Attention vehicle owners: Traffic insurance premiums are rising... What will the new prices be?
Vehicle owners whose mandatory traffic insurance renewal period is approaching are wondering how much they will have to pay. A new adjustment has been made to the premium rates, which were set at 3.5% in July.
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The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) announced that changes were made to mandatory traffic insurance premiums in September.
Turusan Bağcı, President of the Insurance Commission of the Consumer Confederation (TÜKONFED), explained the details regarding the matter. Speaking to Milliyet, Bağcı stated the following: "The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) has announced the rate of increase to be applied in September as 2 percent."
There was no increase in August. Traffic insurance premiums from July remained in effect throughout August as well. Now, a 2 percent increase will be applied to the August premiums.
"The Insurance and Private Pension Regulation and Supervision Agency (SEDDK) states that it determines the monthly increase rate by evaluating the damage index, chamber of commerce data, and vehicle price increases, as well as damage costs. Insurance companies are expressing their demands for interim adjustments, claiming they are operating at a loss.
If an interim adjustment is to be made in traffic insurance, I estimate that this will become clear towards the end of 2024. It is possible that a significant increase could be implemented in January 2025 after reviewing the entire year and examining the data from insurance companies. There are also insurance companies that want this to be done in September or October."
If a person in Istanbul is purchasing a vehicle for the first time and taking out a traffic insurance policy, we can say that the insurance premium for an average private car comes to approximately 10-11 thousand liras.
There is a difference of up to 7 times between a good driver and a bad driver. While a good driver in Istanbul can receive a 50 percent discount and pay around 4,550 liras, a bad driver is required to pay 30,000 liras due to a 200 percent surcharge.
Therefore, driving carefully, not reporting minor damages, and having some damages repaired out-of-pocket has become an important situation for drivers.
In my previous assessments, I had reported that the months of June through August were attractive for motor insurance prices. Currently, discounts and campaigns on motor insurance have been extended. Obtaining motor insurance in this half of 2024 has become very advantageous. I anticipate that these discounts will continue through September.
We can say that now is the perfect time to get auto insurance. Discounts will continue for a few more months. We anticipate a minimum increase of 25 percent in auto insurance by the end of 2024. It is necessary to get auto insurance during this period. Mandatory traffic insurance alone is not enough. A traffic policy does not cover the damage to your own vehicle; it only covers the damage caused to the other party.
For drivers who say "I won't get comprehensive insurance," purchasing additional optional financial liability insurance will be beneficial. When we look at average comprehensive insurance premiums, it is difficult to provide a single figure, as prices vary depending on the driver, the make, and the model.
We see that motor insurance is coming out between 20 percent and 50 percent cheaper for every make and model compared to 2023."