“Since 2017, the prices of liability insurance have decreased only in the covid years, people drove less and therefore had fewer insurance events. In the last two years, however, strong inflation in the Czech Republic has led to higher repair costs and pressure on insurance companies to increase insurance rates in the last three years,” said Nicolas Eich, CEO of Srovnejto.cz.
Nevertheless, according to him, these increases are below the level of inflation. “We expect that price increases will continue in 2024 at a rate of around five percent, even though the overall inflation rate will gradually fall back below five percent,” he added.
In 2023, drivers in Prague mainly had to reach deeper into their pockets, where they paid an average of CZK 5,289. In the Ústí Region it was 4156 CZK and in the Karlovy Vary Region 4285 CZK. The Ústí Region has become a record holder in terms of the average price of liability insurance, and vehicle owners pay 4.9 percent more compared to last year.
“Although Prague has been the most expensive for a long time, surprisingly, prices are growing the slowest in the capital. Where there is the greatest density of vehicles, there will always be the most accidents and the liability insurance must be the most expensive. This is also proven by the case of the Ústí Region, which last year ranked third in the number of traffic accidents in its territory,” added Srovnejto.cz analyst Tomáš Růžička.
On the contrary, with a price of CZK 3,047, Vysočina is the cheapest region in the long term. Compared to the rest of the country, this region has a low population density and a low number of aut per capita. This year’s cheapest regions in terms of compulsory insurance also include the Zlín region with a price of CZK 3,213 and the Pardubice region with CZK 3,167.
The youngest drivers still pay the most for compulsory insurance. In 2023, twenty-year-old drivers paid an average of 7,598 crowns. The largest discounts from insurance companies were granted to 86-year-olds, namely 2,495 CZK.
“Insurance companies generally try to estimate the riskiness of clients as accurately as possible. Young drivers therefore pay the most. It can be expected that the average price for the 20-year-old age group will jump again next year,” explained Martin Daneš, director of Srovnejto.cz insurance.
Hyundai cars were the cheapest to insure, for which drivers paid an average of CZK 3,400, while BMW cars were the most expensive with a compulsory insurance price of CZK 5,953. With regard to the type of fuel, the owners had to count in the highest expenses aut on CNG, where the average was CZK 4,703, on the other hand, gasoline cars cost their owners the least, namely CZK 3,602.
Compulsory liability in the Czech Republic is provided by 12 insurance companies. Most of them set the rates according to the age and place of residence of the driver, the age of the vehicle, the volume and power of the engine, the number of kilometers traveled and other criteria. Every means of transport to which a registration mark or technical license has been assigned must have compulsory liability.