February 2027 will change car liability insurance prices for drivers

The long-awaited bonus-malus system for civil liability insurance is expected to practically start operating in February 2027, announced Plamen Danaилov, deputy chair of the Financial Supervision Commission (FSС). The regulatory framework and bylaws have been adopted, but the technical implementation requires time for adaptation by insurance companies.

The new rules will directly affect drivers' wallets, but the FSC rejects claims that the system was created solely to drive up prices. At the same time, it notes that the price of civil liability insurance cannot fall for absolutely all drivers.

The system is expected to reflect real insurance claims related to the driver’s behavior and the crashes caused by them, which could foster competition among insurers. Companies will determine their pricing policies and approach to the driver’s incident history, with all tariffs and rules publicly disclosed. The state will not intervene in prices, considering administrative regulation to be a mistaken approach.

In several European Union member states, similar systems have been in operation for decades, and the final price there takes into account damages up to ten years back, a practice that will be applied here as well. At present, no overall increase in insurance cost is expected due to contributions to the Guarantee Fund. The new changes to the Insurance Code aim to significantly shorten the payout timelines for compensations to accident victims, with payout procedures accelerated to reach owed funds more quickly.

Source: Plovdiv24.bg