Car insurance prices are rising. This is confirmed by the portal Top-Pojištění, which states that since the beginning of the year, the average annual insurance premium has risen from 4,108 crowns to 4,388 crowns. According to Ondřej Vack, product specialist of the Top-Pojištění.cz portal, the price of compulsory insurance is continuously increasing for several reasons. According to him, the costs of liquidating insurance claims are generally increasing for insurance companies, which is why the average loss is higher from year to year. Costs for wages, utilities and other items are also rising.
“Insurance companies respond to market developments and adjust prices continuously. There are changes in both the new prices and the existing portfolio. In the last seven years, we have seen a constant growth of new prices by approximately 3.5% every year,” Aleš Rothbarth, sales director of the Klik.cz group, also confirmed the growing trend.
“It can be expected that, for example, in connection with floods, the so-called loss course for insurance companies will worsen, in other words, the costs of paying insurance claims will increase. This too may be reflected in the increase in the price of liability insurance in the near future. But the biggest part, which has a fundamental influence on the price increase, is the higher average damages,” said Vacek for SZ Byznys.
He adds that even the cheapest Škoda Fabia is now equipped with electronic assistants, which a few years ago were more the domain of luxury cars. These systems are very expensive to repair, which is reflected in higher prices for them.
“We are monitoring the rising prices of spare parts and human labor, which is reflected in the prices of liability insurance,” Jiří Váchal, a non-life insurance analyst from Broker Consulting, also confirmed to ČTK.
How to save? Drive without accidents and live in the village
“For some insurance companies, we see almost no change, on the other hand, for others, the increase is even greater. That is why it is important that clients actively find out the calculation of the liability insurance for their car, ideally two months before the end of the contract. Changing the insurance company can mean cheaper compulsory insurance for the next year for clients,” Vacek advises clients.
A small discount can also be obtained when choosing an annual payment frequency. “As soon as the driver chooses quarterly or semi-annual payments, he is already exposed to a surcharge on the basic price of the annual insurance premium, even in the amount of 5%. What drivers should avoid, however, is trying to reduce the price of their car insurance by insuring certain risks or by choosing lower coverage limits than they currently have,” said Rixo.cz spokesperson Andrea Brádlerová.
By law, every vehicle owner must have compulsory liability insurance, or liability insurance for the operation of the vehicle. It is the compulsory insurance that pays for damages that the driver causes to the health or property of others with the vehicle.
The price of liability insurance depends on several factors. It is affected, for example, by the age of the car owner. Younger people tend to have more expensive insurance premiums because they are riskier drivers. The place of residence is also taken into account, insurance policies tend to be more expensive in larger cities than in the countryside. And if the car owner drives without accidents for a long time, the insurance is slightly cheaper thanks to the bonuses. On the other hand, malus can make it more expensive, which means an extra charge in the case of frequent demolition.
“Each insurance company measures the policy in a slightly different way, so the price can vary. With the big increase we’ve seen since the beginning of the year, it’s really good to have the price calculated elsewhere and save,” Vacek points out.
Rixo.cz also draws attention to the different approach to pricing. “It is completely normal for a driver to receive completely different price offers from several insurance companies at the same time, even in the case of setting up the same insurance coverage,” said Brádlerová.
“Most drivers do not cause any damage and their harmless course can thus reduce the price of insurance. This is also why it is important to check current offers,” concludes Rothbarth.
Insurance Prices Are Going Up! (Surprise, Surprise!)
Well, well, well! Looks like our wallets have a new enemy: car insurance premiums. According to the trusty folks at Top-Pojištění, since the dawn of the year, the average annual insurance premium has risen faster than my hopes of getting younger every birthday, jumping from a comfy 4,108 crowns to a staggering 4,388 crowns. Talk about inflation hitting us where it hurts—right in our driving budgets!
Why Are Prices Soaring?
Onto the reasons for this relentless price hike! Ondřej Vack, the product guru at Top-Pojištění.cz, spills the beans: insurance companies are grappling with rising costs of liquidating claims. Basically, the insurance folks are spending more money than they make on claims, which is, let’s face it, as awkward as trying to parallel park in a fancy sports car.
Add to that the cumulative strain of wages, utilities, and all those other expenses, and it’s no wonder they’re raising prices. Consumer confidence may be increasing, but clearly, the insurance companies have decided to work on their confidence, too—by charging us more!
How to Combat the Premium Monster!
Now, fear not! For there are ways to tackle this problem head-on. It’s time to channel your inner detective. You’ve got to start investigating your car insurance options well before your contract runs out—aim for about two months in advance. Switching companies could turn into a money-saving hero story that even Jimmy Carr would applaud!
And hey, paying annually might shave some pennies off your premium. No one wants to be shelling out extra just for the luxury of quarterly or semi-annual payments—like adding sprinkles to a donut that was already too sweet!
Factors in Your Premium Price
Let’s also dive deeper into the whole pricing dilemma, shall we? Your age plays a significant role, with younger drivers facing steeper premiums thanks to their unpredictable—let’s say, adventurous—driving styles. If you live in a bustling city, your insurance will likely cost more than if you settled down in the idyllic countryside. Think of it as the neighborhood watch of premiums—rural tranquility versus urban chaos!
Of course, driving without accidents is akin to finding a unicorn: rare, magical, and it comes with benefits! So, if you’ve maintained a spotless record, congrats! You’ve crowned yourself king or queen of the premiums and maybe snagged a bonus.
The Wild World of Insurance Companies
Now, let’s talk about the strange habits of insurance companies. They can act like odd relatives, each with a different opinion on how to price your policy. You could ask four different insurers for a quote, and you’d swear they all live in alternate realities. Shopping around can reveal just how varied their offerings can be. Don’t just settle for the first price—time to flex those negotiation skills!
Conclusion: Be Smart, Stay Savvy!
In a world of rising car insurance prices, the key takeaway is simple: be proactive! Check your options, dive into the market, and remember that sometimes, cheaper is only a click away.
So, what are you waiting for? Don that Sherlock hat and start comparing those premiums. After all, your bank account will thank you later—unless, of course, your car decides to throw a tantrum first!
The cost of car insurance is on the rise, with the recent data from the portal Top-Pojištění revealing an increase in the average annual premium from 4,108 crowns to 4,388 crowns since the beginning of this year. Ondřej Vack, a product specialist from the Top-Pojištění.cz portal, emphasizes that several factors are contributing to the continuous surge in compulsory insurance prices. Primarily, the costs associated with settling insurance claims are escalating, resulting in a rise in the average loss incurred by insurance providers year after year. Additionally, operational expenses such as wages and utility costs are also climbing.
Insurance companies are adapting to market changes by regularly adjusting their prices. “In the last seven years, we have witnessed a steady annual increase in new prices of around 3.5%,” noted Aleš Rothbarth, sales director of the Klik.cz group, underscoring the growing trend in the insurance industry.
Furthermore, the impending threat of natural disasters like floods is anticipated to exacerbate insurance companies’ loss ratios. This deterioration could lead to further hikes in liability insurance costs. “The largest factor contributing to the price increase remains the climbing average damages,” Vacek explained in an interview with SZ Byznys, highlighting the ongoing economic pressures on the industry.
In addition to rising prices, modern vehicles like the Škoda Fabia now come equipped with advanced electronic assistants—features that were once exclusive to luxury models. These electronic systems come with hefty repair costs, further contributing to the increased insurance premiums for such vehicles.
“We are witnessing a notable rise in the cost of spare parts and labor, leading insurance companies to adjust their liability insurance rates accordingly,” stated Jiří Váchal, a non-life insurance analyst at Broker Consulting, confirming the trend observed in the industry.
How to save? Drive without accidents and live in the village
Given the variability in insurance pricing, it’s crucial for clients to actively seek out multiple quotes for their car’s liability insurance. Vacek suggests that individuals begin this process at least two months before their current policy expires. By switching providers, consumers may secure a more affordable rate for the upcoming year, emphasizing the importance of research and comparison.
“A small discount can also be obtained when choosing an annual payment frequency. However, opting for quarterly or semi-annual payments can lead to a surcharge, potentially inflating the cost by up to 5%,” cautioned Andrea Brádlerová, spokesperson for Rixo.cz. She warns against attempts to lower insurance costs by excluding certain coverages or reducing limits, which could jeopardize essential protection.
By law, every vehicle owner is required to possess compulsory liability insurance, which covers damages inflicted upon others’ health or property while operating a vehicle. The complexity of determining insurance costs hinges on several factors such as the owner’s age. Younger drivers often face higher premiums due to perceived risks associated with their driving habits. The location where the driver resides also influences rates, with urban areas typically incurring higher costs than rural locales.
For policyholders who maintain a clean driving record, insurance costs can decrease thanks to loyalty bonuses, while a history of accidents or traffic violations may lead to surcharges known as malus. “Each insurance company has a unique methodology for pricing policies, resulting in significant variances in quotes across the market,” Vacek pointed out.
Similar sentiments were echoed by Rixo.cz, which reported the disparities in insurance offers. “It is entirely normal for a driver to receive distinctly different price quotes from various insurance providers, even when requesting identical coverage,” Brádlerová noted, highlighting the importance of comparing offers before making a decision.
A significant majority of drivers do not cause any accidents, and maintaining a clean record can play a critical role in minimizing insurance costs. Hence, Rothbarth encourages consumers to actively review the current market offerings to ensure they are getting the best rates available.
Ea Brádlerová, a spokesperson for Rixo.cz. It’s also advised to avoid cutting costs by selecting lower coverage limits or excluding certain risks, as this can leave drivers exposed in case of an accident.
Legally, every car owner must maintain compulsory liability insurance, which protects against damages caused to others by the insured vehicle. The factors that affect the cost of this insurance include the owner’s age, driving record, and location. Younger drivers are typically charged higher premiums due to being statistically more prone to accidents, while urban dwellers may face steeper rates compared to those in rural areas.
Furthermore, a clean driving history without accidents can earn drivers discounts through no-claim bonuses, while frequent claims can lead to higher premiums due to a malus system. “Since every insurance company evaluates risks differently, prices for the same coverage can vary widely,” noted Brádlerová, encouraging consumers to shop around for the best deals.
with the rising trend in car insurance prices fueled by increasing operational costs and the escalating cost of repairs and replacements, being proactive in comparing policies and seeking out competitive rates is essential for consumers looking to manage their expenses effectively.
