Have you carefully read your car insurance contract or your annual expiry notice? In this case, you may have already noticed that, in the small lines which explain the amount of your contribution, mention is made of the taxes to which your contract is subject.
Among them, the “attack tax”. Explanations.
The attack tax: what is it?
Although VAT does not apply to insurance contracts, they are nevertheless subject to a certain number of taxes, such as the insurance contract tax (TCA). For holders of a car or home insurance contract, the attack tax is added.
This is a contribution from policyholders to fund the national solidarity fund in charge of compensating victims: the Guarantee Fund for Victims of Acts of Terrorism and Other Offenses (FGTI) .
This fund was created in 1986 following the series of attacks perpetrated in France in the first part of the 1980s. It is financed in particular by this solidarity contribution on insurance contracts.
Who must pay the attack tax?
If you were hoping to be exempt, sorry to dash your hopes! The attack tax is mandatory. It is even included in the Insurance Code, in article L442-1. It is levied on all holders of an insurance contract covering damage to property . This therefore concerns both insurance contracts:
- car
- dwelling
- motorbike
- leisure vehicle ( camper van , etc.)
Small subtlety for car insurance, and the only possible case of exemption: so-called “Third Party” insurance . In fact, policyholders who have opted for a third-party car insurance formula mainly insure themselves for their civil liability , or even for any injuries they may suffer. Under no circumstances does third-party insurance cover damage to the vehicle. So, if the insured is well covered, the property is not. Therefore, this tax does not apply.
Likewise, as soon as you choose to add even just glass breakage coverage to your car insurance, you find yourself subject to this attack tax.
How much does it cost ?
The amount of the attack tax is set by the State and changes over time. Initially, it was €3.30. Following the wave of attacks that France experienced in 2015 and 2016, the amount of the tax was increased twice to reach its current level: €4.30 on January 1, 2016 then €5.90. ‘Next year. Indeed, in two years, unfortunately several thousand additional victims and families of victims have been taken into care by the FGTI.
As of March 1, 2022, this amount amounted to €5.90 per year.
How is it collected?
The attack tax is an integral part of the car or home insurance price .
Each insured person must therefore pay it annually. Its payment is generally transparent for the insured. It is in fact
the insurance company which is responsible for collecting it and then returning it to the FGTI.
Whether your contribution is monthly or not, whether you are insured all year round or whether you have chosen to terminate your contract during the year, this €5.90 is invariably due each year and for each contract held . So, if you insure your house and your car, you will contribute €11.80 each year to the compensation of victims of terrorism.
The first year, the tax is collected as soon as the contract is set up.
It is deducted from the first withdrawal or any deposit paid upon subscription. Subsequently,
the payment of the attack tax depends on the frequency of payment.
If you pay annually, in one go, the tax is included in your premium. If you pay monthly, you contribute one-twelfth of the tax amount each month.
Be careful with this last scenario. If you cancel your contract during the year, you will be asked for the full amount of tax. This is why a small remaining payment may be taken from you by your insurer.
The compensation fund
Since 1986, the Guarantee Fund for Victims of Acts of Terrorism and Other Offenses has provided financial support for those injured in attacks. It compensates for damages suffered, whether bodily (injuries), financial (loss of income, etc.) or psychological.
It also helps the families of victims killed during such events. In addition, the FGTI intervenes to cover all or part of the funeral costs and financially help families through compensation for moral damage or loss of income, for example. In 2020, the FGTI paid more than 400 million euros to victims and their families.
Material damage suffered in the context of this type of crime is also insured by the “Attacks” or “Acts of terrorism” guarantees provided for in car or comprehensive home insurance contracts .
To do this, you should choose the best insurance. Make a quote , compare your guarantees and call our expert advisors!
The FGTI is not to be confused with the FGAO
, the Compulsory Insurance Guarantee Fund, another guarantee fund financed by insurance and which compensates victims of uninsured drivers for example.
Make a donation
Because the memory of the attacks of the 90s and 2010s is still present in our minds and solidarity does not stop at a tax, support the French Association of Victims of Terrorism.
