprehensive policies will reduce cover to third party only, if any accident or damage occurs because the driver was breaking road traffic law. If you want a policy that is tailored to the usage of the car, it is possible to arrange insurance based on the car's mileage (kilometrage). It is necessary to carry proof of insurance 'with you when travelling by car. Should you be unfortunate enought to be involved in an accident it will be necessary to complete a constat a amiable (agreed accident statement).

As with house insurance, it is usually necessary to give a long period of notice (sometimes three months) before cancelling a policy and one is liable for premiums until that notice expires. Overall, the French motorist has good reason to be envious of the comparatively reasonable cost and generous terms of Car Insurance elsewhere.

If you are simply looking to rent a car, check out our CarRental and e-sixt pages for latest deals and offers