A tenth of drivers pay more than €150 a year for compulsory insurance: an expert explains what it depends on

A survey by Spinter Research revealed that one in ten drivers pays more than 150 euros for an annual third-party liability insurance policy. An insurance expert says that the price of a policy depends on many factors, and it can sometimes vary almost twice as much between different insurance companies.

According to the study, the largest share – more than a fifth or 26 percent – ​​of those surveyed pay between 80 and 100 euros for an annual driver's third party liability insurance policy. 22 percent of respondents said they pay up to 80 euros, and the same share spends 100-120 euros per year on an insurance policy.

Approximately one in ten drivers pays 120-150 euros per year for their third-party liability insurance, another tenth pays more than one and a half hundred euros. The remaining 10 percent could not specify the exact amount.

What determines the price of insurance?

Marius Jundulas, an insurance market expert and creator of the insurance platform "I'm Calm", says that the price of insurance depends on many factors - the make and model of the car, the age of the policyholder, driving history, and even where and how the car will be operated.

"The type of vehicle probably has the greatest impact on the price: passenger cars usually have a better risk price than trucks, and compulsory motorcycle insurance is usually cheaper than cars. The price of insurance is also changed by the weight of the vehicle, engine power, commercial use of the car, the driver's age, experience, place of residence, history of previous losses, and many other, smaller parameters," the expert says. Jundulas emphasizes that due to a multitude of factors, the price of an insurance policy can vary significantly both for the same car - if it is driven by two different people or is used for different purposes - and for the same person who has changed vehicles.

The cost of insurance may decrease

People often expect that the price of vehicle insurance should be similar across all insurance companies and are often surprised that the amount of risk assessed by insurers can vary significantly.

"For example, a 36-year-old person has been driving a 2001 Kawasaki ZR 750 motorcycle in a big city for the past 5 years. The preliminary price offer for a 12-month insurance policy from five different insurance companies will range from 25.26 to 67.48 euros," the expert provides a vivid example.

According to him, this is because each insurance company not only collects and uses its own statistics on a daily basis to assess risk, but also follows its own risk assessment algorithms that are constantly being improved.

"People often don't think about it or simply don't know that insurers must also assess price trends for vehicle spare parts or repair services and other factors for at least one year into the future so that constantly growing insurance payments do not become a burden," the expert reveals the behind-the-scenes of the business.

Jundulas also urges us to remember that due to economic laws, primarily inflation, the prices of absolutely all goods and services are constantly increasing. However, he emphasizes that there are situations when several favorable risk calculation parameters applied simultaneously to a specific driver can significantly reduce the price of the policy.

Features of motorcycle insurance

When talking about motorcycles, he also draws attention to another detail that many drivers don't even think about.

"Since motorcycles are a relatively seasonal means of transport in Lithuania, i.e., they are usually operated only during the warm season, the majority of their drivers buy insurance only for that half of the year. When the new season arrives, some of them simply forget about the insurance. In such a situation, if they get into a traffic accident, the costs can be much higher than purchasing insurance for the whole year," advises the expert, adding that the price of half-year and full-year insurance often differs by only a few euros.

He also reminds that motorcycle drivers should drive more carefully after winter, as they need to regain their somewhat forgotten driving skills and other road users need to adapt to the more intense motorcycle traffic on the road. According to the expert, a motorcyclist should always have three things in order: their vehicle, all the necessary documents and, most importantly, their head.

"And not just because the helmet is properly placed on it. A motorcyclist must always adequately assess the travel conditions, safe speed, maneuvering, their visibility in relation to other road users, and never relax too much," M. Jundulas wishes.

A survey by the public opinion research company "Spinter Research" on the behavior of drivers when choosing compulsory third-party liability insurance was conducted on November 18-28, 2024, and 1,013 respondents aged 18 to 75 participated in it.