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Credit and insurance comparison platform Hesapkurdu.com evaluated the 2020 report card of motor and traffic insurance. In the assessment made, it was stated that despite the increasing number of vehicles, the rate of motor own damage decreased, and traffic accidents that decreased due to prohibitions reduced the amount of financial compensation paid within the scope of traffic insurance.

*** This release is originally published in Turkish.
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ISTANBUL (TR) - During the pandemic period, citizens often preferred to use personal vehicles due to the risk of contamination by public transport. The low-interest vehicle loan campaign offered by state banks between June and August contributed to the increase in vehicle sales during this period. In addition to all of these, the increase in vehicle sales and a year of intense natural disasters such as floods and earthquakes were expected to increase automobile insurance sales in 2020. However, both developments were not reflected in automobile insurance sales. According to TSB reports examined by Hesapkurdu.com, in the first 7 months of 2020, automobile premium production decreased by 3.7%. On the other hand, despite the fact that more than 4 million 500 thousand vehicles came to the traffic without having to have compulsory traffic insurance, with the effect of the decreasing accidents due to pandemic restrictions, there was a decrease of 12.30% in the amount of financial compensation and a decrease of 12.40% in the number of accident reports.

In the first months of the pandemic, there was a 10% contraction in insurance

According to the data of the Automotive Distributors Association (ODD) examined by Hesapkurdu.com, automobile sales increased by 58.9 percent in the seven months of 2020 compared to the previous year, reaching 273 thousand 22 units, while the light commercial vehicle market increased by 65.8 percent to 68 thousand It reached 447 units. In parallel, the frequency of damage to individual vehicles has increased as a result of meteorological disasters such as hail and flood in 2020. According to TSB data analyzed by the credit calculation, comparison and application platform Hesapkurdu.com, this situation was expected to increase motor own damage sales, while a 10.31% contraction was experienced in the insurance during the first months of the pandemic, January-May.

Insurance companies developed insurance products suitable for the period

Commenting on the issue, Hesapkurdu.com Product Development Senior Director Can Paksoy said, “The insurance sector, which declined with the panic experienced in the first months of the pandemic, started to recover again in May-June, when the epidemic began to ease. In the first period of the pandemic, the low traffic of vehicles due to both economic concerns and curfews decreased vehicle insurance sales and at the same time, the tendency to renew the expired insurances started. At this point, insurance companies that developed vehicle insurance products suitable for the period offered products such as monthly Insurance to the market.”

Financial compensation amount decreased by 12% in traffic insurance

In traffic insurance, Can Paksoy pointed out that the amount of pecuniary compensation has decreased due to the decrease in accidents due to pandemic restrictions and said, “The number of accident reports kept as a result of a material damage accident was 663 thousand 68 in 2020. This figure was over 774 thousand in 2019. In the current table, we can say that we have reached the lowest number of accident reports in the last 10 years. We see that the accident compensation amount paid to third parties within the scope of traffic insurance decreased by 12.30% compared to the previous year in 2020, again due to the pandemic effect, and reached 3.2 billion TL. In addition to all these, when we look at the Insurance Information Center (SBM) reports, more than 4 million 500 thousand vehicles are on the road without having to have compulsory traffic insurance. By vehicle, motorcycles have the highest uninsured traffic rates. When looking at the provinces with the highest number of uninsured vehicles, including all vehicle types, Şanlıurfa, Ardahan and Kilis are the first provinces with the highest insurance rate, Trabzon, Ankara and Rize.”