Mandatory car insurance premiums rise by 10%

As reported by the Hungarian National Bank (MNB), the average annual premium for normally used vehicles rose to 58,000 forints (approx. 140 euros). The difference between Budapest and the rest of the country is particularly striking: while drivers in the capital now pay an average of 83,500 forints (approx. 205 euros), the average annual premium outside Budapest is 53,600 forints (approx. 130 euros).

A stop would be appropriate

Insurers’ claims expenses rose by 5% compared to the third quarter of 2023, with no further increase in the last quarter. The growth rate of claims expenses has remained below that of premium increases for six quarters. For this reason and in view of declining inflation, the MNB considers a consolidation of premium increases to be justified. So far, however, there are no signs of a trend reversal in insurance prices.

Saving with Netrisk

The annual campaign to switch insurance providers has just come to an end. At KGFB broker Netrisk, customers were able to save an average of 18,000 forints on their annual premium with new policies. The average premium for Netrisk customers is therefore HUF 33,500. The market leader mentioned anecdotally that car owners of the Toyota brand fared best with Netrisk: In their existing KGFB contracts they would have had to pay an average of around 57,000 forints, thanks to the broker this premium was pushed down to an average of 37,000 forints. At the end of the brand top 10, Opel owners were still able to save an average of 16,000 forints and thus pay less than 33,000 forints.

According to the bonus-malus system via Netrisk, accident-free drivers (B10) pay less than 32,000 forints a year, the B5 category is ‘rewarded’ with 50,000 forints and the B1 category with an average of 59,000 forints. The most expensive category of ‘traffic offenders’ (M4) is thus accompanied by average premiums of 175,000 forints.