MADRID: According to a study published by Kelisto, in the month of March alone the average car insurance premium rose by 6.93% to 599.45€, and insurance companies have confirmed that “moderate” further increases are on the cards.
If the trends of last year are repeated then premiums could come down slightly in May and June, but not enough to satisfy Manuel Moreno of Kelisto. He maintains that market prices are still too high in many cases, and recommends that motorists shop around before contacting or renewing their policies.
At the same time, other analysts point out that in theory, if the economic recovery leads to more new cars being sold, then this should lead to the vehicles on Spanish roads becoming safer. This would offset the rise in insurance payouts due to there being more road users, thus removing the need for increased premiums.
A convincing argument, but one which is unlikely to change the minds of Spanish car insurance bosses, particularly in the light of reports that the government is considering scrapping its Pive plan which has effectively given motorists trading in an old car a subsidy towards buying a new one for several years as a move to support the car manufacturing industry in Spain.
