Up to 5% increase for car insurance

Publish date 23 October 2014
Up to 5% increase for car insurance image

A 5% increase in car insurance can be expected by the end of the year. Whether this will happen will depend primarily on competition in the market, according to the industry. The trend is generally small, but still some increase in tariffs for the two most popular car insurance - "Civil Liability" and "Casco", predicts for "Standard" the executive director of "Bull Ins" Stoyan Prodanov.

The large compensations that insurers pay due to floods and hail this year are among the main reasons for the forthcoming rise in prices. Due to natural disasters, according to industry representatives, insurers will pay BGN 150-170 million.

"Both Casco and Civil Liability expect small, low, but increases above current prices in November or December. About 5%," said Stoyan Prodanov.

There is an increased interest in car insurance against natural disasters, Prodanov added. Shocked by the hail in the summer in Sofia, most drivers now want to insure themselves.

"We saw an interesting year. Filled with disasters, but still interesting because, on the one hand, there was an increased interest in insurance, on the other hand, there were more benefits. After such a year, it proved that insurance should become normal and important. part of the costs of each company and each household, "said Stoyan Prodanov.

"Regarding Civil Liability, if we look at the latest results as of July, we see that it has a significant growth. But this growth seems to be due to an increase in the range - the number of cars, rather than prices," said Tsvetanka Krumova. , executive director of "Armeec".

According to her, low incomes and fierce competition at the end of the year usually put pressure on prices. "At the end of the year, most insurers think that prices will rise, and this does not always happen. If there is any increase, it will be very small," Krumova said.

With regard to the insurance "Casco" on the decision of the client whether to make it have not only the price but also the service by the insurer, the rapid payment of benefits. "According to the latest data, there is growth in the Casco market," said Tsvetanka Krumova.

Source: Insurance.bg