Rising fuel prices in recent months have also affected the cost of auto insurance in Georgia, according to insurance companies. Mikheil Japaridze, General Director of Ardi, told BMG that the fuel component directly affects the prices of auto parts, ultimately putting upward pressure on insurance premiums.
According to Japaridze, fuel costs are incorporated into the prices of various products, including plastics and spare parts. As these costs increase, insurers face higher expenses when covering vehicle repairs, which is reflected in auto insurance prices.
Another factor contributing to higher premiums was the severe hailstorm that hit Tbilisi in June. Japaridze said the damage caused by the hail negatively affected insurers’ financial performance and contributed to higher vehicle-related costs across the market.
At Ardi, auto insurance premiums have increased by around 5% on average, although the company says sharper increases have been recorded elsewhere in the sector. Japaridze said Ardi does not currently expect further price increases and will wait to assess market results, while noting that significantly higher increases are already being observed across the industry.
