The cost of car insurance in Italy has increased by approximately 10.5% compared to two years ago, according to data from Federcarrozzieri. In January, the average cost of a policy in Italy was 389 euros, up from 352 euros in January 2022. Three provinces exceeded the 500 euro threshold for insurance, with Napoli leading the way at an average cost of 560 euros, followed by Prato at 553 euros and Caserta at 500 euros. The region of Tuscany has six cities in the top ten list of costly insurance, while Enna is the most affordable province with an annual rate of 287 euros.
Italian drivers are among the highest-paying in Europe, with the average cost of car insurance in 2023 being around 304 euros in Germany and 371 euros in Spain, and 397 euros in Sweden. Only France and the United Kingdom have a higher annual cost at around 635 euros. Countries with lower rates include Greece (145 euros annually), Hungary (134 euros), and Poland (120 euros). In Russia, it costs the equivalent of 72 euros per year to insure a vehicle, while in the United States, prices range from an average of 428 euros for minimum coverage to 1,847 euros for full coverage (theft, fire, third-party damages).
According to Davide Galli, the president of Federcarrozzieri, all monitored countries have experienced a significant increase in car insurance rates in 2023 and early 2024, despite a general decrease in road accidents. This rise is attributed to the higher cost of car parts, which has led to longer repair times and increased repair costs paid by insurance companies following accidents. The conflict between Russia and Ukraine, as well as logistical issues in international transportation, have caused a chain reaction that has led to a 48% increase in the prices of car parts in Italy from 2021 to present. These increments have resulted in higher costs for insurance companies, which are then passed on to drivers through increased car insurance rates.
The impact of the conflict in Ukraine and logistical challenges in international transportation has led to a cascade effect on pricing. This has resulted in a 48% increase in car parts prices in Italy from 2021 to present. As a result, insurance companies are implementing policies that force repairs through specific channels, such as using repair broker companies that act as intermediaries between the insurance company and the repairer. This practice increases the cost of repairs, lengthens the repair process, and negatively affects the car insurance rates paid by drivers.
In conclusion, the rising cost of car insurance in Italy is largely attributed to the increased prices of car parts, longer repair times, and the use of repair broker companies by insurance companies. These factors have led to a significant increase in car insurance rates, with Italian drivers now paying among the highest premiums in Europe. Despite a reduction in road accidents, the cost of car insurance continues to rise, impacting the affordability of owning and maintaining a vehicle for Italian motorists.
