Insurance taxes set to rise in France by 2027

France’s draft 2027 budget bill is expected to include several tax increases and additional levies on insurance policies, which would put upward pressure on insurance premiums from 1 January 2027.

According to reports on the government’s budget proposals, the measures would affect motor, property and supplemental health insurance and help finance public services, including firefighting, as well as compensation for victims of terrorism and damage caused by riots.

For motor insurance, the tax would rise from 18% to 18.9%. Drivers with third-party-only coverage would be exempt from the increase.

A new 0.8% contribution for “riot” coverage would also apply from 2027 to property-damage insurance policies held by individuals and businesses, excluding agricultural risks.

Meanwhile, the mandatory contribution to the Guarantee Fund for Victims of Terrorism and Other Offences, commonly known as the “terrorist attack” levy, will rise from 6.5 EUR (7.4 USD) to 8.5 EUR (9.7 USD) per insurance contract starting 1 January 2027.

The 2.05% contribution on supplemental health insurance, introduced for 2026, could also be renewed for 2027.