A tax which should now apply to electric vehicles and a few other reasons mean that their owners will have to spend a little more on their wallets in 2024. We detail.
Changing your internal combustion engine car for a thermal car was not only good for the planet, but also quite good for your finances. Bonuses, tax gifts, the State has given some help to first-time buyers to encourage this purchase, essential for the ecological transition. And the soaring price of fuel at the pump was an additional reason to go electric.
In terms of the cost of car insurance, buying an electric car was also a way to save money. On average, the cost of insurance for a gasoline vehicle in 2023 is €645, while it is only €563 for an electric vehicle.
Shall we remit the tax?
A substantial saving which could well be reduced to zero from January 1, 2024. In fact, in order to boost sales of electric cars, as part of the 2021 finance law, the government had suspended the price of this insurance. TSCA, or special tax on insurance agreements, which insurance companies collect for the benefit in particular of the financing of Sdis (departmental fire and rescue services), the National Family Allowance Fund (Caf) and the National Health Insurance Fund (Cnam).
This tax had been removed for electric cars registered between 2021 and 2023, on third-party or multi-risk insurance, but at the same time it was maintained for electric models.
However, the finance bill for 2024 does not currently provide for the extension of this tax gift for electric models. Unless an amendment is tabled to this effect before the vote on this 2024 budget, this TSCA will therefore become effective again on January 1, 2024, automatically leading to an increase in the price of car insurance.
In detail, this price will increase by 20 to 25% for third-party insurance, by 12 to 15% for comprehensive insurance, with in particular increases of 33% on civil liability coverage and 18% on damage coverage. .
A trip to the garage more expensive, or even impossible
Another element could also increase the price of auto insurance for an electric car, according to the insurance comparison site Assurland : the repair cost, more or even much higher than that of a gasoline vehicle, itself increasing by 8.42% in 2023. In the event of an accident, the aluminum body of an electric car, more light but more expensive than a steel body, requires the intervention of a specialized bodybuilder.
In the event of a “breakage” on the battery, it even becomes extremely problematic. The battery represents up to 50% of the price of the car, with its metals such as lithium, cobalt or nickel. Replacing this battery becomes economically unviable for the owner and almost new cars end up out of service. As a result of this impossibility of repair, insurance companies could increase the price of car insurance for electric cars, as is already the case for the best-selling model in Europe, the Tesla Model Y, which sees the average price of its insurance rise, becoming 44% more expensive compared to the average price for an electric vehicle, at €812.
Add to this an expected increase in the price of electricity of around 10% in 2024, and the acquisition of an electric car could become a financial headache for some over time…
2023-10-13 04:18:30
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