How MTPL premiums are calculated

October 2021

We cannot please with one specific answer and unchangeable truth, because there is no single formula according to which your MTPL insurance premium would be calculated. It is for this reason that each insurer's policy prices are so different. One clear, important factor in the MTPL price is your Bonus Malus, or BM class. Read more about it in the article What's Bonus Malus.

The following parameters can also be factors influencing the MTPL price:

There are definitely other factors that insurers take into account when calculating the MTPL price. To find out what exactly, ask your insurance specialist. But now let's look at each of the above factors below.

Vehicle type

If you own a van or a heavy vehicle, then the MTPL price will definitely be higher than if your vehicle is a mid-range car. For tractor equipment, as it moves relatively infrequently or seasonally, the price of OCTA is low, the same goes for trailers. In the case of motorcycles, they also move seasonally and a MTPL policy is required, for a maximum of 9 months a year, so the MTPL price for these other units will be lower than the price of the truck policy.

Purpose of use of the vehicle

The purpose for which the vehicle is used is also important. If your company is registered as a taxi service provider, then the MTPL price will be much more expensive than the usual plumbing SIA policy price (under the same conditions, taking into account the fact that none of the companies have had insurance events).

Vehicles that are on the road every day, such as delivery vans, passenger carriers, collectors, have a much higher risk of being involved in a road accident (causing it), so the price of a policy can also be higher.

Driver's driving experience

An important factor is the age and experience of the driver. With age comes experience and driving intelligence, which is why it is such an important factor in calculating the MTPL price. Of course this does not apply if there are 5 road accidents in your history and the insurer pays the indemnity every year.

Place of residence

What difference does a declared place of residence make? You will agree that traffic intensity in Riga (the capital) differs from what it is in not so dense cities. This is a good risk assessment factor for insurers. If you (the car owner) have been declared your residency in a big city, it can be assumed that you have moved around the city with this vehicle and therefore your MTPL policy may be more expensive than for a neighbor declared in a smaller town in coutryside.


This is not taken into account when calculating the MTPL price, but if you own a farm registered, then you are entitled to a 30% discount on the MTPL insurance policy.


If you or your relative has a disability of the 2nd or 3rd group, then when forming the policy, indicating the number of the disability certificate, you will be entitled to a 40% discount for MTPL insurance.

History of claims

The most important factor in calculating the price is the history of traffic accidents in the entire history of your driving experience. This is the main factor that is taken into account when calculating the price of your policy for the new insurance period. If you have traveled responsibly in the previous MTPL policy period, then the policy should not become more expensive, but if there has been a traffic accident for which you are to blame, then the MTPL price may increase in the next insurance period.

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