The number of vehicles in Turkey covered by own-damage motor insurance is declining. One reason cited for this situation is that vehicle owners want to cut costs because they are feeling the impact of the economy.
According to data from the Insurance Association of Turkey, the number of cars with own-damage cover stood at 2.97m at the end of September 2019, compared to 3.05m at end-September 2018. Over the 12 months, 78,000 cars gave up such cover, according to local media reports citing the association's data.
Looking at all motor vehicles, the total number of insured vehicles was 4.40m in 2018, and this number has dropped by around 200,000 to 4.21m this year.
Turkey underwent a currency crisis last year which led to economic recession. However, the situation appears to be turning for the better. The government is currently working towards economic growth of 5% for next year.
On 1 November, Fitch Ratings revised the outlook on Turkey's Long-Term Foreign-Currency Issuer Default Rating (IDR) to stable from negative, and affirmed the IDR at 'BB-'. Fitch said that Turkey has continued to make progress in rebalancing and stabilising its economy, leading to an easing in downside risks since its previous review in July.