Car insurance prices may go 15% higher

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The labor shortage is impacting car insurance prices. The acute shortage of car mechanics has triggered higher salaries, which in turn impacts insurance premiums, according to brokers.

Insurance companies are expected to communicate their prices for 2018 MTPL (mandatory third-party liability) insurance soon. A new factor may contribute to the calculations, according to insurance broker firm CLB, as quoted by business daily Világgazdaság.

Although the salaries of car mechanics have skyrocketed in the last few years, the labor shortage is so high that employers are willing to do anything to keep them. This is also taken into account when calculating next yearʼs MTPL insurance prices.

According to CLB estimates, the 2018 car insurance prices will be 10-15% higher compared to this year. Insurers will start releasing their new prices from November 2. Customers will need to decide by December 1 if they wish to end their current insurance contract, and select a new provider by December 31.

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