Rise In Car Insurance Rates Exceeds Inflation In Hungary

  • 9 Feb 2021 11:14 AM
  • Hungary Around the Clock
Rise In Car Insurance Rates Exceeds Inflation In Hungary
The average annual compulsory vehicle insurance premiums were Ft 45,000 nationwide and Ft 63,000 in Budapest, increases of 9% and 15%, respectively, according to the MNB’s annualised index presented on Monday.

Deputy governor Csaba Kandrács said the MNB’s new price index could bring long-awaited transparency to the pricing of compulsory vehicle insurance policies. The net price increase of such polices since 2016 is 40%.

Insurance companies incurred losses in this segment before 2015, but now they are making a 5-6% profit, he added.

Motor insurance premiums and payouts were balanced in 2019, which changed last year, as damage claims were lower due to the lockdown.

Kandrács advised motorists to compare offers from 13 companies.

The MNB will publish the compulsory vehicle insurance premium index quarterly.

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