People are also trying to save on car insurance

Czechs are also trying to save money on insurance, especially their vehicles. Many people judge compulsory liability insurance only by the price tag and take what is currently offered as the cheapest, regardless of the range of limits and services.

Some people also reduce their breakdown cover and take on more significant risks. “Some clients do cancel their accident insurance, but it is to a small extent,” Eva Svobodová, a spokeswoman for the Uniqa insurance company, said.

According to Veronika Pilková of the Czech Association of Insurance Companies, insurers are aware of the increased risk of contract cancellations. They expect clients to make a more significant effort to revise their contracts.

“Clients are starting to save money in accident insurance,” Marian Skrip, a specialist at Kooperativa, said. “People are accepting higher deductibles; they are covering fewer risks,” he added.

Czechs keep the old limits.

In the context of the drive to save money, Svobodová also warned that many clients are not updating their insurance policies and are keeping old limits. In the event of damage to the home, they will then receive only a fraction of the compensation relative to current prices. The continuing rise in the price of building materials is exacerbating this disparity.

More than a third of properties in the Czech Republic are not insured at all. While this is a long-term problem, it could worsen with the need to save.

“We are actively reaching out to clients with older contracts and reminding them that the insurance amounts on the contract may no longer correspond to reality. Most of them adjust them, but we still register around 25 percent of clients who take risks and keep their insurance amounts low,” said Milan Káňa from Kooperativa.