Competition Heats Up in Motor Insurance: Premium Increases Lag Behind Inflation

Real Decline in Motor Insurance Premiums The insurance sector is experiencing intense competition in the first quarter of 2026.
Price Analysis and Data According to disclosed data, the average motor insurance price for all vehicle groups in January 2026 was 17,500 TL, while it was 16,000 TL for passenger cars.
In the same period of 2025, these figures stood at 15,000 TL and 13,000 TL, respectively.
During a period where annual inflation was recorded at 31%, the increase in motor insurance prices remained at 16% for all vehicle groups and 20% for passenger cars, indicating a decrease in real terms.
Premiums Decline Relative to Vehicle Value Taylan Matkap, Deputy General Manager of Anadolu Sigorta, pointed out that while vehicle values are rising, the cost of motor insurance has decreased relative to the vehicle's value.
Matkap stated that at the beginning of 2025, the premium for a vehicle worth 2 million TL corresponded to 1.4% of its value, whereas today, this ratio has dropped to 1.3% for the same vehicle now valued at 2.5 million TL.
This situation indicates that the proportional cost of motor insurance has eased for vehicle owners.
New Campaigns and Insurance Targets Insurance companies have begun offering various incentives to increase the number of insured vehicles.
In this context, options such as installment plans up to 12 months, coverage for vehicles over 10 years old, and brand-specific insurance products are coming to the fore.
Some companies are also enriching their products by adding unlimited discretionary financial liability coverage to policies.
Ahmet Yaşar, President of Maher Holding Insurance Group and Vice President of the Insurance Association of Turkey (TSB), emphasized that natural disasters have increased the need for motor insurance.
However, noting that the motor insurance rate in Turkey is still around 25%, Yaşar stated that only one in four vehicles is insured, and vehicles over 15 years old generally remain outside the system.
The sector aims to raise this rate through new campaigns.