You must not take your car on the road without compulsory insurance. This is statutory insurance. Many factors influence its cost, from your age to the type of car you drive to the purpose for which you will use the car. How do you find out the price of compulsory third party insurance and what all factors come into play in determining it?
The price of compulsory liability insurance is never fixed and can vary considerably depending on a number of factors. You may be one of those people who think that the premium depends only on the type of vehicle and the age of the driver. But the reality is much more complex. Insurance companies use dozens of variables to calculate the price of compulsory liability insurance, which include not only personal and technical data, but also risk-related statistics and then a large number of internal algorithms. If you don’t want to pay too much, it’s best to use price comparisons and online compulsory insurance calculators. These online tools allow you to compare quotes from different insurers and find the best one.
Insurance companies have a legal obligation to set prices transparently and fairly. In this case, the Czech National Bank acts as a supervisory authority to ensure that compulsory insurance prices comply with legal requirements and that insurers do not discriminate against customers on the basis of unjustified factors. As a consumer, you also have the right to defend yourself against unreasonable price increases.
One of the most important factors that insurance companies take into account is the age of the driver and how long they have held a driving licence. Statistics clearly show that young drivers (especially those under 25) are more likely to be involved in accidents. This is why insurance companies hedge their bets and the price of compulsory insurance is usually higher for these drivers. In contrast, older and more experienced drivers have an advantage and can expect lower premiums. For example, a 20-year-old driver with a conventional vehicle may pay double what a 50-year-old driver with the same car will pay.
The bonus-malus system is a tool that rewards drivers for safe driving and penalises those who cause accidents. If you have an accident-free driving record, you get a discount on your insurance premiums. Conversely, every accident can mean a price increase for you. This discount or surcharge is usually expressed as a percentage and can increase or decrease over the years. For example, five years of accident-free driving may mean a discount of several tens of percent on your compulsory liability insurance.
Try an affordable attorney! Our legal clinic is here for anyone who needs help with any legal issue. You’ll get an answer within 48 hours, and we’ll advise you on how to proceed if necessary. We are here for you, whatever you are wondering about, a lawyer can help you.
I want an answer to my question
Other key factors that affect the price of third party insurance are the type of vehicle and its performance. More powerful and faster vehicles, such as various sports cars or SUVs, tend to cost more. Again, statistics play a role here. These show that drivers of these vehicles are more likely to be involved in accidents or have higher accident damages. Conversely, small and economy cars, which are generally considered less risky, have lower premiums.
Insurers also take into account where you register the vehicle when calculating your compulsory insurance premiums. High-traffic areas such as large cities have a higher risk of you crashing than smaller towns with less traffic or rural areas. That’s why it will cost you more to register your car in places with a higher number of accidents, such as Prague or Brno.
Yes, the purpose for which you use your car also plays a part in the price of compulsory insurance. Simply put, the more you drive, the more you pay. That’s because if you use your car for regular business trips or for commercial purposes, such as a taxi service or car sharing, then you’ll pay extra on your compulsory insurance. On the other hand, if you only use the car for occasional trips to work and the doctor’s or a weekend trip somewhere, the price will be lower. Because the less you drive, the lower the risk of causing an accident.
How much money will you need to cash out from your insurance company in the event of an accident? This also plays a role in determining the price of compulsory liability insurance. This is because it can have different levels of cover. Standard limits are in the order of around 50 million crowns. However, if you choose a higher level of cover, for example even CZK 100 million, then the price of compulsory liability insurance can increase significantly. Therefore, always consider carefully how much cover you really need and then adjust your limits accordingly to achieve the optimum price of compulsory liability insurance.
Insurers often offer additional services and add-on insurances that can be included in the compulsory liability insurance. This may include, for example, glass insurance, roadside assistance or theft insurance. These add-ons obviously increase the cost of the compulsory insurance, but sometimes you may appreciate them, especially if you travel abroad often or have an older vehicle that may be more at risk of breakdowns.
Tip: Car scams are on the rise. How to check the legal status of a car when buying? We’ll tell you what to look out for.
Insurance companies use sophisticated models that combine historical accident data, statistics and algorithms to calculate the price of compulsory liability insurance. These models take into account not only personal data, but also broader factors such as the length of time you have been with the insurance company, changes in insurance companies, your payment history and other relevant information. As a result, premiums can vary from one insurance company to another, even though you have the same vehicle and the same conditions.
If you’re wondering how to reduce the cost of compulsory third party insurance, then the first thing you should do is use a compulsory third party insurance calculator and various online tools such as compulsory third party insurance comparators. These will help you to easily find out which insurance company offers the best compulsory insurance price for you. A compulsory insurance calculator will save you time and money by allowing you to compare prices and conditions of different insurance companies in a matter of minutes.
Another, and almost the most effective way to reduce the cost of compulsory liability insurance is to drive as accident-free as possible. The more years you go without an accident, the more discounts you can expect on your premiums. This system is therefore very beneficial for responsible drivers who avoid accidents and pay their insurance regularly.
Some insurance companies may offer you a better price for compulsory third party insurance if you take out more than one insurance policy at the same time, i.e. in addition to compulsory third party insurance, you can also take out accident insurance or even home insurance. This approach can also significantly reduce your total insurance costs.
If you want to find out the exact price of compulsory liability insurance for your specific case, use the compulsory liability insurance calculator, which will calculate the price of insurance for you based on a few basic data such as the age of the driver, type of vehicle, place of registration, etc.
Tip: Are you planning to transfer your car to a new owner? We’ve written down all the potential risks that await you when transferring your car so you know what to look out for.
The cost of compulsory third party insurance depends on many factors, including the age and experience of the driver, the type and performance of the vehicle, the place of registration, the purpose for which the car is used and the bonus-malus system. Insurance companies use sophisticated algorithms and statistics to calculate premiums, with regulation by the Czech National Bank. Compulsory insurance calculators and online comparators help to find the best deal. The main ways to reduce the cost of insurance include accident-free driving, choosing the right policy limits and combining multiple policies with one insurance company. Drivers should watch out for hidden charges and excess insurance.
Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
In person and online. Just choose the appropriate service or opt for an independent consultation when you are unsure.
