Types and prices of compulsory car insurance

 Types and prices of compulsory car insurance Blog Image
10 July 2023

Car owners follow the price of the compulsory car insurance policy in Egypt continuously, as it changes according to the value of the Egyptian currency, due to the fact that this type of insurance is compulsory and the owner is not entitled to evade payment, as the insurance guarantees compensation for accidents that lead to partial or total damage to the car, provided that the Egyptian traffic law is not violated.

What is compulsory car insurance?

Compulsory insurance is one of the main documents accompanying the owner's obtaining a car license, as it is issued by virtue of the law responsible for car insurance in Egypt, where the owner is not entitled not to pay the value of compulsory insurance that allows the owner to drive on public roads, and this is done by paying the insurance value, which is determined based on:

  • Car type.

  • Engine capacity.

Compulsory car insurance in Egypt includes coverage for road accidents, or any other damage to the car, bearing in mind that this type of insurance is intended for the benefit of public utilities and not for the owner of the car.

Criteria for determining the price of a compulsory car insurance policy

There is no specific amount to pay the price of the compulsory car insurance policy, as the determination of the amount depends on several criteria, the most important of which are:

  • Engine capacity.

  • Car type.

  • Year of production.

It should be taken into account that the value of insurance is not fixed due to the instability of the Egyptian pound, so it is necessary to follow the price of the compulsory car insurance policy periodically.

What is the relationship between engine capacity and the price of a compulsory car insurance policy?

The annual insurance amount on the car depends on its engine capacity, where:

  • A car with an engine capacity of 1030 cc estimated annually at a value of 225 EGP.

  • A car with an engine capacity above 1030 cc up to 1330 cc is estimated annually at a value of 350 EGP.

  • A car with an engine capacity above 1330 cc up to 1630 cc estimated annually at a value of 750 EGP.

  • A car with an engine capacity above 1630 cc until 2030 cc is estimated annually at a value of 800 to 3000 EGP.

This is taking into account that the insurance value decreases by 10% annually as a year passes since the date of production of the car.

How to collect the compulsory car insurance policy fees؟

Several steps are followed to pay the price of the compulsory car insurance policy, where:

  • The owner of the car goes to pay the insurance value at its traffic department.

  • Payment is made upon obtaining the license or renewal.

  • The security deposit is collected through the insurance company with the signature of a declaration in favor of the facility.

  • In the event of damage to the car, the owner or his family will receive a compensation amount of up to 40 thousand pounds.

  • In the event that the owner of the car caused an accident that led to total disability of the injured, an amount of 10 to 15 thousand Egyptian pounds (civil liability) is paid, but in the event that the accident leads to death, the insurance amount is transferred to the heirs of the deceased.

Who is responsible for paying the compensation amount?

The insurance company shall pay the value of the compensation in the event that the data of the car is contained in the prosecution report, but in the event that the accident leading to death is registered in an unknown car, the damages and damages associated with an accident are compensated through the government fund dedicated to vehicle accidents in Egypt, as the compensation is paid to each individual who was inside the car and was injured.

What is the difference between compulsory insurance and supplementary insurance?

Compulsory insurance is one of the provisions of Egyptian law, as the price of the compulsory car insurance policy must be paid to complete the car license, while supplementary car insurance differs in the type of coverage provided by the insurance company and the customer's freedom to accept or reject it, as it is divided into 4 types:

Type I (civil liability insurance): The insurance company shall pay the damages caused by the customer in the event of accidental collision with another car, provided that the damage to his car is not covered.

The second type (fire and theft insurance): The insurance company bears the damages and damages caused to the car as a result of fires or thefts, and the car is required to be left in one of the private or public garages.

The third type (civil liability insurance, fire and theft risk): This type includes insurance against the first and second types together.

Type IV (Comprehensive Coverage): This type includes all the previous types, in addition to compensating the customer for damage to his car following the collision resulting from the accident.

Finally… 

Egyptian law provides for the imposition of compulsory insurance on car owners in Egypt, as this type of insurance includes different types of cars, as the price of the compulsory car insurance policy is determined according to several criteria, the most important of which is engine capacity.