French insurers and the rise of electric vehicles

The France Assureurs Federation has released a new study examining the electrification of France’s vehicle fleet and its impact on the insurance market, particularly with regard to pricing.

Over the past five years, the transition to electric vehicles (EVs) has accelerated sharply. In 2019, EVs represented just 2% of new registrations, compared with 18% in 2025, a figure expected to reach nearly 50% by 2050.

Conversely, sales of combustion engine vehicles have fallen from 92% in 2019 to 28% in 2025 and are projected to continue declining, reaching 48% by 2050.

The rise of electric vehicles is not without consequences for insurance pricing. Because EVs are more expensive to repair, average compensation payments are around 11% higher than for combustion-engine models.

These cost differences stem primarily from the complexity of dismantling, diagnosing, and repairing batteries, as well as the higher prices of windshields and headlights used in electric vehicles.

Another contributing factor is the heavier weight of electric and plug-in hybrid vehicles, which increases the severity of impacts and repair costs in the event of an accident.

In its report, France Assureurs also puts forward a series of proposals aimed at ensuring that motor insurance remains accessible to all French drivers amid the ongoing electrification of the vehicle fleet.