The third party liability insurance market is a surprise again – contrary to all forecasts, the prices of compulsory vehicle insurance have decreased again – the average cost is PLN 495 – according to the latest report by RMF FM and Rankomat . “It seems that the insurers have their hands tied” – says the company’s expert, Grzegorz Demczyszak. Price increases by one company will result in an outflow of customers to another company, and increases in all companies will be reviewed by the Competition and Consumer Protection Office. And drivers in the coming year will face changes, especially higher fines.
After October, when prices in most regions increased for the first time in years, breaking the PLN 500 barrier, we saw significant declines. But despite this, the annual rate of reductions is slowing down: today it is 11.3%. cheaper than last year. In September it was 16 percent, in July it was 18 percent, even though it was more expensive than today.
This is because the previous year gave us sharp reductions in the rates of OC policies. Then, in 12 months, the average price dropped by almost PLN 80. Subsequently, these declines were not so noticeable, as can be seen in the statistics.
In the last month, there have been no exceptions among the 16 voivodeships.
We have recorded reductions in all voivodeships – says RMF FM Rankomat analyst Grzegorz Demczyszak – The largest in the Lublin region and Pomerania, in the amount of 15 PLN and 16 PLN.
The situation was a little different in large cities, where any reductions have been decidedly more marked.
Drivers from Opole, Wroclaw and Rzeszów could count on a reduction of around PLN 30. However, we have also seen increases in some of them. The largest in Łódź, 17 PLN, then in Gorzów, 13 PLN, and in Poznań, 9 PLN.
Smaller increases occurred in Warsaw and Białystok.
For many months, experts have been warning: this bubble must burst. It hasn’t been this cheap for years and everything around is getting more expensive.
Although some insurance companies have already increased the prices of compulsory insurance, the increases have usually affected selected groups of drivers, especially those who do not drive safely. With so much competition, it doesn’t have a significant impact on average prices calculated for the entire liability market – says the Rankomat expert.
So the fight for the customer continues and with a product as simple as the OC policy, the only way to compete is a price war.
Looking at the current pricing situation, one might be tempted to say that the insurance companies have their hands tied. Pan increase in the prices of policies in just one company means for him a loss of a client, because he will leave for the competition. On the other hand, it is not possible to raise rates jointly by all insurance companies, because the Bureau of Competition and Consumer Protection may consider it illegal price fixing – explains Grzegorz Demczyszak.
Since the beginning of November, insurers also have to comply with the recommendations of the Polish Financial Supervisory Authority, which should also affect the rates of liability policies, but this is not yet visible in the data.
As the Rankomat analyst points out, the recommendations of the Polish financial supervisory authority do not directly concern the prices offered by insurance companies: They only indicate the methods of behavior envisaged by the insurers in the context of the organization and management of the claims management process. In this way, the KNF wants to ensure that the insurance companies comply with the law and prevent the interests of the insured and the insured from being violated. Naturally, complying with the recommendations of the Polish Financial Supervisory Authority and raising claims handling standards, with high inflation and ever higher prices for spare parts and services, should force some insurers to raise their rates OC.
And will it happen? We’ll find out in a few months.
Polica OC is a compulsory insurance for every vehicle registered in Poland. There is no argument with this arrangement, even if we don’t use the car or it is damaged.
Under no circumstances buying an OC policy for a car registered in Poland cannot be neglected – recalls the expert Rankomat. According to the law, even if it is not used, it should have valid liability insurance. This obligation also applies to owners of seriously damaged vehicles. At most, they can temporarily take a passenger car out of traffic for a period of 3 to 12 months and reduce the amount of the OC premium for this period by at least 95%. – advises Grzegorz Demczyszak.
This is all the more important because since January the lack of purchased OCs can hit us in the pocket, because the penalties are increasing. They are directly dependent on the legal minimum wage in the economy, and this will double in 2023 – in January and July – due to very high inflation readings. The minimum salary will be PLN 3,490 and PLN 3,600 respectively.
This means that the fees for not having compulsory vehicle insurance will also increase twice a year – warns Demczyszak. From 1 January, the highest fine for truck, tractor and bus owners without a valid policy for more than 14 days will increase to PLN 10,150 and PLN 10,350, respectively. Car owners will pay PLN 6,770 and PLN 6,900.
So it’s worth setting a reminder to take out compulsory insurance.
