With the new regulation made by the Insurance Regulation and Supervision Agency in traffic insurance, the new period that will give vehicle owners a breath of fresh air begins as of May 1.
With the new year, traffic insurance fees were increased by 30 percent. Insurance Regulation and Supervision Agency (SDDK) has adjusted policy price increase criteria due to reactions to increasing fees and the decrease in policy take-out rates. According to the regulation made by SDDK, policy prices will be regulated according to the ‘damage cost index’ as of May. In determining traffic policies, the increase in automobile parts and repair prices, inflation and especially minimum wage increases will be taken as basis. Monthly raises, which normally range between 5 percent and 10 percent, are expected to drop to 2 percent to 3 percent. Selin Güler, one of the representatives of the insurance sector, underlined that they are positive about the regulation made by SDDK and said, “Minimum wage increase and inflation affect the cost index. If the minimum wage is not increased in July, this means that the price of traffic insurance will not increase much. In short, traffic insurance prices will be determined by looking at vehicle price increases, minimum wage increases, parts prices and repair costs, and inflation. A price index will emerge from the mixture of these. “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,” he said.
However, since automobile insurance policies are a private insurance product, the cost index will not be valid for these policies. Car insurance policies are freely priced by insurance companies.
