Why comprehensive car insurance is getting dearer: newer cars, parts and repair costs

New approaches to voluntary motor insurance (known locally as kasko) are being introduced in Azerbaijan. In material published by navigator.az citing the newspaper Kaspi, the first deputy chairman of the Central Bank, Aliyar Mammadyarov, says the changes aim to align practice with international insurance principles, define the parties' rights and obligations more clearly and improve consumer satisfaction.

The reason for the rise: the fleet is changing

Emil Aghabaghirov, a member of the expert group of the Azerbaijan Insurers Association, links the increase to newer-generation cars: there is no second-hand parts market for them, and hybrids, plug-in hybrids and electric cars cost over 20,000 manats. Cover used to be taken out mostly on cars in the 15,000-20,000 manat range. He adds that the product can be bought in instalments, and that a micro-insurance mechanism is envisaged in future.

Transport expert Adil Nabiyev adds dearer spare parts, rising repair costs (especially for hybrids and electric cars), exchange rates, inflation, service prices and growing claim payouts to the list of causes.

Our catalogue supports that explanation

As of 12 September 2026, of the 21,884 listings priced in manats in Prayk's Cars section, 32.5% (7,121 listings) are priced at 20,000 manats or above. Average asking prices by fuel type: petrol 19,400, diesel 22,300, hybrid 29,700, plug-in hybrid 45,300, electric 46,600 AZN. The expert's point that newer-generation cars cost above 20,000 manats is thus visible in open supply data too — as insured value rises, so does the premium.

What to check when buying cover

We keep the practical checklist from the article as it stands: which risks the policy covers, the excess amount, the grounds for refusing a payout, which garage will carry out repairs, whether original parts are used, territorial limits, whether a replacement car is provided, and payout deadlines. The expert's conclusion: «Cheap cover is not always the better choice».

To check a car's market value, use the «What is it worth?» calculator — so you have a real range in hand when the sum insured is discussed.

Source: navigator.az, 8 August 2026 (Kaspi newspaper material).