Turkey warns of soaring vehicle insurance premiums and 7 million uninsured cars

Turkey’s insurance sector is facing a sharp rise in traffic and kasko premiums, prompting warnings from industry leaders. Ahmet Yaşar, president of the Turkey Insurance Union (TSB), said “the basic aim of the insurance system is not to generate premiums but to bear the financial burden when a risk materialises.” He noted that more than 34 million vehicles are registered, that roughly 25 million lack kasko coverage and that about 7 million have neither mandatory traffic insurance nor kasko. Yaşar reported that total payouts for traffic and kasko claims rose 36 % year‑on‑year to 114.4 billion lira, covering 1.1 million people, while the average traffic premium increased only 8 % (from 8,684 lira to 9,410 lira), lagging behind inflation.

Bendevi Palandöken, head of the Turkey Craftsmen and Traders Confederation (TESK), criticised the price hikes, saying “people are paying almost the price of the car in insurance; they can’t afford it.” He highlighted price differences between insurers – for the same vehicle some quotes range from 60 000 lira to 90 000 lira – and warned that annual increases near 100 % are “unacceptable.” Palandöken called for a unified pricing model, stricter regulation and a ceiling‑floor system to restore consumer confidence and reduce the growing number of uninsured vehicles.