AZE.US
Drivers in Azerbaijan are reporting significant increases in compulsory motor insurance premiums, with some saying they are now paying two or three times more than last year.
One motorist said his new policy cost 270 manats ($159), compared with approximately 65 manats ($38) a year earlier. Another driver reported that his premium had risen from 78 manats ($46) to 178 manats ($105).
The increase has been linked to a new risk-assessment mechanism that considers not only the vehicle owner’s driving record but also the records of people authorized to drive the car under a power of attorney.
If several people are permitted to use the same vehicle, insurers apply the risk coefficient of the driver with the highest-risk history. As a result, even if the registered owner qualifies for a discount, the policy may cost more because of accidents involving another authorized driver.
Under the new rules, an at-fault accident is added to the responsible driver’s insurance history through their personal FIN identification code, regardless of who owns the vehicle or whose name appears on the insurance contract.
Experts say the compulsory insurance premium may increase by approximately 30% for each at-fault accident.
Insurance companies also point to rising vehicle repair and spare-parts costs as another reason for higher premiums. The revised system is intended to make pricing more individualized, allowing drivers with safer records to pay less while charging higher-risk motorists more.
AZE.US