Latvian road accident numbers stay flat, but their cost keeps climbing

Data compiled by the Motor Insurers' Bureau of Latvia (LTAB) on compensation paid under compulsory civil liability insurance (OCTA) reveal a contradictory trend on Latvia's roads. While the overall number of road traffic accidents has not changed significantly over a five-year period, the cost of covering the damage caused by each accident keeps rising.

Payouts up by nearly a quarter

According to LTAB figures, the average OCTA compensation amount has increased by almost 23% over this period. The average payout per accident now exceeds 1,800 euros. This means that although the overall number of accidents is not growing, the material consequences of each individual incident are, on average, considerably more expensive to cover than they were five years ago.

What OCTA covers

OCTA is Latvia's compulsory motor insurance, which covers damage caused to third parties in road traffic accidents — other vehicles, property, or injured people. The size of these payouts serves as one of the key indicators reflecting the real-world consequences of accidents and the costs involved in resolving them.

LTAB regularly compiles and analyzes data on paid OCTA compensation, tracking trends in Latvia's insurance sector and road safety. Such data makes it possible to follow not only how often accidents occur over time, but also how the severity of their consequences — and the associated costs — evolve.

The rising compensation amounts may be linked to several factors, including increasing repair and spare-part costs as well as changes in vehicle values. LTAB's figures serve as an important reference point for insurance companies and other stakeholders assessing the state of road safety and the sustainability of the insurance system in Latvia.