What changed on August 4, 2026
Moroccan insurers have applied an increase of around 5% to motor liability premiums since August 4, 2026. It only concerns the compulsory RC guarantee — covering damage caused to third parties — not optional covers (theft, fire, glass breakage, all-risk damage). The increase stems from the reform of road accident victim compensation introduced by law no. 70-24, promulgated by dahir on January 22, 2026 and published in Official Bulletin no. 7478 of January 29, 2026.
Are you affected? It depends on your renewal date
Key point: the new pricing applies to new contracts and to contracts reaching their expiry date and being renewed. Contracts still in force are not affected until they expire. In other words, if you renewed in July 2026, you will only see the increase at your next annual renewal in July 2027. First-time policyholders and drivers switching insurers get the new pricing immediately.
What it costs in practice: examples by profile
- Young driver aged 22-30, used car under 50,000 MAD, third-party cover (1,500-2,200 MAD/year): roughly +75 to +110 MAD/year — third-party premiums are essentially RC, so the increase passes through almost fully.
- Urban professional aged 30-45, recent car worth 100-250k MAD, extended third-party (3,200-4,800 MAD/year): at most +160 to +240 MAD/year — less in practice, since only the RC share of the premium rises.
- Family aged 40-55, SUV worth 250-500k MAD, comprehensive cover (5,800-9,500 MAD/year): at most +290 to +475 MAD/year, with the same dilution effect as RC is only a fraction of a comprehensive premium.
Why premiums are rising: law 70-24 and the new compensation scale
Law 70-24 modernises the 1984 dahir that had governed road accident victim compensation for over forty years. The reference salary used to calculate indemnities, frozen at 9,270 dirhams since 1984, rises to 14,270 dirhams — an increase of nearly 54%, phased in progressively with mandatory periodic review — while the income ceiling taken into account climbs from 640,000 to 1 million dirhams. The Justice Minister told Parliament that some indemnities could rise by up to 150%. The trade-off is clear: accident victims and their families will be significantly better compensated, and that additional cost is passed on to premiums.
The April episode: the Competition Council's block
The increase was initially due on April 1, 2026. Announced simultaneously and uniformly by insurers, it was suspended after the Competition Council intervened: in a market where RC pricing has been liberalised since 2006 — each insurer is supposed to set its own rates based on its own claims experience — a coordinated increase could raise cartel concerns. The Council met with insurers, and the increase finally took effect in early August, with each company free to set its own grid — which makes comparing offers all the more worthwhile.
A trajectory through 2030: around +5% per year
August 2026 is only the first step. Impact assessments of the new compensation scale point to an annual increase of around 5% over 2026-2030, a cumulative rise of roughly 20 to 25% in RC premiums according to industry estimates. Concretely, an RC premium of 2,000 MAD today could approach 2,500 MAD by 2030 if the trajectory is confirmed.
How to limit the impact
- Compare before every renewal: with free pricing, the gap between insurers for the same profile can exceed 20%, and reach 25-45% on some profiles — easily absorbing the 5% increase.
- Renegotiate at renewal instead of rolling over: loyalty is rarely rewarded, and a 4-5 year customer often pays 12-18% more than an equivalent new client.
- Protect your no-claims bonus and avoid declaring very small claims that cost more in surcharges than in repairs.
- Match cover to your car's real value: over 7 years old or under 40,000 MAD, well-chosen third-party cover is often enough — saving up to 1,800-3,000 MAD/year versus an unnecessary comprehensive policy.
- Pay annually: monthly instalments typically cost 8-12% more.
FAQ
Why is car insurance going up in Morocco in 2026?
Because law 70-24 substantially raises compensation for road accident victims: the scale's reference salary jumps from 9,270 to 14,270 dirhams (+54%). Insurers' RC payouts will mechanically increase, and that cost is passed on to premiums — around 5% in 2026, with similar annual steps expected through 2030.
Does the 5% increase apply to my current contract?
No. It only applies to contracts taken out since August 4, 2026 and to contracts renewed at expiry. Until your current contract expires, your premium is unchanged — and your renewal date is the right moment to compare offers.
Article based on official public data + wafir.ma expert sources. All cited statistics are verifiable with the mentioned organizations.
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