This is the end of cheap car insurances in Hungary

If you used to seeing that insurance companies compete at the anniversaries, and you always get cheaper and cheaper compulsory vehicle insurance or Casco fees, then take a deep breath before looking at the offers. The market reached its lowest point and fee increase is expected. Carriers can get the biggest increase, but they do not want it so they will try to pass it on, hvg.hu wrote.

Insurance broker portal Netrisk announced it registered a 17%-increase in the first half of the year and a 22%-increase in an annual comparison in the average prices of the compulsory vehicle insurances. According to the portal’s own data, the average insurance cost was HUF 26 311, and it is not ruled out that this index will rise over HUF 30 thousand (plus the 30%-accident tax).

Koppany Nagy, supervisory director of the Hungarian National Bank (MNB) tried to calm things down. First, he argued the existing data of the Association of Hungarian Insurance Companies (Mabisz) do not support the 20 (or even 30%)-increase. However, the MNB also considers the fee increase inevitable, since the adjusted loss ratio increased to between 80-90%, and it even exceeds 100% in some categories of commercial vehicles.