Car insurance changes in 2027

Car insurance in some regions could see changes starting January 1, 2027, affecting both the terms of contracts and the budgets of drivers. These changes involve a mandatory contribution that is part of insurance contracts, which will increase in cost.

The "terrorist tax" contribution rises

A contribution commonly known as the "terrorist tax" will increase from 6.50 euros to 8.50 euros per contract per year. This change was officially announced in a decree published in the Official Journal on July 24, 2026.

Impact on insurance contracts

The increase applies to most insurance contracts covering material goods, including home, car, boat, and some professional and agricultural contracts. This means that someone with both car and home insurance could see their total contributions rise by four euros annually.

Purpose of the increase

The increase is intended to strengthen the financial resources of the Guarantee Fund for victims of terrorist acts and other offenses, known as the FGTI. Created in 1986, the program has expanded its scope to include victims of various penal offenses, such as assaults and domestic violence.

Growing financial needs of the fund

The financial needs of the program have increased over the years, with the average cost of compensations rising by about 4% annually over the last decade. This increase is meant to help the fund manage the rising costs of bodily injuries.

Distinction between victim compensation programs

The FGTI, which is partly funded by the increased contribution, mainly deals with terrorism and common law offenses. Another organization, the Fund for the Guarantee of Mandatory Damage Insurance, handles cases like traffic accidents caused by uninsured drivers.

Insurance costs not fully determined by the increase

The increase in the "terrorist tax" is effective for January 2027 but does not alone determine the overall cost of car insurance. Insurance companies may also raise premiums based on factors like repair costs and claim frequency.

Role of insurance in supporting victims

This change highlights the role of insurance contracts in funding solidarity and victim compensation programs. While the per-contract impact is small, the overall effect could be more significant for households with multiple affected contracts.