Compulsory insurance makes it more expensive. Pay annually and, above all, don’t break the bank, comparators advise – Seznam Zpravy

Prices liability insurance on passenger cars growing. This is confirmed by the Top-Pojištění portal, which says that since the beginning of the year, the average annual insurance price has increased from 4,108 crowns to 4,388 crowns. According to Ondřej Vack, a product expert on the Top-Pojištění.cz portal, the price of compulsory insurance continues to rise for several reasons. According to him, the costs of liquidating insurance claims are usually increasing for insurance companies, which is why the average loss is higher from year to year. Wages, utilities and other costs are also rising.

“Insurance companies respond to market developments and adjust prices continuously. There are changes to both the new prices and the existing package. In the past seven years, we have seen a steady growth in new prices by about 3.5% annually,” said Aleš Rothbarth, sales director of the Klik.cz group, also confirming that the trend is growing .

“It can be expected, for example, in connection with floods, that the loss course known as insurance companies will worsen, in other words, that the costs of paying insurance claims will increase. This may also be reflected in the increase in the price of liability insurance in the near future. But the part that will have the biggest impact on price increases is higher average damage,” he told editors SZ Byznys Bag

He says that even the cheapest Škoda Fabia is now equipped with electronic assistants, which a few years ago were the domain of luxury cars. These systems are very expensive to repair, which is reflected in their higher prices.

“We are monitoring the rising prices of spare parts and human labor, which is reflected in liability insurance prices,” Jiří Vachal, non-life insurance analyst from Broker Consulting, also told ČTK.

“For some insurance companies, we see almost no change, on the other hand, for others, the increase is even greater. That is why it is important that users actively find out the calculation of the liability insurance for their car, preferably two months before the end of the contract. Changing the insurance company can mean cheaper mandatory insurance for the next year for clients,” Vacek advises clients.

A small discount is also available when you choose an annual payment frequency. “As soon as the driver chooses quarterly or semi-annual payments, he is already exposed to a cost on top of the basic price of the annual insurance premium, even in the amount of 5%. What drivers should avoid, however, is trying to reduce the price of their car insurance by insuring certain risks or choosing lower coverage limits than they have. right now,” said Rixo.cz spokesperson Andrea Brádlerová.

According to the law, every vehicle owner must have compulsory liability insurance, or liability insurance for the operation of the vehicle. It is the compulsory insurance that pays for damage caused by the driver to the health or property of others with the vehicle.

The price of liability insurance depends on several factors. It is influenced, for example, by the age of the owner of the car. Younger people tend to have more expensive insurance premiums because they are riskier drivers. Residence is also taken into account, insurance policies tend to be more expensive in larger cities than in the countryside. And if the owner of the car drives without accidents for a long time, the insurance is a little cheaper thanks to the bonuses. On the other hand, malus can make it more expensive, which means additional cost if it is felled often.

“Each insurance company calculates the policy a little differently, so the price can vary. With the huge increase we have seen since the beginning of the year, it is very good to measure the price elsewhere and save,” Vacek says.

Rixo.cz also draws attention to the different approach to pricing. Bradlerova.

“Most drivers do not cause any damage so their harmless course can reduce the insurance premium. This is also why it is important to check current offers,” concluded Rothbarth.