Car insurance: abolition of the green sticker as a price shield in 2023?

While insurers have advocated for the disappearance of the green card for several years, Bercy would be ready to agree to it from 2023 in return for a measured increase in premiums. A kind of customs shield to protect the purchasing power of the French.

What is the green sticker for?

The green card has been compulsory in France since 1986. Its purpose is to check that drivers are properly insured and it must be affixed to the windscreen of vehicles every year on penalty of a fine. The insurance certificate must also be able to be presented to the police on sight.

Why do you want to remove the green card?

The green sticker has a cost: manufacturing costs, shipping costs and administration costs are passed on to the premiums paid by the insured. It also duplicates the Insured Vehicle (FVA) file, which is constantly updated by insurance companies, so that the police can consult it in case of suspected fraud. Created in 2016, the file currently lists around 56 million vehicles.

Among the other arguments put forward by the Insurance Association is precisely the fight against fraud. In 2020, 750,000 vehicles were actually driving without coverage, according to the Road Safety Delegation.

An increase in premiums limited to 4% in 2023

The decision to abandon the green card may make it possible to limit the increase in insurance premiums to 4% in line with the inflation forecast from INSEE next year. At least this is what Bercy is negotiating with insurers, who argue that the increase in the number of claims justifies a much higher increase. It is true that with global warming, natural disasters have multiplied (fire, drought, floods). And the price of materials is more expensive, insurance companies spent a lot more money. This ceiling is reminiscent of the tariff shield on energy or the freezing of bank rates.

What are the mandatory guarantees?

The prices for insurance companies are free, so it is advisable to compare insurance offers. Several guarantees are mandatory. The liability guarantee or third-party insurance constitutes the legal minimum. The driver’s personal guarantee protects personal injury suffered by the driver and his dependents in an accident with or without the fault of a third party. Theft, fire and glass breakage cover replaces damage caused to your own vehicle. All other warranties are optional.

Before subscribing to an attractive offer, it is better to check the size of the deductible. This is the sum that remains your liability after compensation. Depending on the size of the deductible compared to the cost of the repair, you may not be compensated. The cheaper the premium, the higher the deductible. It is also necessary to be wary of the exclusions which completely deprive the supporter of compensation in the event of a disaster. Reading the general and specific conditions in the contract is therefore essential for comparing the offers.

Posted on October 9, 2022 by Benoit Bernanque – Last modified on October 9, 2022

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