How Tax Horsepower Impacts The Cost Of Auto Insurance

The fiscal horsepower is used to establish the registration certificate of your vehicle. It also affects the amount of your car insurance.

We’ll explain its calculation and its impact on what you pay.

Follow our advice to fully understand the legislation and to save money.

What is fiscal power

The tax horsepower of a car, noted CV for horsepower, defines the power of your engine. It corresponds to the maximum power of the motor in terms of kilowatt/hour.

It also indicates the vehicle’s CO2 emissions in terms of grams per km.

Since 2018, the amount of the CO2 tax depends on the number of fiscal horsepower of the car. This bonus-malus system aims to encourage the purchase of clean vehicles.

The fiscal power impacts the amount of your gray card and your car insurance premium. The higher its value, the more expensive your insurance and your car registration certificate will be and your vehicle will pollute.

Young drivers, beware! If in fact after your license you can drive any type of vehicle, in reality you may have difficulty taking out insurance if your car is too powerful.

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Car insurance and tax horses

The fiscal power plays a role in the amount of your car insurance premium, among a host of other criteria related to the age of the car, where it is parked, its use or the guarantees taken out.

For example, for a Ford Fiesta with a release in 2013, the insurance premium can vary from one to several hundred euros depending on its fiscal horse.

Something to keep in mind when buying a vehicle. A powerful machine costs more to insure for several reasons:

  1. It drives faster so the risk of accidents is higher and the damage greater;
  2. Repairs and replacement at replacement cost in the event of destruction are more expensive.

The price of a fiscal horse

The price of a tax horse varies according to the region of registration of the vehicle.

Each region is free to set this price and any exemptions if it wishes to encourage the purchase of non-polluting vehicles.

From one year to another, the price of the tax horse is likely to change.

Then simply multiply this amount by the number of tax horses to find out the cost of the gray card. The weight of your vehicle or its age can also vary the price.

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Calculation of real and fiscal powers thanks to the gray card

Since 1998, the calculation of the fiscal power of a car is calculated as follows: (CO2/45) + (P/40)1.6. It is also called administrative power or fiscal horse.

The terms of the calculation break down as follows:

  • CO2 is your vehicle’s carbon dioxide emissions in grams per kilometer (g/km)
  • P is the maximum actual car power of the engine in kilowatts (KW)

The real power

The real power corresponds to the engine power of your car from which the energy necessary for the operation of the peripheral accessories has been removed. It is expressed in Kilowatts (Kw).

It is mainly used to calculate the fiscal horsepower of your vehicle.

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The horsepower affects the rate of an insurance in different ways .

However, we’ve talked about some of them above and also provide some calculation for you.

Incase if you have any question or suggestion, simply let us know by commenting below.

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