Have you carefully read your car insurance contract or your annual expiry notice? In this case, perhaps you have already noticed that, in the short lines explaining the amount of your contribution, mention is made of the taxes to which your contract is subject.
Explanation of the Tax Attack
If VAT does not apply to insurance contracts, they are however subject to a number of taxes, such as the tax on insurance contracts (TCA). For holders of an auto or home insurance contract, the terrorist attack tax is added.
This is a contribution from the insured to feed 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 therefore financed in particular by this solidarity contribution on insurance contracts.
Who has to pay the terrorist attack tax?
If you hoped to be able to be exonerated, sorry to shower your hopes! The attack tax is compulsory. 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:
- Recreational vehicle (motorhome, etc.)
Small subtlety for car insurance, and the only case of possible exemption: so-called “Third Party” insurance . Indeed, policyholders who have opted for a third-party auto insurance formula are mainly insured for their civil liability , or even for the injuries they may suffer.
Under no circumstances does third-party insurance cover damage to the vehicle. Thus, if the insured is well covered, the property is not. Therefore, this tax does not apply.
Similarly, when you choose to add even glass breakage coverage to your car insurance, you find yourself subject to this attack tax.
Cost Amount Of Tax Attack
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 l ‘Next year. Indeed, in two years, the FGTI has unfortunately had to take care of several thousand additional victims and families of victims.
As of March 1, 2022, this amount was €5.90 per year.
How Attack Tax Is Collected
The terrorist attack tax is an integral part of the car or home insurance rate .
Each insured must therefore pay it annually. Its payment is generally transparent for the insured. It is indeed the insurance company which is responsible for collecting it and then returning it to the FGTI.
Whether your premium is paid monthly or not, whether you are insured for the whole year or whether you have chosen to terminate your contract during the year, these €5.90 are invariably due each year and for each contract held .
Thus, if you insure your house and your car, you will contribute €11.80 each year to compensation for victims of terrorism.
In the first year, the tax is collected as soon as the contract is set up.
It is deducted during the first direct debit or any deposit paid on subscription. Subsequently, the payment of the bombing 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.
Read Also: Details on auto insurance
Pay attention to this last scenario. If you cancel your contract during the year, you will be asked for the full amount of the tax. This is why a small balance due may be deducted 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 indeed compensates the damages suffered, whether bodily (injuries), financial (loss of income, etc.) or psychological.
It also helps the families of victims killed in such events. In addition, the FGTI intervenes to cover all or part of the funeral costs and to help the families financially through compensation for moral damage or loss of income, for example.
In 2020, the FGTI donated more than 400 million euros to victims and their families.
Property damage suffered in the context of this type of crime is also covered by the “Attacks” or “Acts of terrorism” guarantees provided for in car or multi-risk home insurance contracts.
For this, it is necessary to choose the best insurance. Make a quote , compare your guarantees and call on our expert advisors!
The FGTI is not to be confused with the FGAO , the Fonds de Garantie des Assurances Obligatoires, another guarantee fund financed by insurance and which compensates the victims of uninsured drivers, for example.
Making A Donation
Because the memory of the attacks of the 90s and 2010 is still very present in our minds and because solidarity does not stop at a tax, support the French Association of Victims of Terrorism.
Hope you now have a better Know on what Tax attack is an how to go about it when you come across it.
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