Fewer road accidents bring down price of motor insurance
According to statistics from LKF, 15,800 traffic accidents occurred in Estonia in the first half of the year, with total damages amounting to €34.7 million. That is a 9 percent decrease compared with the same period last year.
According to Andres Piirsalu, management board member of the Estonian Motor Insurance Bureau (LKF), the decline in traffic accidents and the drop in motor insurance prices are logically connected. "Since there is strong competition in the motor insurance market, it is clear that despite overall price increases and inflation in Estonia, insurance premiums will fall if there are fewer claims," he said.
In Piirsalu's view, however, the decrease in insurance claims reflects the impact of the economic downturn rather than an improvement in traffic safety.
"This year, the number of policies taken out is almost the same as last year, but the total amount of premiums collected has declined. This suggests that because of the difficult economic situation, people are driving less and therefore fewer accidents are happening. The mild winter also contributed to the reduction in traffic accidents," Piirsalu explained.
The average traffic damage claim in Estonia in the first half of this year was €2,200.
In addition, there were 1,015 motor insurance cases abroad involving Estonian vehicles, with total damages amounting to €5.3 million. This brought the overall average claim to €2,380.
Tanel Kurs, a management board member at Elama Kindlustus, said that the greatest concern remains accidents involving personal injury, which occur more often in summer than in other seasons. "While the average property damage is about €2,200, the average personal injury claim for someone who has sustained health damage exceeds €8,000. In cases of more serious injuries, the amount can surpass €100,000, which is covered by motor insurance," Kurs explained.
LKF serves as the administrator of the traffic insurance register, the traffic insurance guarantee fund, Estonia's Green Card Bureau and the compulsory insurer for vehicles without insurance contracts. LKF compensates damages caused by uninsured, compulsorily insured and unidentified vehicles. It also mediates disputes through the traffic insurance conciliation body.
--
Editor: Marcus Turovski
