The price of motor third party liability insurance is low if we do not take into account the purchasing power of the population and disregard the economic situation of the country. However, if we take into account these factors, the price is quite decent. However, we all know that it is rising steadily. This was announced in an interview with Insmarket.bg by Orlin Penev, Chairman of the Management Board of the National Bureau of Bulgarian Motor Insurers (NBBAZ).
On the recently discussed issue of one-time or deferred payment of insurance, Penev warned that if the deferred payment is banned, the scope of insurance may fall. Currently it is about 85-86%, with a requirement of at least 90 percent. Penev said that in countries like Germany, the coverage is 99% and insurers are worried that 1% of cars do not have insurance.
Penev pointed out the fact that motor insurance holds 73% of the business as a major problem for the Bulgarian insurance market. A drastic reduction in the price of insurance would also pose a danger to the market. "However, I think that the requirements for maintaining adequate reserves stop such desires," Penev added.