Motor third-party liability insurance prices reflect rising compensation costs and the need to ensure financial protection in serious accidents.
According to data from the Financial Supervision Commission (FSC), premium income from Motor Third-Party Liability insurance in 2025 increased by around 3%, while claims paid rose by more than 31%.
Bulgaria ranks among the countries with the highest number of claims caused abroad by vehicles registered domestically.
The Association of Bulgarian Insurers (ABZ) has issued a statement in response to the public debate and tensions within the transport sector regarding the pricing of compulsory Motor Third-Party Liability insurance for heavy goods vehicles. The statement stresses that the issue should be viewed through the lens of the actual economic factors affecting insurance pricing, as well as the regulatory framework governing motor insurance within the European Union.
“Transport operators are a vital part of the economy, and it is entirely understandable that any increase in their operating costs raises concerns about competitiveness. This is precisely why we believe it is important to provide clarity on the factors that determine the price of Motor Third-Party Liability insurance,” ABZ states. At the same time, specific pricing levels are part of the independent commercial policy of each insurance company and depend on its own risk assessment, business strategy, and market objectives.
Motor Third-Party Liability insurance is not an administrative fee, but an insurance premium that must reflect the actual level of risk and the expected cost of claims. Bulgarian insurers operate within a common European framework under which a policy issued in Bulgaria provides coverage throughout the European Union. This means that in the event of accidents in other Member States, the costs of repairs, medical treatment, and compensation may be significantly higher than those in Bulgaria.
At the same time, according to Green Card system data, Bulgaria ranks eighth out of 47 member countries in terms of claims caused abroad by Bulgarian-registered vehicles. FSC data show that the claims frequency for heavy goods vehicles over 5 tonnes is approximately nine times higher than for passenger cars, while the average claim amount is around three times higher. Between 2020 and 2025, the average size of claims involving such vehicles increased by more than 50%, in line with overall inflation levels across Europe.
A similar issue is emerging in the motorcycle segment, where insurers are finding it increasingly difficult to accumulate sufficient funds to cover claims at the premium levels of previous years. In addition to inflation, the shortfall is linked to a high proportion of policies terminated due to unpaid instalments. Market data indicate that more than half of motorcycle insurance policies over the past five years were terminated early. Some of these vehicles subsequently continue to operate without valid insurance, while claims caused by them are covered by the Guarantee Fund. Since 2020, the Fund has paid nearly EUR 2 million in claims caused by uninsured motorcycles.
The statement also notes that insurance markets across a number of European countries have been experiencing similar pricing pressures in recent years due to rising costs for spare parts, repair services, labour, and compensation payments. At the same time, according to FSC data, Motor Third-Party Liability premium income in Bulgaria increased by around 3% in 2025, while claims paid rose by more than 31%, placing serious pressure on the system.
Attention is also drawn to the importance of the Green Card system for the international reputation of the Bulgarian insurance sector. Bulgaria has already gone through a period of enhanced monitoring, which was officially lifted in 2025. According to ABZ, maintaining the stability of the system is especially critical at present, both for international transport operations and for confidence in the Bulgarian market.
ABZ further emphasizes that the European legal framework — including the Motor Insurance Directive and the Solvency II regime — places clear limits on state intervention in pricing. In this context, the government’s stated opposition to administrative price freezes is described as “the only lawful and economically sustainable approach.”
“Compulsory Motor Third-Party Liability insurance serves an important public function — it guarantees protection for injured parties and financial security in the event of serious road traffic accidents. This is why its price must reflect the real level of risk and the actual cost of compensation payments,” the statement says.
A stable and predictable insurance market is in the interest of transport operators and businesses, as well as the state, injured parties, and Bulgaria’s international reputation, ABZ concludes.
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