From January 1, 2025, car insurance will not be the same for everyone. Problem drivers, with a history of accidents or records that indicate a higher risk, will pay much more. This change comes as a result of the new regulation approved by the Financial Supervision Authority (AMF) in September 2024, which aims to differentiate insurance prices based on risk factors.
Factors That Calculate Insurance Premiums
The new regulation provides that insurance rates will vary based on several parameters:
- Accident History: Drivers with a troubled past will pay higher premiums.
- Engine power of the car: Vehicles with more powerful engines will cost more.
- Driver age and experience: Younger drivers and those with limited experience are considered more dangerous.
- Use of the vehicle: If the vehicle is used by a business entity or individual.
- Age of the car: Older vehicles may have a higher risk of breakdowns.
- Registration area: The county where the car is registered also affects, with urban areas typically having a higher risk of accidents.
The Role of Insurance Companies
In addition to the parameters approved by the AMF, insurance companies can also use other risk factors according to their assessment. The formula for calculating the insurance premium, approved by the AMF, gives insurance companies the flexibility to set individual rates. These fees must be reported to the AMF at least 30 days before their application.
The Bonus-Malus System: An Incentive for Responsible Drivers
This new system is based on the “bonus-malus” methodology, where drivers who show responsibility and are not involved in accidents benefit from lower rates, while those involved in incidents pay more.
Accident Statistics: A Warning
According to the latest data from INSTAT for November 2024, 90% of road accidents occurred as a result of the behavior of drivers. The 25-34 age group leads with 26.5% of the total number of accidents.
Benefits of the New Regulation
This regulation aims to increase road safety by encouraging drivers to be more careful and responsible at the wheel. The differentiation of insurance based on risk is expected to contribute to reducing the number of accidents and the social costs associated with them.
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