About 10% increase in the price of "Civil liability" can be expected by the drivers who are about to renew the policy, said in an interview with Darik the executive director of Bulins Stoyan Prodanov.
According to him, the damages paid abroad are increasing, which also affects the price of the policy. In 2014, we can witness a bonus - malus system, which will allow drivers without violations and accidents on the road to pay a cheaper policy, said Stoyan Prodanov.
Still, the prices that the Civil Liability policy will strive for in the medium and long term are much higher. "Because the well-being of the people in the country is lower, insurance companies cannot afford to set premiums that are more adequate to the growing damage. My forecast is that the trend of the last four or five years will continue, "Prodanov said.
In recent years, the trend is for an increase in prices by over 10 percent on an annual basis, but this year this trend is lost and at the end of it we will probably witness an increase of about 10 percent on average for the year. According to Prodanov, while years ago only Romanians living near the border with Bulgaria registered their cars in Bulgaria because of cheaper insurance, now people from all over the country do so.
Damages paid abroad are proving to be a growing problem for insurers, confirmed Borislav Bogoev, Deputy Chairman of the Financial Supervision Commission. That is why the growing scope of insurance will not have a positive impact on its price. As of August 20, the scope of compulsory insurance is 86% of registered vehicles, and by the end of 72 percent. It is important for our country to achieve a range of at least 90% because of the green cards for drivers.
Source: http://insurance.profit.bg