The price of mandatory "Third Party Liability" insurance in Bulgaria does not report an unusual increase in price and remains comparable to the levels of 2021. This was reported by BTA, citing the Chairman of the Management Board of the Association of Bulgarian Insurers Nikolay Stanchev, who outlined market trends and the upcoming introduction of the "bonus-malus" system at the beginning of 2027.
According to the industry organization, the average market price for the mandatory car policy has shown minimal growth against the background of general economic processes. Over the past five years, the premium has increased by about 6.5%, while inflation for the same period is about 42%, and the costs of repairs and labor have jumped by over 105%.
“In recent months, there has indeed been some movement in prices for some categories of vehicles. This is largely a natural reaction of the market after the disappearance of an insurer that for years offered policies at prices below cost“, Nikolay Stanchev told the agency.
He recalls that the main goal of insurance is to guarantee protection for people injured in road accidents, which is why the policy must remain affordable, but also provide the necessary financial resources for compensation.
Currently, an expert working group with the participation of motorcyclists, institutions and insurers is discussing the possibility of introducing “seasonal“ insurance. The association's chairman explains that the premium is determined by the risk, not just the term of coverage. The months in which motorcycles are actively used carry the highest risk of accidents. A major issue for seasonal policies is what happens to the registration of the vehicle outside of the months of coverage, since the law requires valid insurance throughout the registration period.
In parallel, the “bonus-malus“ system is expected to finally come into effect in 2027. Following the adoption of two key regulations, the Guarantee Fund and companies must adapt their information systems. The new model will allow data sharing between all companies.
“Drivers with a good insurance history will be able to receive better conditions, and those who cause damage more often will pay a higher premium. This is the main idea of the system - the price of insurance should more accurately reflect the real risk,“ explained Stanchev.
In recent years, Bulgarians have increasingly taken out insurance of their own free will, rather than out of obligation. The share of people who take out insurance solely due to a legal or contractual requirement has dropped dramatically – from 59% in 2020 to 32% in 2026.
Quality insurance for an average apartment costs between 60 and 100 euros per year. Due to the increasing frequency of natural disasters, property insurance is expected to grow significantly by over 24% in 2025, and the share of people with such a policy has doubled compared to 2020, reaching 31%.
There is also a positive trend in agricultural insurance, stimulated by state co-financing of up to 70% through the State Fund “Agriculture“. Health insurance is also growing by 23% in 2025, driven mainly by employers who offer it as a social benefit for about 600,000 employees in the country.