4 Percent Hike in Compulsory Traffic Insurance, Lowest Premium in Istanbul Exceeds 18 Thousand Lira

The expected increase in compulsory traffic insurance tariffs, closely followed by millions of vehicle owners, came into effect as of July. According to the new tariff tables announced by the Insurance Information and Monitoring Center (SBM), an average increase of approximately 4 percent was made to policy premiums. This situation slightly increases the financial burden on vehicle owners and brings the necessity to make new budget adjustments. The hike has particularly affected drivers by pushing premiums even higher in regions with high accident density.

When the details of the new tariff are examined, it stands out that premium amounts have reached serious levels in metropolises like İstanbul where traffic is dense and the risk of accidents is considered high. According to SBM data, the minimum compulsory traffic insurance premium amount applicable across İstanbul has been determined as 18 thousand 789 lira, depending on policy details and the driver's risk profile. This figure represents a clear increase compared to previous months and demonstrates that insurance costs for vehicle owners are inevitably rising. Drivers whose address is in a risky region, despite having a low accident history, are among the most affected groups by this situation.

Alongside this increase in insurance premiums, penalties continue to be toughened for vehicle owners who prefer not to get insurance. Vehicle owners who take to the road without compulsory traffic insurance, which is mandatory by law, are fined if detected. These penalties, which are not limited only to fines, also bring more serious consequences such as the banning of the vehicle from traffic. Therefore, getting compulsory insurance is of vital importance to avoid criminal sanctions, regardless of the financial burden.

Sector representatives and economists state that the primary reason for the increase in insurance premiums is the rise in vehicle repair costs and the increase in the cost of living. However, consumers continue to view compulsory traffic insurance as a burden due to the combination of increasing premiums and the high cost of living. With the new tariff, vehicle owners need to consider this cost during the process of renewing their existing policies or purchasing a new vehicle. Insurance companies apply different pricing by taking into account criteria such as the make, model, and age of the vehicle, as well as the driver's accident history while determining premiums for each vehicle and driver.

As a result, the 4 percent hike valid as of July has had an upward effect on traffic insurance costs across Turkey. The lowest premium amount in İstanbul, rising to 18 thousand 789 lira, stands as a concrete example of this increase. Vehicle owners should take care not to delay insurance transactions to avoid facing legal obligations and possible penalties. The course of pricing in the insurance sector in the coming period will be shaped depending on inflation data and possible regulations by the government towards the insurance sector.