Car insurance increased by 25 percent last year

car insurance they have become more expensive 25% last year. This increase resulted 158 euro increase in annual premiumWhile he was passing by average 627 to 785 euros. About a “historic” riseaccording to the price index prepared by the comparator Kelisto From approximately 23,000 monthly user ratings to approximately twenty insurers. This portal eliminates the extra costs resulting from price increases. Reached 2 billion 340 million euros.

Only fourth quarter of the yearThe price of auto policies increased by 29% compared to the same period last year, but its rise has slowed to become just 0.29% more expensive by the third quarter of 2023. Kelisto experts expect costs to stabilize this year, as evidenced by figures for the fourth quarter of 2023 and They do not rule out the possibility that the increases have already peakedEven though uncertainty prevails.

Despite the unprecedented increase, this “varies significantly depending on the modality analyzed. Expanded third-party policies are the ones I bring up the leastn at 12.31% compared to 14.65% for third-party insurance. and a stunning 34.61% of comprehensive insurance.. Drivers who benefit from the most complete method on the market have to pay 573.6 euros more per year compared to 2022. Looking at the month-on-month development, March (+10.13%) and August (+8.38%) are the biggest increases compared to the previous month.

all risk

The increase in car policies in the fourth quarter meant extra costs of more than €188 per year; again, all risk insurance led this increase (+41.69%). Third party insurance increased by 14.52%, and extended third party insurance increased by 14.99%.

“It is determined when compared to the third quarter of 2022 slowdown in upward trend; this product is up only 0.29%. The data is explained, first of all, by the 3.98% decrease recorded in October 2023 compared to September of the same year, with the price of the entire risk falling by more than 6%, only to increase again in the following months. It is impossible to trust in any way: Car insurance prices may have skyrocketedbut this ceiling is too high; The majority of Spanish families cannot afford the most comprehensive insurance”, explains Insurance spokesman Javier Martínez.

“Second round of inflation affected by greater dependence on vehicle policies increase in the cost of materials required for repairs, and the filter applied by insurers, Penalizing higher risk profiles with higher increases due to accident rates or lack of experience behind the wheelThey tell about what they experienced in a difficult year for them. inflation“Given the tensions that continue to affect sectors such as insurance and food,” explains Martínez.

More expensive repairs and faucet shutoffs

Insurers announced that 2023 would be a year of price increases in automobile policies, and so it was. However, such a sharp increase in prices was not expected, especially in comprehensive insurance. There are mainly two reasons for the price increases: the high cost of materials, which makes repairs more expensive, and companies turning off the tap while looking for new customers: insurers bid Very high, even unaffordable prices for profiles that do not interest them, with a higher risk of accidents.

There is another factor contributing to the rise in prices: They announce on this platform that the ‘open bar’ era, when insurers competed to make their customer portfolios bigger and better, is over. “Many companies were selling at a loss and can no longer afford itBecause, as noted by key players in the industry, such as Mapfre president Antonio Huertas, their solvency is at risk.”

In this context, young drivers, have little driving experience or negative accident records (parties at fault or many traffic tickets) Prices that are too high when pricing, which triggers averaging. This is especially noticeable in the all-risk method, where the company risks having to pay thousands of euros per policyholder in the event of an accident.

accident rateOn the other hand, as most companies admit, it is on the rise globally. some usual road mobility records after the pandemic. There are very important insurance companies in the Spanish market. Direct line, They explain at Kelisto: “This situation, which directly incurs losses and declares that they are acting ‘cleanly’ to retain the best customers, is a situation that is repeated in many companies, although not as severe, and it will probably not end completely in 2024,” Martínez assessed.

Source: Informacion


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