A total of 358 deaths were recorded compared with 453 a year earlier. The number of people injured in accidents was 2,431 against 3,146 in July 2010.
"This figure is the lowest recorded for July since we started collecting monthly statistics in 1956," said a spokesperson for the road safety agency, Sécurité routière.
There were several high profile accidents in France in July, including two involving drunk drivers who drove the wrong way on motorways A7 and A9. In each accident, four people were killed.
Despite the better figures, the overall toll since the start of 2011 is up on the same period last year. The number of deaths has increased every month so far this year, with the exception of May.
Sécurité routière said the improvement was the result of better driving as well as a "greater presence of police particularly around holiday departures during a time of bad weather."