Record-breaking price for car insurance

Record-breaking price for car insurance

Car insurance price has increased overnight with 45%, reaching the highest historic level in the internal market.

"We have been informed about this price increase. It is 19.800 ALL for cars with a motor lower than 1.6 liters, and 20.900 for over 1.6 liters", declared Shpetim Halilaj, Insurance Agent.

Insurance prices fell to minimal levels two years ago, raising a concern that the market might be unbalanced, since officials said that a minimal risk price for companies to be stable was 14.000 ALL. Compared to that time, prices have increased with five times.

The Public Insurance INSIG Company Director says that now they show the real insurance cost. But consumers feel frustrated about this strong increase for a product that the government forces them to buy.

The insurance fee has always been a hot topic, and many accusations have been made for companies agreeing on prices.

"I don't believe there is a proper agreement, but some kind of silent agreement, or mutual thinking that the only way to leave this vicious circle is this. INSIG is obliged to follow the market, even when the market goes up or down, or you're outside the market", Kalaja declared.

The Competition authority says that there is no information about a price change in block, and that if they will find out about this, they will take the necessary decisions. But in 2012, the Competition Authority fined 9 insurance companies with 700.000 USD for violating article 4 of the competition, which deep inside is a creation of a cartel, and an agreement for fixing prices, including the government's company INSIG. The Court of First Instance found this decision non offensive, but it was rejected at the Court of Appeal.