#SAVINGS & FINANCIAL PRODUCTS
“Riots are paid for by the state.” Not only: the government wants a “riot tax” of 0.8% on car and home insurance — funded by all policyholders — from 2027.
Published on October 29, 2026 · to be rechecked on March 31, 2027
The government wants to introduce a “riot tax”: a 0.8% levy on every car and home insurance premium (households, but also firms and local authorities). The money would fund a pool to compensate the heaviest riot damage, without replacing insurers, who would still handle most claims. The pool could reach €400 million (Les Échos), three-quarters funded by this contribution. Entry into force is targeted for 1 January 2027, but the text is not yet adopted: it depends on regulations under review by the Council of State. The measure would not be retroactive: it would not cover the 17 October 2026 damage, only possible future riots. It is contested, as it would make all policyholders pay.
Concretely, how much is 0.8% on my insurance?
Little in euros, but for everyone: on a €600 car premium, 0.8% ≈ €4.80; on a €250 home policy, ≈ €2. Small individually, but across millions of contracts it funds a pool of several hundred million euros.
In other words: a small line on your premium, but multiplied by millions of policyholders: that’s risk pooling — everyone pays a little to cover the big claims of a few.
Four caveats that belong with the number
- It is not yet voted: the scheme depends on texts under Council of State review; the terms may change.
- Not retroactive: the tax would not cover the 17 October 2026 damage, only future riots.
- The pool does not replace insurers: it would step in on the heaviest claims, not routine handling.
- It is a contested pooling: all policyholders would pay, including those never affected by riots.
Why it still matters: for policyholders: a small, almost invisible rise in car/home premiums from 2027, if adopted. To understand: insurance rests on pooling — we pay collectively to cover rare but costly risks.
For you
- Do you find it fair that all policyholders fund riot damage?
- Do you know what risk pooling in insurance is?
Sources: the government’s “riot tax” plan, reported by L’Express, Europe 1, Les Échos and Epoch Times (26-28 October 2026).
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