Why is mandatory car insurance becoming more expensive? Drivers demand answers

Driver are facing significant increases in insurance premiums when renewing their compulsory motor third-party liability insurance (MTPL) policies. In some cases, annual premiums have risen by AMD 18,000–30,000, even for drivers who have not been involved in an accident or received an insurance payout for years.

Since the liberalisation of insurance pricing in 2023, insurance companies have been free to develop and apply their own pricing models. What factors are driving the increases? How are risk coefficients assessed and adjusted? And how justified are the new premiums?

The report looks at drivers' growing dissatisfaction and examines the explanations provided by representatives of the insurance industry.