Expert: OSAGO insurance policy will become more expensive for 15-20 percent of drivers

Latest amendments

The purchase of a compulsory motor liability insurance policy is controlled by law. All changes to the insurance system are also being introduced officially. The last time innovations occurred was in September.

Damage is compensated in the event of a collision of several vehicles at once. The right to receive compensation applies to all owners of an online compulsory motor liability insurance policy, regardless of the date the insurance transaction was concluded. The European protocol, which is drawn up in the absence of traffic police officers, also continues to operate. Resorting to this method of recording damage is permitted only in specific cases.

If the OSAGO policy was issued later than April 28, 2021, it is subject to natural compensation in the form of repair work.

New KBM

According to official data, the innovations will also affect the CBM, which is used to calculate the cost of the insurance document. A driver who has never caused an accident receives a discount. A person who has repeatedly been involved in accidents pays for insurance at a higher rate.

Now the final price of the MTPL policy will be determined by the severity of the accident, as well as the total number of accidents that occurred. At the same time, the cost of the insurance service will also be influenced by the usual factors: age, gender, driving experience of the policyholder, the region of registration of his vehicle (in the capital, the insurance service costs several times more), engine power, the number of drivers with access to the vehicle, the duration of the contract , duration of operation of the car, driver class, etc.

Using a personal KBM

Each MTPL owner has his own KBM, which includes the concept of driver class. The changes will affect him. It is known that 1st class will be assigned under one of the following conditions:

Apply for MTPL on the official Ingosstrakh website in a few clicks BUY

the car is equipped with a trailer;
the vehicle was registered outside the Russian Federation;
the car has not yet been registered.

Please note that the driver's class is calculated based on the compensation that was paid as a result of the accidents that occurred.

The specific type of car does not matter. The driver's class is also not affected by information on:

short-term contracts;
invalid contracts;
contracts that include a large number of drivers.

If several people were indicated in the previous policy, their KBM are not taken into account. The new calculation is made based on the vehicle owner’s data.

If the policy holder has driven a vehicle for less than a year, the BMR for him is calculated based on certain factors:

presence or absence of emergency situations;
the number of insurance payments made by the insurer as a result of road accidents.

If a citizen has already taken out a policy before, his new class fully corresponds to what was stated in the last document. If he purchases insurance for the first time, he is awarded class 3. When new drivers are added to the insurance policy, a new calculation is made.

This is true?

Yes. Although, as of May 30, 2021, there are no specific official data and figures, the source of information is directly the legislative structure - the Central Bank.

Therefore, there is no doubt that MTPL prices will change. And most experts have doubts that insurance will become more expensive with these changes.

Increase in price of OSAGO insurance policy in 2021

Information that the price of the MTPL policy will change in 2021 has been confirmed. The cost of compulsory insurance services will increase as follows:

by 55% for persons from 22 to 24 years old with a driving experience of 5 to 6 years;
by 31% for persons aged 25 to 29 years with 5 to 6 years of experience;
by 22% for persons of the same age whose experience does not exceed 9 years.

Drivers over 49 years of age who drive vehicles 14 years and older can count on a discount of up to 34%.

Please note that the price of the policy will vary depending on the tariffs established in each region separately. The driver's accuracy and driving experience (presence or absence of accidents in the past) will continue to play a key role in determining the cost. For example, if a driver with extensive driving experience decides to add an inexperienced person who has previously been involved in an accident to his insurance policy, the discount will not apply. This is all due to the fact that tariffs apply to specific individuals, not cars.

Will there be an increase in the price of compulsory motor insurance in 2021?

The Central Bank gave an unequivocal answer to this question in May 2021: there will be an increase in tariffs. However, this is not just an increase in the base tariff. What's new for car owners today?

Other increases in the cost of MTPL policies in 2021

Fresh changes, expected in January 2021, will affect legal entities and organizations such as vehicle fleets. For them, the average coefficient will be used, which is why the cost of the policy will increase. The more cars are insured, the higher the likelihood of an insured event occurring. This will play a role in determining the cost of compulsory motor liability insurance.

The coefficient will also be increased for irresponsible drivers: starting from 1.86 for 5-9 violations and ending with a triple increase for more than 35 violations.

How much does OSAGO cost in 2018?

So, first we will explain how the calculation of the insurance premium (the one that is paid when purchasing a policy) works in accordance with the rules of OSAGO.

There is a base rate in the form of a price range that the insurance companies themselves have the right to set (but more often maximum values are set),
And there are coefficients that depend on the data of the drivers allowed to drive and the parameters of the car and which are applied in turn to the base tariff by multiplying the latter by these coefficients.

The increase in the cost of compulsory motor liability insurance this time is due to an increase in the base tariff (in fact, the corridor is simply increasing), as well as several coefficients applied to the base tariff.

The final price of the policy is calculated using the following formulas:

for passenger cars of individuals : basic tariff x territorial coefficient (region of registration of the owner) x bonus-malus coefficient (accident-free driving) x limited/unlimited insurance x vehicle power x seasonality of use x number of violations in the previous insurance period;
for passenger cars of legal entities : basic tariff x territorial coefficient (region of registration of the owner) x bonus-malus coefficient (accident-free driving) x age/experience of approved drivers x limited/unlimited insurance x vehicle power x seasonality of use x number of violations in the previous insurance period x availability of a trailer;
for motorcycles and trucks of individuals : basic tariff x territorial coefficient (region of registration of the owner) x bonus-malus coefficient (accident-free driving) x age/experience of approved drivers x limited/unlimited insurance x seasonality of use x number of violations in the previous insurance period x availability trailer;
for motorcycles and trucks of individuals : basic tariff x territorial coefficient (region of registration of the owner) x bonus-malus coefficient (accident-free driving) x limited/unlimited insurance x seasonality of use x number of violations in the previous insurance period x availability of a trailer.

A small addition has appeared in the MTPL calculation forums - this is the coefficient of the number of violations. Previously, it was not applied, but at the new rates it will be applied and will always be equal to 1.5 if there were violations of the insurance rules in the previous period:

if the driver knowingly provided false information when applying for insurance, which affected the reduction in the cost of the policy,
if the driver deliberately staged an accident or lied about damage information,
if the driver has been presented with a recourse claim.

So, now let's move directly to the numbers, and in the “was/has become” format we will present all the changes in insurance rates and coefficients!

What you need for MTPL insurance in 2021

The package of documents required to conclude an insurance contract for individuals and individual entrepreneurs in 2021 will look like this:

an application written according to the rules of the insurance company on its letterhead;
technical inspection certificate (you will need to pay attention to its validity period);
registration document (if the car has already been registered);
vehicle technical passport (for unregistered vehicles);
driver license;
passport.

Legal entities provide insurance companies with the following documentation:

statement;
diagnostic card;
vehicle passport or registration certificate;
power of attorney for the employee who concludes the insurance transaction;
certificate of registration of a legal entity;
seal of a legal entity.

Having issued a policy, any insurer provides its client with:

original insurance document;
list of insurance rules;
a reminder for the driver;
a receipt for the payment for the service.

After all documents are handed over to the client, the compulsory motor liability insurance policy begins to officially take effect.

OSAGO in 2021: latest news

In 2021, compulsory motor third party liability insurance (MTPL) may become significantly more expensive. Last year, at a joint meeting with the participation of the Ministry of Finance, the Central Bank of the Russian Federation and representatives of the insurance business, it was not possible to develop specific decisions in this area, however, there was talk about the gradual liberalization of the MTPL tariff schedule. If the proposals of insurance companies are approved, then a rise in the price of compulsory motor liability insurance seems to be an inevitable event.

Insurers, at every opportunity, point out that compulsory motor liability insurance is now unprofitable for most insurance companies, and this can only be corrected by abandoning fixed tariffs.

Participants in the insurance services market believe that price formation will be regulated by the market itself, and competition will prevent prices from rising at an unimaginable pace. It will force competitors to work better in order to retain customers.

The Central Bank is now not ready to immediately comply with the conditions of the Russian Union of Auto Insurers, but in general they represent their aspirations and are ready to make certain concessions, but in a phased manner, gently moving to another scheme. Thus, the first price increase is possible this year. It should be noted that Russian laws now allow increasing MTPL tariffs no more than once a year.

Fine for not having a compulsory motor liability insurance policy in 2021

A driver who does not have an insurance policy is required to pay a fine. This year, drivers will be fined 800 rubles for not having compulsory motor insurance. In this case, the amount of the sanction can be increased to 8,000 rubles (for a serious offense). If the policy holder simply forgot the insurance document at home, he pays 500 rubles. The same thing happens when presenting an expired policy. A fine of up to 5,000 rubles is possible (depending on the nature of the violation). The alternative to either of these options is a warning. All these norms are introduced in order to accustom drivers to discipline and reduce the number of unpaid compensations.

If a person pays the fine within 20 days from the date of its imposition, he receives a 50% discount. The issue of repealing this rule has not yet been decided for sure. It is assumed that all fines will remain the same. Most likely, drivers will also be able to take advantage of the discount. This is done to encourage drivers.

Will OSAGO become more expensive in 2021?

The parties involved in the discussion of compulsory insurance tariffs did not agree on a specific solution, but ordinary drivers should prepare for not the most pleasant outcome. The likelihood that compulsory motor liability insurance will rise in price in 2021 is extremely high.

Insurance companies are still talking about their unprofitable activities in the field of motor insurance. Many of them turn to the Central Bank, which regulates the MTPL market, for permission to independently set insurance rates. Insurers claim that such a decision will provide undoubted advantages: they will begin to value each applicant, improve the quality of their services, and also stop receiving losses. The Central Bank has not yet decided how much the cost of compulsory motor insurance will rise. At the same time, he is ready to make big concessions for the sake of insurance companies.

The deputy chairman of the Central Bank said that the transition from fixed tariffs to free prices will take place gradually. He also added that policies will remain affordable for most car owners. According to the deputy chairman, the Central Bank has the right to change tariffs once a year. Now he wants to approach the new calculations comprehensively, proposing changes to both basic and regional tariffs. According to the deputy chairman, the MTPL policy will become more expensive in the first half of the coming year.

Recent changes regarding electronic policies

An MTPL policy purchased online on the insurer's website has full legal force. This rule came into effect in January 2021.

The electronic policy is legally equal to the paper version. In 2018, the registration process will remain the same. To obtain an insurance document, you will need:

select an insurance company and go to its website;
go through the registration process;
submit an application for a policy;
check whether all data was entered correctly;
wait until the information is verified (an SMS will be sent);
log in to the site;
select the required service (issuing a new policy or renewing an old MTPL);
receiving the document by email (the policy will need to be printed and taken with you when driving the car).

This option for issuing an MTPL policy, which gained popularity in 2017, has its drawbacks:

it is almost impossible to verify its authenticity (you can do this visually or view data about the policy in the RSA database a few days after its purchase);
many owners of electronic policies forget to print their documents, which is why they are punished with penalties;
in case of an accident, its participants cannot exchange data about their insurance policies (in case one of them forgot to print the document).

Repair and insurance payments: fresh changes and surprises in 2018

Previously, policyholders relied on extremely limited compensation when insurance claims occurred. The payment limit was 160,000 rubles. In 2021 the situation will change. As the price of the MTPL policy increases, the compensation limit will also increase. It is officially known that the maximum amount that policyholders can count on will reach 1.5 million rubles. However, it is important to remember that this will only affect particularly severe injuries, as well as fatal accidents. On average, policy owners can count on an insured amount of 400,000 rubles. In this case, the owner of the policy will decide for himself what to choose: receive money or complete repair of the vehicle.

The rules regarding payments in 2021 will become stricter:

the insurance company will be obliged to cover all damage within 20 days from the date of receipt of all necessary documents from the policyholder;
if the obligation is not fulfilled on time, the amount of insurance compensation will increase by 0.5%;
If the client of the insurance company does not provide the necessary documentation within the appointed time, he will face a penalty in the amount of 1% of the amount of insurance compensation.

The updated legislation also includes important changes regarding car repairs. In this regard, policyholders receive prominent benefits:

the condition of the vehicle will be assessed in a single objective way, on the basis of which insurance compensation will be calculated;
during repairs, cars will be equipped exclusively with new spare parts;
the deadline for repair work will be 30 days;
cars will be restored at stations that cooperate with insurance companies, or pre-agreed with them.

How much more expensive will a compulsory motor liability insurance policy become in 2021?

It should be noted that the proposal to change the coefficients for calculating the cost of the MTPL policy was made for the first time in the spring of 2017. Then, for example, they proposed to significantly increase the price of insurance for citizens with little driving experience. Let's say, for drivers under 24 years of age with no more than 5-6 years of driving experience, the price increase for policies could be 55%. It was proposed to increase the price of the policy for persons from 29 to 31 years old by 31%. It was planned to increase the price of a compulsory motor liability insurance policy by 1.7 times without restrictions on the number of registered drivers. If today the increasing factor is 1.7, then in the updated version it would be 2.8.

The new system provides benefits exclusively for adult experienced motorists (14 years of experience or more). It was proposed to reduce the price of insurance for them by a third.

One way or another, a final decision on tariffs has not been made, which some associated precisely with the approaching transition to a new system and the liberalization of the approach to tariffs.

Now insurance companies are complaining that in some regions the rise in the price of compulsory motor insurance is a necessity. For example, in the Volgograd region the minimum insurance price is 5,353 rubles. Insurers believe that to cover losses in this subject it is necessary to set a minimum cost of 34,797 rubles.

The Central Bank of the Russian Federation notes the need for consistent liberalization. The first step towards it is to increase the size of the price corridor. Moreover, it is clear that none of the companies will lower the price, but almost all will raise it. Practice clearly demonstrates: the transition to natural compensation for damage has led to the fact that all insurance companies began to charge the maximum possible amount of insurance premiums.

Be that as it may, the cost of compulsory motor liability insurance in 2021 will become much higher, and after another 1-2 years it may reach figures comparable to CASCO.

Changes to the inspection procedure in 2021

There are no fundamental changes in technical inspection issues. The cost of such a service (today a technical inspection costs from 800 to 1,500 rubles) will increase. The legislation provides for the installation of cameras to monitor the quality of technical inspections.

There are no changes regarding technical inspection for pensioners. This is due to the fact that older people in Russia rarely drive. If a pensioner does not have enough funds to conduct a technical inspection, such a service will be provided to him free of charge. Official dealers are still responsible for its implementation.

What to do in case of an accident in 2021

The algorithm of actions in case of an accident is standard:

if there are victims, you must immediately call an ambulance;
call the traffic police;
notify the insurance company about the accident and follow its instructions.

The situation can be resolved without the involvement of authorized bodies. To do this, at least one of the following conditions must be met:

no one was injured as a result of the accident;
both sides agree on who exactly is responsible for what happened;
both parties do not want to document the accident.

At the same time, they can draw up a European protocol. This is done in the following cases:

no more than 2 parties were involved in the accident;
each of the participants in the accident has an insurance document;
there is no disagreement between them;
no one was killed, and no one else's property was damaged.

There are several rules for filling out such a protocol:

a ballpoint pen is used;
All necessary information about the participants is entered into the document;
the front part is filled out by each of the parties, after which it is certified with signatures (2 from each);
the reverse side does not remain blank;
if changes are subsequently made to the document, they are confirmed by signatures;
completed copies are separated.

The document, drawn up in accordance with all the rules, is submitted to the insurer within 5 days after the accident occurred. It must be accompanied by all required documents, the list of which is determined by the insurance company itself.