Attention vehicle owners: A new era in traffic insurance! – Latest news

Milliyet.com.tr/ As of the beginning of the year, insurance companies were given the right to increase traffic insurance premiums by 5 percent monthly. However, the Insurance and Private Pension Regulation and Supervision Agency (SEDDK), using its own authority, increased traffic insurance premium increases to 10 percent in January and February. The application was implemented with a 5 percent increase in March and April. However, as of May, a new era is entering in traffic insurance. Accordingly, traffic insurance increase will be determined according to the cost index. So how will it work here? Will the cost index be valid for car insurance? How much are traffic insurance costs for an average private vehicle now?

Consumer Confederation Insurance Commission President (TÜKONFED) Turusan Bağcı explained the questions about the issue to milliyet.com.tr. Bağcı used the following statements in his speech:

“The state determined the price of traffic insurance. In other words, the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) announced the ceiling price every year, and from then on, it would regularly say how much the traffic insurance premium would increase every month. Previously, a 5 percent monthly increase was predicted for January, February, March and April in 2024, and then a 10 percent increase was made in January and February. Here, consumers say ‘prices have increased so much, we cannot pay’. On the other hand, insurance companies were complaining very seriously. According to the statements made by insurance companies, the technical loss was 33 billion TL. The damage premium ratio is 180 percent. These 5-10 percent increases cannot even cover our costs last year. The damage is so great, there is no insurance company making a profit. That’s why it was said that the government should not determine the prices and let’s switch to free tariffs.

HOW WILL THE PRICE BE DETERMINED IN TRAFFIC INSURANCE?

It was stated that with the new regulation introduced by SEDDK, the monthly increase rate of traffic insurance will be determined according to a special index. This may also be called the traffic insurance price index. What to pay attention to here? Vehicle price increases will be considered. Minimum wage increases will be considered. Part prices and repair costs will be taken into consideration. Inflation will also be taken into consideration. A price index will emerge from the mixture of these.

‘PRICES WILL NOT INCREASE TOO SERIOUSLY’

Each month, how much traffic insurance will increase in the following month will be determined according to the index. Drivers will not be able to object to the price, insurance companies will not be able to say that they increased it too little and made a loss. I think the price index will not be too high at this initial stage. Prices will not increase significantly.

WILL THE COST INDEX BE IN THE CASE CONTROL?

There is no cost index in insurance. Car insurance is a private policy. Since it is private, insurance companies already set the price freely, so it is determined according to special techniques. This will not apply to car insurance.

7 FOLD DIFFERENCE BETWEEN A GOOD DRIVER AND A BAD DRIVER!

The distinction between good drivers and bad drivers continues in traffic insurance. The price increase for bad drivers may even increase further. While a good driver, that is, a driver who has been driving for more than 5 years without any accidents, can get a discount of up to 50 percent from the announced basic tariff, a bad driver, drivers who have an accident more than 3 times a year, can pay a 200 percent premium. In other words, the difference in traffic insurance premiums between good drivers and bad drivers has increased by 7 times.

WILL TRAFFIC INSURANCE PREMIUMS INCREASE FURTHER?

Traffic insurance prices will be determined according to the price index in the coming period. In other words, if vehicle prices increase, the increase in the minimum wage continues, and if the increase in repair costs and inflation continues, traffic insurance prices will also increase in parallel.