Car premium increased by over 60 euros since beginning of this year

December 28, 2023

Inflation and rising costs increase premiums

Car owners now pay an average of 849.96 euros per year in premiums. At the beginning of the year, it was 792 euros. By 2022, they were spending 744 euros a year on their car insurance. The high premiums are largely due to rising costs from high inflation. Increasing costs, such as more expensive auto parts and higher personnel costs, affect premiums.

Vehicle crime also contributes to premium increase

The increase in vehicle crime is also impacting the rise in insurance premiums. A relatively high number of cars were stolen in 2022 and 2023, according to data from the National Intelligence and Expertise Center for Vehicle Crime (LIV). In the first six months of 2023, 2,917 passenger vehicles were stolen, which is 1 percent more than in 2022 during the same period.

Rising claims burden also impacts premiums

In addition, the rising claims burden for insurers is affecting premiums. Earlier, the Association of Insurers stated that it had risen substantially by early 2022 due to various developments. The cost of claims is passed on in premiums by insurers with a lag, and the car owner notices. The survey, in which has charted the average monthly premiums for third-party, third-party+ and All-Risk insurance for six years in a row, shows that car premiums have been rising for years.