What is unlimited insurance?
In cases where the car is used by several drivers, OSAGO provides insurance in two options: you can include several people in the policy or purchase unlimited insurance , which allows an unlimited number of people to drive the car.
If you have taken out unlimited insurance, in paragraph 3 of the policy there will be a checkmark in the column “The agreement is concluded in relation to an unlimited number of persons”, and in the columns “Persons allowed to drive a vehicle” and “Driver’s license” there should be dashes , no one will go there even the owner of the car is included.
Do you need a power of attorney for an open policy?
Due to changes made to the traffic rules in 2012, a power of attorney is excluded from the mandatory documents that must be carried with you. This rule also applies to unlimited insurance without any reservations. To drive someone else's car, it is enough to have with you:
- Open policy.
- Driver's license.
- Vehicle registration certificate.
Driving your car under an agreement without restrictions can be entrusted to any person who has the rights of the appropriate category without issuing a power of attorney.
Cost of unlimited insurance
Basic rates and coefficients of compulsory motor liability insurance are regulated by regulations of the Russian government, so the cost of insurance does not depend on the insurance company, region and other conditions.
Do you know what the fine is for driving without MTPL insurance?
Find HERE information on insurance compensation payments under MTPL.
The cost of unlimited insurance is affected by a coefficient “depending on the availability of information on the number of persons allowed to drive the vehicle,” as the law defines it. It is equal to 1.8 - thus, the price of the policy will increase by 80%.
The coefficient, determined by age and driving experience, in this case will be equal to 1, i.e. it will not affect the cost in any way .
Do you need a power of attorney if compulsory motor liability insurance is without restrictions?
In accordance with changes to the traffic rules, a power of attorney is not included in the list of mandatory documents to be presented to the traffic police inspector.
Based on this, you can find the answer to the question of whether a power of attorney is needed if the insurance is without restrictions.
Since this rule also applies to drivers who have open MTPL insurance.
This means that when the insurance indicates that the number of persons allowed to drive the car is not limited, then a power of attorney is not required when transferring the car to other people.
When is unlimited insurance beneficial?
Unlimited insurance can be convenient in a situation where, due to the age and driving experience (up to 22 years and up to 3 years of experience) of one of the drivers who will be included in the policy, the calculation is already carried out with a maximum coefficient of 1.8 - in this case, by paying the same money , you will have the opportunity, if necessary, to transfer the car to a person not specified in the policy.
If this driver, among other things, does not have a very high class coefficient, then unlimited insurance will most likely be cheaper than limited insurance.
Advantages and disadvantages of unlimited insurance
Perhaps the only drawback of unlimited insurance is its high cost . But, as mentioned above, in some cases it can even be beneficial.
There are other advantages:
- you will not need to be afraid of getting caught by a traffic police inspector if for some reason neither you nor the drivers listed in the OSAGO can get behind the wheel and someone else has to drive the car, including the ability to safely use it;
- Such insurance is very convenient for companies - there is no need to think about which driver will drive which car, and is absolutely indispensable for courier services, taxi companies and other organizations whose activities are directly related to the use of vehicles;
- You don’t have to be afraid that the inspector will find fault with an error in the drivers’ data - it is simply excluded.
How to turn limited insurance into unlimited?
You can change the type of insurance at the request of the car owner from the insurance company where the policy was originally issued. To do this, you can contact the company itself or directly the insurance agent representing it.
In the application you must indicate what changes you want to make to the policy; many insurance companies have ready-made forms; in them you only need to highlight the required point.
The application is written by the policyholder or another person to whom he entrusts this process, but in this case a notarized power of attorney from the policyholder to this person is required.
After the data has been changed, the insurance company takes away the old policy and issues you a new one . Column 8 “Special notes” must indicate the number of the original policy , as well as the reason why you reissued it.
Sometimes insurance representatives offer to simply cross out incorrect data and enter new ones - refuse such an offer and demand the correct re-registration . Otherwise, when an insured event occurs, difficulties may arise, or even payment will be denied.
Corrections are only allowed in the following cases:
- if there are typos or minor inaccuracies - in this case, what is written incorrectly can actually be crossed out, and the correct data is entered next to it, they are certified with the phrase “corrected believe”, the signature of a representative of the insurance company and a seal, and a date is affixed;
- if the vehicle passport or license plates are replaced, new data can be indicated on the back of the policy or in the “Special Notes” column, certified by the insurer’s seal.
If you change your insurance to unlimited, in most cases an additional payment will be required. It will be calculated until the end of the policy period.
After receiving a new policy, check carefully to ensure that the necessary changes have been made correctly and that the old data remains unchanged.
Is KBM taken into account when insuring without restrictions?
KBM, or bonus-malus coefficient , used to calculate the cost of compulsory motor liability insurance, is essentially a discount provided by the insurer for accident-free driving.
The KBM will be taken into account for any insurance option; moreover, the legislation allows for the recalculation of the KBM when switching to insurance without restrictions on the number of drivers.
When insuring with a limited number of drivers, the BMI of the driver for whom it has the greatest value is applied. With unlimited insurance, the car owner’s BMI is taken into account - thus, the cost of insurance in this part recalculated
Read more about KBM and how to calculate it according to MTPL.
Read about the cost of a green card for a car HERE.
You can familiarize yourself with the new edition of the Law on OASGO in this article: //auto/osago/poslednejj-redakciya.html
To summarize, the following can be said about unlimited insurance:
- it is convenient for families in which several people drive the car;
- it is indispensable for companies that actively use vehicles;
- in most cases more expensive than limited insurance;
- convenient in emergency cases when a driver who is not included in the policy has to get behind the wheel;
- If desired, the type of insurance can be changed without waiting for the expiration of the policy.
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Unlimited insurance cost: how to calculate
Insurance involves a number of coefficients that affect the cost of insurance. When calculating using the online calculator provided by Rosgosstrakh, you will not be able to calculate everything absolutely accurately. There are nuances that need to be clarified with insurance organizations in your region.
How to calculate the price of insurance using the RSA website. Photo: byd-spokoen.ru
What documents must be submitted to calculate the cost of insurance without limitation:
- Passport. For legal entities, in addition to the passport, a power of attorney for the company representative and documents on registration of the organization.
- PTS.
- For new cars - a deed of purchase and sale. For old people – a document issued by an appraiser.
How to properly draw up a purchase and sale agreement? What points need to be taken into account? Tips and design details are here.
After choosing the program that is most suitable (there are currently 4 preferential programs and 1 full), you will make a list of options for your consideration. The manager will calculate the cost of insurance for you.
If you decide that the amount does not meet your expectations, the specialist will help you reduce, change or remove some of the options.
The manager will ask you who you want to trust to drive the car. At this point, you can completely abandon the power of attorney, then the cost of insurance will be much lower. But, except you, no one will have the right to drive your vehicle.
In this case, every time a stranger gets behind the wheel of your car, you will have to write him a power of attorney by hand on a simple sheet of paper or on a special form.
You can name several people whom you want to trust to drive your car. Then the cost of the insurance certificate will increase in proportion to the coefficients for each of the specified persons.
If you choose insurance without restrictions, the cost will automatically increase, but you won’t have to think about who is allowed and who is not allowed to drive your vehicle.
After drawing up the document, you must carefully check all the data included in the insurance policy and sign the document.
The insurance premium can now be paid in cash or by credit card. The receipt will be attached to the policy.
Calculate the cost of insurance online. Photo: strahovoiurist.ru
Calculation in CASCO is made according to the formula:
Amount of the CASCO tariff = Basic Tariff x (year of manufacture of the car / wear and tear) x (age of the owners (franchise) x (installment plan)
Tariff for theft x (year of manufacture of the car/its wear and tear x (anti-theft devices) x (installment plan)
Next, both indicators are summed up.
OSAGO uses a standard formula corresponding to the methodology for calculating insurance certificates.
The amount of the OSAGO tariff = basic tariff x territorial coefficient x coefficient, which depends on the number of drivers who are allowed to drive vehicles x coefficient determined by age and experience x motor power coefficient x insurance class.
You can use an online calculator, but your calculations will be approximate. This method is suitable in the process of choosing an insurance company. But you will not have information on preferential terms and hot offers.
In 2021, due to some amendments to the Legislation of the Russian Federation regarding insurance companies, the latter increased the cost of insurance.
In addition, each insurance company applies its own coefficients. To correctly calculate the cost of insurance, you must contact the insurance company in person with a package of documents identifying the owner, ownership of the vehicle, all documents for the car and old insurance policies (if any).
The last point is necessary for preferential calculation. If the driver was not guilty of an accident in the last 2 years, the cost of the contribution is reduced.
