ESTONIA: The average annual premium for motor insurance increase by 22% in 10 months

29 November 2023 — Marina MAGNAVAL
According to the Estonian Traffic Insurance Fund (LKF), during the first 10 months of 2023, the average annual premium for motor insurance amounted to EUR 144, which is 22% more y-o-y, the Fund said.

"The price of motor insurance is not a fixed amount, it depends on several different factors such as type of vehicle, purpose of use, technical indicators, owner's damage history and a few dozens of other factors. However, the price level is most affected by the number of traffic accidents, their scale and market competition. The price of motor insurance in Estonia is as a result of close competition between ten insurance companies, which assess risks of customers differently", explained Andres Piirsalu, a member of the board of LKF. He added that considering the size of the Estonian market, the market competition in motor insurance is tighter than in most countries of the world.

From January to October, 28,000 traffic insurance events took place in Estonia, which is the same number as in the same period last year. The average damage of a traffic accident in Estonia is EUR 2,100.

According to Piirsalu, motor insurance premium has undergone a lot of changes over the years. "For example, the average annual premium in 2018 was EUR 142, but in 2021 it dropped to EUR 102. Then it started to rise, reaching EUR 117 by the end of October last year and EUR 144 in 10 months this year", he said.