However, a stable number of accidents does not mean stable costs as average claims continue to grow faster than average premiums, making repairs of modern vehicles and compensation for injuries and deaths more expensive.
The total amount of paid insurance benefits from compulsory insurance is expected to reach CZK 20.7 billion (~EUR 0.85 billion) in 2026, which is 43% more than in 2019. Another approximately CZK 2.9 billion will be used to create reserves for future liabilities, which is 44% higher than in 2019. Since 2022, total amount of claims has exceeded the pre-COVID level of 2019 and continues to grow significantly.
According to the data as of June 30, 2026, the inflation for property damage reached 6.7%. "Since the end of 2017, the average premium has increased by 32%, while the average property damage has increased by 76%. Current growth in the average premium is only around 3 to 4%, so the gap between premium and damage keeps widening", said Petr Jedlička, the Chief Analyst and Actuary at the Czech Insurers' Association (Česká asociace pojišťoven - ČAP), describing the increase in damage inflation.
In the entire compulsory insurance, the average amount of repair or total damage of a vehicle increased by 34% between 2020 and 2025, from CZK 43,000 to CZK 58,000. And the same figure increased by 8.4% between the first quarter of 2025 and the second quarter of 2026, from CZK 51,000 to CZK 55,300. This trend confirms that the price of repair is increasingly determined not only by the extent of an accident, but also by a specific brand, age of a vehicle and type of drive used.
In 2026, approximately 11.7 thousand health claims are expected. Although serious injuries and deaths represent only 10% to 14% of all health claims in the long term, they create 59% to 73% of the total volume of liabilities. The expected claim inflation for health claims is also increasing significantly from 2% to 6%.
As of August 31, 2026, the number of insured vehicles had risen by 2.2% y-o-y and exceeded 9.9 million units. A significant part of the GWP growth from CZK 34.7 to 37 billion is therefore attributable to the expanding number of insured vehicles, and not to the increase in average premiums, the Czech Insurers' Bureau noted.
*EUR 1 = CZK 24.34 (as of Nov 5, 2026)
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