Recently, news regarding the pricing of traffic insurance policies are one of the most broadly discussed topics by the public.  As is known, amendments to the certain articles of the Highway Traffic Law no. 2918 came into force as of 26 April 2016 as a significant step towards solving our chronic problems regarding traffic insurance and fixing the unfair competition environment.

 

When those amendments came into force, market practices and judicial rulings have been aligned in accordance with the regulations, and a predictable environment has been provided. Companies have begun to re-determine their premiums according to their costs to be incurred due to new regulatory framework. As can be seen on the graphic below, premium increase rate stopped especially since May, and premiums have begun to decline in June.

 

Traffic insurance premiums are determined according to the policy-holder and type of utilization based on the operator using various parameters including the accident history. These facts should be taken into account while making assessments on the matter; and it is extremely important for our drivers to abide by the traffic rules so that premium costs can be declined.

 

Premium reductions will continue and traffic premium burden on vehicle owners will be decreased in the coming terms as new players will enter the market, free competition environment will be protected and no interventions will be made to diminish the difference between drivers with and without accident histories.

 

We kindly announce to the public…

Insurance Association of Turkey