For the past few years, electric vehicle (EV) owners in France have enjoyed a significant break on their insurance bills thanks to a special tax exemption introduced in 2021. Known as the Special Tax on Insurance Agreements (TSCA), this policy helped make insuring an EV up to 25% cheaper than insuring a petrol or diesel car. But starting in 2025, many drivers will see that advantage shrink — or disappear entirely.
A tax break designed to boost EV adoption
The TSCA exemption was one of several measures rolled out to encourage drivers to switch to cleaner vehicles and meet EU emissions reduction goals. It sat alongside other incentives such as the ecological bonus (up to €7,000 off the purchase of an EV) and heavy penalties for high-emission cars.
The aim was clear: make electric cars not only environmentally appealing but also financially attractive. And for new models, that goal is still in play — but older EVs are about to lose out.
The change hitting older EVs
Under the revised rules:
- EVs registered in 2024 will still get a full TSCA exemption.
- EVs registered in 2023 will receive a 50% exemption.
- EVs registered before 2023 — meaning more than two years old — will no longer qualify at all.
For these older vehicles, the end of the exemption will likely mean:
- A 20–25% jump in third-party insurance premiums.
- A 12–15% increase for comprehensive (“all-risk”) coverage.
There is one exception: electric cars acquired through social leasing schemes will still benefit from the full exemption, a move aimed at supporting low-income households.
Why EV insurance costs are rising
While electric cars are still often cheaper to insure than combustion models, the gap is narrowing. Insurers point to several factors:
- Higher repair costs, especially for battery-related damage.
- Increased likelihood of a total write-off after major accidents.
- Price differences between brands, with models from manufacturers like Tesla being notably more expensive to cover.
At the same time, insurers acknowledge that EVs tend to have lower accident rates and cover fewer annual kilometres, which has so far kept premiums competitive. But with the TSCA exemption being phased out for older models, overall costs will edge closer to those of petrol and diesel cars.
A sign of the times for EV policy
The partial continuation of the TSCA break in 2024 shows that the government still wants to promote EV adoption. However, this shift also reflects a broader trend: as electric vehicles become more common, the generous early-adopter incentives are gradually being scaled back.
For current EV owners — especially those with models over two years old — 2025 may bring a noticeable bump in insurance costs. And for anyone considering buying used, it’s worth factoring this into the total cost of ownership.
In short, while the EV revolution is far from over, the era of steep insurance savings may be ending for many drivers. The message is clear: the road to greener transport will still save on emissions — but not necessarily on premiums.
