“In 2025, the traffic picture was primarily affected by the general decrease in traffic activity and mostly favorable weather, which was also reflected in the number of motor insurance claims”, said Andres Piirsalu, member of the board of the LKF.
In addition to traffic conditions, the number of traffic accidents and insurance claims is also affected by economic factors. Data from previous years show that in periods when economic activity is more modest, people generally travel less – both in terms of daily trips and freight transport. This means lower traffic load and, ultimately, fewer accidents and insurance claims. This connection is also reflected in the prices of motor insurance. In 2025, the average annual MTPL premium was EUR 138, while a year earlier it was EUR 150.
At the end of the year, there were approximately 4,000 more valid MTPL contracts in Estonia than a year earlier. However, in the largest category – passenger cars and light trucks – the number of contracts declined by nearly 5,600 contracts. Truck insurance began to grow in December 2025. “We have often seen truck insurance growth in the insurance sector precisely when the economy is recovering. When companies transport more goods and there is more construction and infrastructure work, the use of trucks and the need to insure them increases”, explained Andres Piirsalu. “2025 showed that the total number of MTPL insurance contracts remained generally stable, but changes occurred within vehicle groups”, he added.
The amount of motor insurance premiums in 2025 amounted to EUR 118.1 million, which was below both previous forecasts and the 2024 level (EUR 132 million). The end-year result was primarily affected by a decline in premiums for passenger cars and trucks in the first half of the year.
In 2025, the motor insurance market became quite diverse among insurers. The number of valid motor insurance contracts increased in the portfolio of several insurers at the end of the year, including Gjensidige, LHV, Salva and BTA. The largest growth rate was recorded by Balcia. At the same time, the opposite changes off-set each other, thus the number of valid motor insurance contracts in the market increased by approximately 4,000 at the end of the period.
Overall, 2025 reflects stable and balanced development in the Estonian motor insurance market. There were fewer claims, insurance coverage remained widely used, and the price level remained moderate. The aggregate data shows that Estonia has a functioning and market-adapting motor insurance system, which also fulfilled its main goal in 2025 – to be a reliable support for road users, the LKF said.
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