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The price of compulsory liability insurance for a car and what affects it


Every car that goes on the road must have compulsory insurance. This is required by law and is therefore compulsory car insurance.


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Having an insurance policy – i.e., compulsory third-party insurance, the damage you cause to others with your car is dealt with. If you cause an accident, you should also have breakdown insurance to cover the damage to your car, otherwise, you will have to pay for the repairs out of your own pocket.

How the cost of compulsory third-party insurance is calculated

As usual, the price for compulsory car insurance is not uniform and many factors determine the price. In this case, young drivers who have yet to buy a powerful car are at a disadvantage. They could be far overpaying on the annual installment. On the other hand, older people who have not had a road accident for years are at an advantage. This gives them bonuses and therefore discounts on their insurance, at the same time as if they live in the countryside and have a car with average performance. Such a person can then pay only a few hundred crowns a month compared to a young person. Why is that? Primarily because young drivers are a risky group and are expected to crash more often.

In addition, since 2023, prices have been rising slightly across the board, as there are more accidents every year and thus the financial burden of paying claims is increasing. And, of course, those who crash frequently will pay extra. It’s also worth bearing in mind that each insurance company uses slightly different parameters to calculate compulsory liability, so it’s worth trying to use a comparison tool where you can see the prices side by side and decide what’s most economical for you.

Parameters for calculating the price of compulsory liability insurance

However, by default, two variables are used for the calculation – this is, quite unexpectedly, the vehicle and the policyholder. In general, people who have a car for personal use have cheaper insurance, corporate ones are already more expensive. Likewise, if it is a van insurance policy. Even the performance of the vehicle can determine the final figure. And at the moment, the insurance for a diesel car tends to be more expensive than that for a petrol car. The annual mileage and other specifications of the car also affect the price.

And as mentioned, as far as the policyholder is concerned, age and residence are the main factors. A big factor is an accident-free period, for which the policyholder can get bonuses otherwise. In addition, the price of compulsory liability insurance may rise slightly for additional insurance to this policy. This means, for example, additional insurance for natural disasters, collision with wild animals, or a broken windshield.

  • The average price of compulsory liability insurance for a car is around EUR 3,000. However, it is necessary to add that each policyholder has a different annual rate because the above-mentioned variables determine the whole amount. 
  • Thus, some people will pay EUR 1,500 a year, while others will pay EUR 18,000. 
  • Sometimes it is also worth arranging liability insurance online, you can save a few crowns and if you want to arrange accident insurance, it is definitely worth doing both at once and saving money.

How much is the cheapest compulsory insurance for young drivers

Even young drivers cannot avoid compulsory liability. However, since they are a risk group along with the elderly, they will pay much more for insurance. How much does compulsory insurance cost for beginners, and how can I reduce it?

There are several ways to reduce the cost of compulsory insurance for beginners

From the above, it becomes clear that even the cheapest compulsory insurance for young drivers is a relatively significant budgetary intervention. Fortunately, there are ways to reduce the cost of compulsory insurance for young people by several thousand. How to do it?

  1. Take out insurance for an older sibling or parent: Novice drivers without bonuses do not need to take out compulsory insurance for themselves. They can easily cover it for their older siblings or parents. If these drivers have bonuses for harmless driving with another insurance company, they can simply transfer them. With the cheapest insurance policy, the savings in this case amount to almost five thousand euros!
  2. Take out liability insurance for drivers from a smaller town: Drivers in big cities will pay much more for liability insurance than those who drive on roads in smaller towns or villages. The reason is the statistically higher accident rate. If our driver has the opportunity to insure a driver from a smaller city, she can easily save three thousand on the insurance premium.
  3. Pay for the policy for the whole year and online: many insurance companies offer customers a discount for online transactions and a one-time payment for the whole year. Although this is not a large amount as in the previous cases, every extra euro is useful for a young driver.

Why shouldn’t you negotiate for the cheapest compulsory insurance for young drivers?

The price of the cheapest policy is certainly tempting. When choosing, however, it is good to rely not only on this but to choose compulsory insurance with regard to insurance coverage and especially insurance payment limits. If the young driver causes damage that exceeds the agreed limits, he will have to pay for everything additionally from his own pocket.

How useful is a comparison of third-party insurance prices for the average driver?

You can compare compulsory insurance prices that you won’t discover on your own

Another advantage of these comparison sites is that, in addition to public quotes, they often compare non-public products from insurers with whom they have exclusive contracts. The average driver has no chance of getting these offers.

The specific insurance products are then usually ranked according to price, which is a crucial parameter for the vast majority of drivers. The first positions are typically occupied by offers from partner insurance companies with excellent price/insurance protection ratios. Below them, you will find the classic offer, sorted from the cheapest to the most expensive premium.


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