This year several factors come together that will cause our insurance premiums to rise. Some, if you have renewed, you will have already seen it and those that are about to expire will receive the renewal notice with a higher price. Regardless of whether or not we have had a mishap, this year Touch increase in your car insurance.
Let’s start with an important fact. In this 2023 and after the Spanish insurers ended 2022 with a 4.65% increase in premiums, all insurers have updated the prices of their policies. On the other hand, the law requires updating the compensation and expenses associated with personal damages that occur in traffic accidents, an update that is adjusted according to the CPI data for pensions. The sum of these two factors, ultimately, will cause insurance to increase on average by 8.5% on all expenses caused by injuries and deaths.
If to this 8.5% we increase the tensions in the supply chain that we have been suffering in recent years, the associated logistics and energy costs and the extra costs due to the increase in the cost of raw materials, insurance companies have to experience this increase . In another order of things, the accumulated delays of vehicles in 2021 and 2022 have made the insurance demand in 2022 increases after the massive deliveries that we have seen in recent months and the most recent sales data.
Other factors that affect
On the one hand we have sectoral data: more cars sold / bought equals more insurance. We also have to add the economic factor and the inflation that we are experiencing, which affects not only the price of insurance but the entire chain; services, repairs, replacement cars, everything goes up and everything becomes more expensive, directly affecting the annual insurance fee for your car.
If to this inflationary figure we add the slight upturn in accidents and therefore, an increase in the costs that it entails, these incidents are causing a progressive increase in the price of the policies. In this branch, the increases in costs and the repair of vehicles are not only affected by the prices of materials and labor, we are increasingly having more technological and complex cars. The new security and driving assistance systems mean that repairs involve an increase in labor hours and in some cases more expensive parts.
Finally, this increase in demand means an increase in the claims that are processed every day.
How have the prices changed?
To put a little more context in the matter that matters, the rise, we leave you this information collected from the comparator kelisto.es that makes a comparison of what insurance cost in the first quarter of 2022 and compares it with the same period of 2023 .
- Third parties: increase of +15.1% (€50 on average)
- Expanded third parties: increase of +10.1% (€41 on average)
- All risk: increase of +27.1% (€424 on average)
- General average: increase of +21.2% (€128 on average)
The tendency
Whether it is car, health, home or pet insurance, the trend that the General Directorate of Insurance gives us is upward. Life and health insurance are being the main responsible for this increase with annual growth of 5.2% and 4.1% respectively. In the case of auto insurance, in 2022 these grew by 3.7% highlighting as the main factor of this increase, a tremendous price war that has obviously meant a drop in the average price at the time of contracting and that increases in 2023 with all the factors that we have detailed.
And in your case, have you raised the policy this year? We read you!
