Mandatory car insurance premiums saw a significant increase last year, rising by 8.7% with the average cost reaching 4,443 CZK in the fourth quarter. Prague drivers faced the steepest rates, paying an average of 5,787 CZK, while other regions like Karlovy Vary and Ústí nad Labem also experienced higher-than-average rates.
According to Karel Šultes, head of data and analysis at Klik.cz Group, the surge in prices is primarily driven by increasing repair costs, higher labor rates, spare parts expenses, and overall inflation-related factors. However, the legally mandated increase in minimum coverage from 35 to 50 million CZK for health and property damage has had minimal impact on prices, as most clients already had higher coverage limits.
Several factors determine insurance rates, including vehicle type, age, engine capacity, and performance. Insurance companies also consider the driver’s age, noting that young drivers and seniors statistically cause more accidents. Vehicle age and previous insurance claims history also play crucial roles in premium calculations.
Insurance companies can unilaterally increase premiums if specified in the policy terms, but must notify customers at least two months before the payment due date. Customers who disagree with the increase must notify their insurer within one month of being informed, after which the insurance will expire at the end of the paid period.