MTPL is compulsory, but its price is not fixed – for the same car, different insurers may charge different amounts. Here is what it depends on and how to pay less.
What determines the MTPL price
The MTPL premium is calculated based on several factors. The main ones are the vehicle parameters (power, age, type), place of registration, policy term and, above all, your insurance history (previous at-fault MTPL claims).
The insurance-history system
On 1 August 2024 the former Bonus-Malus system was replaced by a centralised insurance-history system run by the Latvian Motor Insurers' Bureau (LTAB). Instead of complex classes, it simply shows the number of insured days and how many at-fault MTPL claims have been recorded for you as the driver. The longer your uninterrupted insurance history without at-fault accidents, the more favourable the price. The history is available free on the LTAB website and mobile app and is updated daily.
How to legally pay less
- Compare several quotes – the difference for the same car is often 20–40%.
- Choose an optimal policy term – a twelve-month policy usually costs less per month than a series of short ones.
- Keep track of your insurance history on the LTAB website and avoid notifying minor losses you could comfortably pay for yourself.
- Renew on time – with no gap between policies, to avoid fines and sanctions.
Tip: before your policy expires, send me your plate number and I will compare relevant insurers' prices – free and with no obligation.
The most common mistake
Many people automatically renew with the same insurer without checking the market. Prices change every year, and last year's cheapest may not be this year's. A comparison takes a few minutes and can save tens of euros.
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This article provides general information and is not individual insurance advice. The actual cover depends on the chosen insurer's wording and the special conditions of the policy.