The average price of compulsory motor vehicle liability insurance (kgfb) has risen to an unprecedented level: according to the Netrisk Kgfb index, it was HUF 52,322 at the beginning of March, which corresponds to an 8.8 percent increase on an annual basis, and a 27 percent increase compared to 2021 means
“The price of car insurance, including compulsory liability and comprehensive insurance, is largely determined by the price of new and used cars, as well as the price of spare parts. And as a result of the pandemic, serious problems arose in the supply chains, so car manufacturers could not meet the demand. This drove prices up. The increase in the price of raw materials, energy, and parts is also reflected in insurance premiums. In addition, the exchange rate of the euro against the HUF also affects car prices,” said Márton Besnyő, the managing director of the brokerage company. The expert also pointed out that, according to official data, the price of new cars in Hungary has increased by 3.7-23.9 percent annually since February 2019.
In the first two months of this year, 82,000 new compulsory liability insurances were taken out at the company, while in the same period of 2019, 66,000 new compulsory liability insurances were taken out. Average fees in the same period amounted to HUF 52,000, which is 27 percent higher than four years earlier. The price of comprehensive insurance also increased compared to 2019, the average price this year is HUF 136,000, which corresponds to a 42 percent increase.
The data on the calculator page also shows that, based on the Hungarian passenger car stock and new car sales, among the most popular car brands for Suzukis, Toyotas, Dacias, Opels and Fords, this year’s mandatory insurance premiums for private individuals ranged from HUF 9 to HUF 392,000, the average and it was HUF 38,400 – 48,800 depending on the brand.
Cover image source: Getty Images
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