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"Civil liability" is cheaper, from the New Year - with increases

NEWS_PUBLISH_DATE 21 October 2013

Drivers will pay between 5 and 10% cheaper Third Party Liability insurance next month.

This is predicted by the industry on the threshold of the new campaign for concluding the mandatory policy.

However, the discounts will be temporary - a jump in prices is expected from the New Year, Nova TV reports.

At the end of the year, traditionally, most of the drivers renew the mandatory policy, and in the fight for customers, insurance companies make more advantageous offers.

Now the price of "Civil Liability" for cars with engine capacity up to 1700 cubic meters is between 180 and 200 levs.

With the discount the insurance can fall by BGN 20.

"Around the campaign, competition is intensifying and prices are going down - either with campaign discounts or new tariffs," said Konstantin Velev of the Association of Insurers in Bulgaria.

"There are companies that have started to lower prices and we can expect others to follow suit."

However, the lower prices will be short-lived and the forecasts are that the New Year will go up again.

Due to the greater damage they cover and the still low percentage of cars with a policy, insurers expect a 10 percent jump next year.

"Prices in 2014, following the pattern of 2012 and 2013, after the campaign will also go up to reflect the fact that companies have to pay more and this money must be collected through mandatory premiums," he said. Stoyan Prodanov, executive director of an insurance company.

"Road accidents, especially in Europe, are leading to increasing compensation to be paid by companies, and limits have also increased significantly."

According to the latest data from the Financial Supervision Commission, more and more cars have Civil Liability and by mid-October the coverage of the policy reached 86%.

"We are moving close to European levels of coverage in Civil Liability - there are no drastic differences between Bulgaria and other European countries.

Maybe there is a little less coverage than some more developed countries ", commented the chairman of the Financial Supervision Commission Stoyan Mavrodiev.

During this campaign, more and more insurers will segment the market and raise prices only for certain groups of drivers. Young and inexperienced drivers, owners of more cars, as well as those who drive in big cities and abroad will pay more.