HomeAutomobilesCar insurance: prices still higher, +7.1% in November 2023

Car insurance: prices still higher, +7.1% in November 2023

The ascendancy of the divine entities, commonly known as insurance gods, continues to cast a formidable influence on car insurance prices in the picturesque land of Italy. According to the illuminating data furnished by Ivass in November 2023, the average price has soared to the lofty altitude of 391 euros. This marks an increment of +7.1% on an annual basis in real terms, coupled with a +7.8% surge in nominal terms.

While the average price still lingers below the pre-COVID era, precarious proximity to the 2019 figure of 402.74 euros poses the imminent threat of a swift reversal in the downward price trajectory. This trend, a beacon of stability since 2013 and persisting into the concluding months of 2022, teeters on the brink of an abrupt about-face.

Unveiling the Enigma: Why the Ascent in Car TPL Prices?

The regulatory custodian, Ivass, remains enigmatic about the explicit reasons behind these price escalations. However, the weight of these increases is palpably borne by the broader economy, encompassing inflation and a surge in the frequency of complaints. Translated into the metric of accidents per 100 cars in traffic, there has been an alarming increase from 3.1% in 2021 to 3.34% in the annals of 2023. This statistical surge poses a conundrum, and the nebulous reasons behind the ascent are tethered to a complex interplay of economic variables.

Car insurance

It is this very complexity that hints at a potentially brighter future, albeit with cautious optimism. Inflation, the lurking specter haunting economic realms, seems to be exhibiting signs of a slowdown. December 2023 witnessed a rate of 0.6%, a significant dip from the 0.8% recorded in November. The month-on-month decline from the highs of 1.7% in October and a staggering 5.3% in September further fuels hope that the forthcoming months might witness a positive reflection on auto insurance rates.
See also: India’s Luxury Car Market Shines in 2024 Despite Challenges

Navigating the Price Landscape: Naples Takes the Pinnacle

As the narrative of ascending car insurance prices unfolds, the geographical landscape plays a pivotal role. In November 2023, the provinces that witnessed the most substantial annual increases were Empire (+12%), Lodi (+11%), Terni (+11%), Vercelli (+11%), and the eternal city of Rome (+10%). Amidst this symphony of escalating prices, Naples emerged as the most expensive province, with a staggering 559.99 euros, leading the ranks.

It overshadowed other contenders like Prato (559.12), Caserta (501.16), Pistoia (487.14), and Florence (474.67). However, the provinces that basked in the frugality of lower prices were Anna (275.15 euros), Oristano (292.34), Potenza (297.18), Pordenone (310.08), and Aosta (312.02). The chasm between the most expensive and the most economical province yawns wide at 284.84 euros. Notably, the premium delta between Naples and Aosta, the two provinces serving as Ivass reference points for territorial differences, stands at 247.97 euros, reflecting a +3.1% annual increment.

Car insurance

Symphony of Disparities: Meritorious Classes Bear the Brunt

Delving deeper into the Ivass data, a poignant revelation surfaces: for those motorists languishing in the purgatory of penalization, specifically those in the meritorious classes from 2 upwards, the average annual increase compounds at an alarming +11%. This presents a disconcerting disparity compared to the overall +7.1% uptick in average liability insurance.

It’s crucial to acknowledge that a majority, roughly 85%, find themselves ensconced in the comforting embrace of the first class of merit. The catalysts behind this demographic distribution trace back to legislative interventions such as the Bersani Law and the more recent Family RC. This prompts astute professionals to question the relevance and efficacy of the bonus-malus system, deeming it antiquated in the face of evolving driving dynamics and socio-legal frameworks.

As we grapple with the intricate dance of economic variables, geographical nuances, and the human element within the realm of car insurance, the emotional undertones of frustration and hope play out. The stage is set for a saga that intertwines the celestial machinations of insurance gods with the very real impacts on the lives of motorists, painting a canvas where the colors of uncertainty and resilience blend in an ever-evolving narrative.

Car insurance

The rise of the gods continues car insurance prices in Italy: based on data from Ivass a November 2023 the average price has reached altitude 391 increasing by +7.1% on an annual basis in real terms and +7.8% in nominal terms. The average price level is still below that seen in the pre-Covid period, but we are dangerously close to the 2019 figure (402.74), with the risk of a rapid reversal of the downward price trend that began in 2013 and continued into the final months of 2022, before a sudden trend reversal.

WHY CAR INSURANCE PRICES GOING UP?

The supervisory institute does not specify the reasons for the increases, but they weigh on the economic inflation and increased frequency of complaints to the number of accidents per 100 cars in traffic, which increased from 3.1% in 2021 to 3.34% in 2023. Precisely for this reason the future could be brighter albeit by all means, given that inflation is said to be slowing significantly (0.6% in December 2023 compared to 0.8% in November, 1.7% in October and notably 5.3% in September), which could positively reflect auto insurance rates from the next few months.

CAR TPL CAR: NAPLES IS THE MOST EXPENSIVE PROVINCE

In November 2023 higher increases on an annual basis were observed in the provinces Empire (+12%), Lodi (+11%), Terni (+11%) and Vercelli (+11%), and Rome (+10%), while the overall higher average price was registered to Naples with 559.99 euros ahead of Prato (559.12), Caserta (501.16), Pistoia (487.14) and Florence (474.67).

However, the provinces were the cheapest Anna (275.15 euros), Oristano (292.34), Potenza (297.18), Pordenone (310.08), and Aosta (312.02). Means, that between the most expensive province and the cheapest one there is a huge difference of 284.84 euros while the premium difference between Naples and Aosta (the two IVASS reference provinces for tracking territorial differences) is 247.97 euros, +3.1% per year.

car insurance

CAR TPL: LARGER INCREASE IN FIRST CLASS OF MERIT

Another significant figure from the Ivass data: if the average liability insurance increased by +7.1% in November 2023, the situation worsened for motorists who are in penalization of meritorious classes 2 upwards: for them the average annual increase was uniform +11%. However, it should be taken into account that the majority of drivers (around 85%) are in first class merit, especially as a result of the Bersani Law and the more recent Family RC. This is why many professionals question the bonus-malus system, considering it outdated.

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  • Geekay Dutta

    Welcome to my world! I'm Goutam Kumar Dutta, the brains behind this platform. As an author and the proud owner of this site, I'm on a mission to bring you the latest and most intriguing sports news from various genres. But it's not just about sports - entertainment in all its forms also captivates my interest. Whether it's analyzing the latest match or delving into the world of entertainment, I strive to provide comprehensive coverage and valuable insights.

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