The year 2022 was a tough one for individuals and businesses around the world.
Ghana battled with a weakened Cedi and astronomical price increases. Traders adjusted their prices on various occasions and banks raised lending rates significantly. The Ghana insurance industry showed goodwill with the market and kept away from increasing the cost of insurance protection. Car insurance prices up by 43% continue reading to check new prices.
Effective January 1, 2023, the regulator of insurance, the National Insurance Commission (NIC), has implemented new Motor Insurance prices (tariff) which all insurers are mandated to apply.
Here’s all the gist and how to check what you will be paying at your next renewal.
Among other things, the pricing change is aimed at safeguarding the financial health of car insurance companies so they can continue delivering value to customers.
Before we go into how the new pricing figures out, how about we attempt and understand how car insurance companies managed under the 2022 passive economic conditions.
How the 2022 economic storm influenced car insurance
Insurance claims involve replacement parts, materials, and labor. The cost of parts and materials, all imported, rose sharply during the year. Repair labor costs also surged due to rising cost of living in the country.
In addition to increasing costs, insurers were confronted with significant misfortunes in the value of investments. Typically, the profits on insurance company investments augment gathered premiums for the settlement of claims. Misfortunes on investments leave insurers in a difficult position with regards to their vital job of helping customers recuperate rapidly from financial misfortune in case of accidents.
Car Insurance Prices Up By 43% Check New Prices Here
The new car insurance pricing is different in one notable way
The new pricing categorizes vehicles into 2 groups based on the year of registration:
- Group A: vehicles registered before 2020
- Group B: vehicles registered from 2020 onwards
How much you will pay relies upon which group your car falls in. For example, if you have a Toyota Corolla saloon car which you use for social and private commuting purposes only, you will pay Ghs423 for third party insurance if the registration year is before 2020. If you registered in 2020, you will pay Ghs468. Until the new pricing came into effect on January 1, all private cars used for social and private commuting purposed paid Ghs327.
You can CLICK HERE to check how much you will be paying for your car within 1 minute
READ:Driving Automatic Cars Safely & Mistakes to avoid in 2023 to 2025
What the new prices mean for your pocket
You will be paying up to 43% more for third party car insurance than you did in 2022. Given that the third party price is a factor in determining comprehensive insurance premiums, you will observe an increase in your comprehensive insurance cost as well.