How to take out a compulsory motor liability insurance policy in installments?

What is OSAGO insurance?

OSAGO, that is, compulsory motor third party liability insurance, guarantees compensation for damage caused by motorists to third parties. It is at the expense of the insurance company that the victim is compensated for the costs of restoring the car, as well as for treatment, but not more than the maximum amounts:

• 400 thousand rubles – for damage to property;
• 500 thousand rubles – for harm to life and health.

It should be borne in mind that this insurance does not cover the property of the person responsible for the accident, but it allows compensation for the expenses of the victim.

This type of insurance is regulated by the federal law of the same name, which stipulates all aspects of its use.

The MTPL policy is valid for one year, after which it must be purchased again. Lack of valid insurance or driving without a policy, according to the law, entails administrative liability in the amount of 500 or 800 rubles. In addition, without MTPL insurance, a motorist will not be able to register the car with the traffic police.

Payment Methods

Each insurance company has its own methods of paying for an insurance policy. The most common payment options are as follows:

1. The funds are deposited into the cash desk of the insurance company. If a car title is purchased in installments directly at the office, this option is the most preferable.
2. The money can be transferred to the insurance company's bank account. This method is most often used by legal entities, who also often prefer this type of insurance.
3. You can pay online using a bank card. If the MTPL insurance policy is issued via the Internet, this option is the most relevant.

If you purchase an MTPL insurance policy for the first time, you must pay its cost based on the season of use of the car. If the insurance contract is extended or the period of its use changes, then the additional cost of the insurance contract must be paid.

Cost of OSAGO policy

To calculate the insurance payment, a special formula is provided, which is established by the Central Bank of Russia:

T = TB x CT x KBM x KVS x KO x KM x KS x KN.

As you can see, the cost of the policy is influenced by many factors that should be understood. So, the first coefficient is TB, the basic tariff. It depends on the type of vehicle and who owns it. So, for cars owned by individuals, it is 2746-4942 rubles.

The second coefficient - CT - indicates the territory in which the vehicle will be operated. Depending on the region, its size ranges from 0.6 to 2.1. The bonus-malus coefficient (BMR) characterizes the driver’s experience and his lack of insurance claims. The digital value of the indicator is determined using a special table and ranges from 0.5 to 2.45. KVS means the age and experience of the driver. Its values ​​are set from 0.96 to 1.87. KO - depends on the number of persons allowed to operate the machine. The KM indicator is influenced by the technical parameters of the car engine. KS is the period of active operation of the vehicle. Well, the last indicator, which is equal to 1.5, is used only in exceptional cases - if the driver deliberately distorts or provides false information to the insurer.

Disadvantages and possible risks of installment plans for the policy

Flaws

The legislation regulating the insurance industry does not provide for installment payments for compulsory motor liability insurance policies. An analogue of the service is the registration of insurance within the framework of its limited use program.

In this case, the minimum period for which you will have to pay will be three months. This option was originally developed for people who do not plan to use their vehicle constantly.

The MTPL policy is a mandatory civil liability insurance document. All car owners should have it.

The following features allow you to receive an installment payment when choosing a seasonal program:

• The insurance contract is concluded for 1 year, within which the period of use of the vehicle can be extended;
• for the entire period of validity of the agreement, the cost of the service is established, which cannot change;
• Within the term of the contract, its initially established period can be extended if we are talking about the same car.

The scheme of operation of such an insurance program is simple. The owner of the vehicle enters into an agreement with the insurance company, under which he pays only for the first 3-9 months of using the policy. Depending on the size of this period, he will need to pay from 50% to 95% of the total cost of compulsory motor liability insurance.

When the paid period comes to an end, he will only have to make another payment or completely close his obligations. Thus, he will ultimately pay 100% of the policy value, making payments at the frequency that is convenient for him.

Registration of seasonal compulsory motor liability insurance is a legal vehicle insurance system, which is quite in demand in Russia. For this reason, it is offered by almost all insurance companies in the country. This guarantees consumers the opportunity to choose a suitable insurer both in Moscow and in the regions.

When thinking about concluding a compulsory motor liability insurance agreement with the possibility of receiving installments, it is recommended to pay attention to the following companies:

• "Reso-Garantia" - the company offers extensions to the basic agreement, which allows you to choose the best option. There are several ways to renew your policy. Online registration available;
• “Rosgosstrakh” - you can buy insurance via the Internet, choose a vehicle repair location, get advice by phone at any time of the day;
• “Consent” - it is possible to apply for DSAGO as part of the seasonal program. Here you can sign an agreement online, receive small payments even without certificates;
• "Ingosstrakh" - discounts are provided to regular customers, and there are a number of useful additional services.

As a rule, for 3 months the cost of the policy will be 50% of the total figure, in the fourth - 60%, in the fifth - 65% and then, respectively: 6 months - 70%, 7 - 80%, 8 months - 90%, 9 - 95 %, 10-12 months - 100%.

Today, you don’t even need to leave your home to purchase vehicle insurance. It is enough to find an insurance company that provides services for the sale of e-MTPL and perform a number of simple manipulations on its website. To conclude a transaction, you must prepare in advance the vehicle owner’s passport, PTS and STS for the car, a driver’s license and a diagnostic card or maintenance coupon. You will also need a bank card to use for payment for the service.

The use of the considered method of breaking the cost of the policy into several payments is advisable only as a last resort, if there are not enough funds to pay for the insurance in full at the time of its purchase. The main and only advantage of this is the ability to pay for the policy in several installments. However, this method also has some disadvantages:

1. If you do not have time to renew your insurance on time, you will have to overpay for its further renewal, since an increased coefficient will be applied in the calculation.
2. The monthly cost of a policy issued for several months is much higher than the same cost of insurance for a full year.
3. When you take out a policy for a year, its cost no longer changes during this period. During re-registration, the insurance company may apply new rates.
4. If you fail to renew your policy on time and continue to use the car, you run the risk of being fined.
5. During the year, the car owner will have to visit the insurance company several times and renew the contract.
6. If during the insurance period (that is, within a year) an insured event occurs with the vehicle during a period for which the insurance does not apply, the car owner will not receive compensation.

Provided the insurance renewal deadlines are met, the buyer risks practically nothing and gets the opportunity to legally and without overpayments split the cost of insurance into several payments.

All car owners should consider the following before taking out a compulsory car insurance policy:

• The legislation on compulsory motor liability insurance does not contain a direct right to issue a policy in installments, but such a possibility is not excluded.
• You can split the cost of insurance into several payments by manipulating the terms of use of the vehicle - to do this, you need to indicate in the contract the minimum period of operation of the car (it is three months).
• Such an installment plan, despite the ability to pay for insurance in installments, also has many disadvantages. The main one is the higher monthly cost of the policy.

It should be noted that in the current legislation regulating compulsory car insurance, there is no mention of the option of purchasing a policy with payment in installments.

According to the general rules, insurance is purchased:

• with a duration of one year;
• subject to full one-time payment.

Therefore, at first glance, installment plans as such, that is, paying for compulsory motor insurance in installments, are not available to the client.

Is it possible to pay for compulsory motor insurance in installments?

Many motorists are interested in the question of whether compulsory motor insurance can be paid in installments. It should be noted that current legislation provides for the issuance of an insurance contract for 1 year, subject to full one-time payment. That is, the law on compulsory motor liability insurance does not talk about any installment payments. However, insurers were still able to find a way out of the situation and provide motorists with the opportunity to conclude an insurance contract for 3 months with the possibility of extension. Moreover, during each extension of its validity period, the policyholder will make a payment based on the planned period of operation of the car. Thus, this payment scheme is essentially an installment plan, but with a different name.

To understand this, a motorist should distinguish between two concepts:

1. The validity period of the policy is unchanged and equal to one year, as required by law.
2. The period of operation of the vehicle is the period of time during which the driver plans to use the vehicle for his own purposes. This is where the opportunity to reduce your one-time insurance payment lies.

So, in Art. 16 of the federal law provides for the opportunity to pay for insurance of vehicles that are owned by the client and which he plans to use for a limited period (from 3 months per year), taking into account reducing factors.

In order to obtain such insurance, a citizen should notify the insurer about this when applying for a policy.

The cost of compulsory motor liability insurance in installments

The cost of a seasonal MTPL policy depends on the period for which the insurance is issued. When calculating payments, insurers use the following coefficients:

In other words, if the client plans to use his car for 4 months, the cost of insurance for him will be 60% of the original policy price.
This means that during this period the driver can safely drive his car and will not be fined for it. If a motorist needs to renew his insurance, he must contact the insurer before the policy period expires. If he does not have time to do this, he will have to pay an additional 90% of the cost of insurance instead of 40%. That is, if the driver manages to renew the insurance before it expires, he only needs to pay the difference between the original cost and the previous payment. If he doesn’t have time, the payment is calculated according to the table, as when initially contacting the insurer.

When is it needed?

The issue of obtaining insurance in installments is faced not only by those car owners who do not have the opportunity to pay the entire amount at once. There are other factors that influence the issuance of a policy in installments:

• in the event that the car is located in Russia for less than 3 months a year;
• if the owner plans to sell his car in the near future, so there is no point in insuring it for a year;
• if the owner uses the car only during the season (in summer, spring, or only in autumn or winter), the rest of the time it sits in the garage.

Where can you apply for compulsory motor liability insurance in installments?

An MTPL policy can be purchased from any insurance company. The amount of payment is calculated by insurers using the above formula, and the cost of insurance may differ depending on the size of the base tariff. Large insurers when calculating use the minimum indicator established for individuals who own cars in the range from 2746-4942 rubles.

In addition, insurers may provide various discounts or, on the contrary, include additional services in the cost of the policy that significantly increase its price.

We bring to your attention a table that shows the most popular insurance companies and the benefits that you can get when taking out a policy with them:

Underwater rocks

Of course, taking out an insurance contract in installments can be beneficial. But, there are many pitfalls of the installment insurance method. If you do not take them into account, you may not only not save money, but also significantly overpay for insurance for the year.

To avoid this, you need to avoid the following: many drivers who want to save money opt for the shortest possible insurance – 3 months. They pay half the price of the contract and are confident that they can pay the rest at any time to get an annual contract.

But in reality everything is not so simple. Not all motorists know that the possibility of such an extension of the insurance policy exists only when its validity period has not yet been fully used. And if the driver contacts the insurance company when the policy has expired, then he will have to pay for a new policy in full (read about what to do if your insurance has expired and whether you can use a car with an expired MTPL policy here).

ATTENTION! If you want to take out insurance in installments, then to renew it you need to contact the insurer in advance, then you will not have to overpay.

There is one more nuance: only the policyholder can make changes to the annual policy; it was he who paid for the insurance. But the owner of the car and the policyholder are not always the same person.

His wife can pay for the car insurance in installments that belongs to the husband. And then only she can make changes to the insurance contract. What if she cannot contact the insurer’s office, and the insurance must be urgently renewed?

Option 2: the husband buys new insurance or receives a notarized power of attorney from his wife that he can make changes to the contract on behalf of the policyholder. But both options will require additional financial expenses.

What is the procedure for obtaining compulsory motor liability insurance in installments?

To obtain a policy, a motorist should contact the insurance company with a complete package of documents. Typically it includes:

• passport of the vehicle owner and policyholder;
• registration certificate for the car;
• car registration certificate;
• driver license;
• diagnostic card (if the car is older than 3 years).

Based on the data received, the insurer calculates the cost of payment. In addition, an employee of the insurance company must inspect the car to find out its actual technical condition. For this reason, drivers should prepare their vehicle before visiting the insurance company. However, it should be noted that some insurers omit this procedure.

If the insurance conditions suit the client, he signs the contract and pays the payment.

How to apply for compulsory motor liability insurance in installments online

Most insurers today provide the opportunity to issue a policy via the Internet. The entire procedure is carried out remotely on the official website of the insurer.

As a rule, to obtain insurance, you first need to register in your personal account, then go to the page to calculate the cost of the policy. Here you should indicate in the appropriate fields:

• passport details of the policyholder and the owner of the car;
• the city in which the owner of the car lives;
• details of the technical passport and car registration certificate;
• driver's license details;
• diagnostic card number;
• technical data of the car.

In addition, the driver must scan all required documents and attach them in the appropriate places in the online application.

If the payment amount is suitable for the client, he pays it. The contract itself is sent to him by email.

It should be borne in mind that MTPL insurance on credit can only be renewed at the office of the insurance company. Therefore, it is better to draw up a contract with the insurer whose branches are in the city of residence of the policyholder.

List of insurance companies that provide the opportunity and their conditions

Currently, many insurance companies provide car owners with the opportunity to insure their car in installments. The concept of installment payments under compulsory motor liability insurance refers to insurance that is carried out in periodic payments. It is worth describing the largest companies, and also tell more about the conditions:

1. Rossgostrakh - assistance is provided by phone at any time of the day or night. They can help you with completing the Europrotocol over the phone.
2. Rego-Guarantee – it is possible to expand the insurance policy. There is a possibility of extending the insurance. You can purchase insurance online.
3. Ingosstrakh – discounts are provided for regular customers. There is an additional one. Several options for obtaining compensation for damage caused.
4. Zhaso – an insurance policy can only be purchased at the company’s office. Direct compensation for damages will apply. The number of insured events within one insurance contract is unlimited.
5. Renaissance Insurance – auto insurance can be obtained by phone or online. Car owners living in Moscow and the Moscow region can have their insurance policy delivered to their home by courier. The policyholder can choose the method of receiving insurance payment.
6. Alfa Insurance – regular customers are offered discounts when renewing their policies. It is possible to make direct payments.
7. Tinkoff Insurance - the insurance policy is delivered to the client at any time at the stated address. If several insurance products are purchased at once, discounts are provided. You can purchase and pay for insurance online.
8. Sogaz – there are promotions when purchasing a vehicle. The terms of insurance payments are minimal.
9. Uralsib - the maximum period for the occurrence of an insured event is 1 day. Insurance payment can be made only if there is information from the traffic police about the accident that has occurred.

Drawing up an agreement online using an example

In order to issue an insurance contract in installments via the Internet, you will need documents. Required list of papers to apply for a policy online:

• copy of the passport;
• copy of PTS;
• scan of the vehicle registration certificate;
• scan of the technical inspection card or diagnostic card;
• scanned driver's license;
• a bank card from which funds will be credited to pay for insurance in installments.

If you plan to purchase insurance in installments online, then it is strongly recommended to give preference to large and well-known organizations that have proven themselves in the market and have positive reviews. Such organizations include Ingosstrakh. So, step-by-step instructions for drawing up an insurance contract online at Ingosstrakh:

1. The first thing you need to do is go to the insurance company’s website.
2. An insurance product is selected (in this case, MTPL).
3. The system offers to calculate the cost of an insurance policy automatically. All information entered must be as accurate and truthful as possible.
4. The calculation is made within 1 minute.
5. If the car owner is satisfied with the amount of the insurance policy, then an application is sent to issue it.
6. There is a window on the website where the car owner indicates the time that is convenient for calling. At this time, the insurance company manager will call him or write an email to provide additional information. If necessary, an employee of the insurance company will help make a more accurate calculation of the price of the auto insurance.
7. Now you can pay for the insurance policy; to do this, you should choose any payment method that is convenient for the client. And the document arrives at the specified email address.

If you need to renew your car permit online, you need to:

• there is a form available on the website where you need to select “contract extension”;
• the data of the current insurance policy is entered;
• the calculation of the surcharge is obtained;
• the required amount is paid.

Calculation of the cost of compulsory motor liability insurance when applying in installments

It’s not difficult to calculate how much a motorist’s policy will cost – you just need to fill out all the fields in the online calculator on the insurer’s website, and then multiply the result by the appropriate coefficient. For example, if the full cost of insurance is 3,700 rubles, and the client wants the policy to be valid for 3 months of using the car, then his payment will be exactly half - 1,850 rubles.

If the motorist wants to renew the policy, it is necessary to contact the same insurer in advance and pay the remaining 1,850 rubles. After which the insurance will be valid for 1 year from the date of initial application.

CASCO calculator Rosgosstrakh

If we consider the literal meaning of the word installment plan, then OSAGO does not have such a service. But there is a pretty good offer called "period use" that allows you to split the annual payment into several parts.

The general rules for purchasing insurance are as follows:

1. Insurance is purchased for 12 months.
2. The purchase involves full payment of the entire amount at once.

Based on this, there is no installment plan according to the law. But there is a completely acceptable and legal method to circumvent the law and take advantage of the privileges of deferred payment, thanks to the car’s service life. The time allotted for operating the vehicle under the contract may be less than the duration of the insurance.

Using this method, the car owner can first pay for the shortest period of use of the car, and pay the rest of the insurance after the service life has completely expired.

The question is quite interesting. First, you need to figure out what percentage of the amount will need to be paid per month if the policy was issued from 3 to 9 months.

Example one

As it becomes clear, it is most profitable to take out a policy for several months, because as soon as the tenth month arrives, you will have to pay the cost of the policy in full.

Example two

Let's say a car owner has 80% of the cost of the policy available for 12 months. He will pay for 7 months of insurance and will continue to drive safely. But at the same time, he does not need to take out an additional policy for another five months. He can pay the remaining 20% ​​of the total insurance amount after 7 months. The reward will be an insurance policy for a year.

Naturally, the pitfalls are not written anywhere and no one will report it. The car owner does not suspect that even if he purchases the cheapest policy, he is obliged to pay the full amount not monthly, but based on the full cost of insurance.

Any insurance company can answer the following:

1. “If you are unhappy with something, then look for another one;

Whether to issue compulsory motor liability insurance in installments or not is a purely personal matter. In any case, the features of the services and offers of insurance companies must be carefully studied.

Today, the following insurance policies are in particular demand among car owners:

• CASCO or voluntary car insurance. This policy guarantees protection against the following insured events: road accident, car theft, theft, damage from fallen objects, damage as a result of a natural disaster, spontaneous combustion, etc. In this regard, the insurer can offer several interesting, relevant programs for cars, for example, “Pragmatist” (minimum insurance package), “Optimum”, “Premium”, etc. They all differ in the number of insured events.
• OSAGO or compulsory insurance. Every driver of a car is required by law to draw up an agreement of this type. It insures not so much the vehicle as motor third-party liability. By applying for such a service, you can rest assured that payments for insured events are always guaranteed and on time.
• DSAGO. This contract acts as a supplement to the mandatory one, improving its terms and increasing the insured amount to 3 million.

The auto citizen takes care of the life and health, cargo, and other property interests of participants in the traffic process. It is not the culprit of the traffic accident who will compensate the damage to the injured party, but the company from which he purchased the vehicle. Compensation for damage occurs either in cash or in the form of repair of the injured party’s vehicle at a service station.

On the one hand, it gives confidence to the culprit of a road accident that he will be able to pay for the property damage caused, on the other hand, it guarantees compensation for the damage to the victim.

Purchasing a policy offers disciplined drivers the opportunity to reduce the coefficient by 5% for each accident-free year of driving. And vice versa. The coefficient increases for the culprit of a traffic accident or its initiator, which ultimately increases the cost for the next year.

The maximum amount for property damage caused to the injured party is determined at 400 thousand rubles. If we are talking about the health or life of the driver or passengers, the payment increases to 500,000 for each victim.

Having made steps towards their clients, insurance agencies have reduced the period for consideration of applications for compensation to 20 working days, provided the opportunity to resolve controversial situations before the start of legal proceedings, reduced the maximum wear and tear of a car to 50%, and increased the limit of payments under the Europrotocol.

This expands the client’s opportunity to receive compensation in case of a minor traffic accident without contacting the traffic police.

A big advantage is the “direct settlement”, in which the victim applies to his insurance company, and not to the agency of the person at fault for the accident. This innovation is practiced in case of damage to two cars, without causing harm to the health and life of the motorist or his passengers.

We also invite you to find out how to calculate your KBM according to MTPL,

If we consider the literal meaning of the word installment plan, then OSAGO does not have such a service.

But there is a pretty good offer called "period use" that allows you to split the annual payment into several parts. Based on this, there is no installment plan according to the law.

But there is a completely acceptable and legal method to circumvent the law and take advantage of the privileges of deferred payment, thanks to the car’s service life.

The Law “On Compulsory Motor Liability Insurance” regulates all aspects related to the issuance of a policy, starting with the acquisition of a motor vehicle license and ending with methods for resolving disputes that arise between the parties during the validity of the insurance contract. The cost of compulsory motor liability insurance is also regulated by the legislation of the Russian Federation. For this purpose, basic tariff rates and a list of coefficients affecting the price have been developed.

Many car owners ask questions: is it possible to purchase a car title in installments?

Let's try to answer in detail.

Therefore, at first glance, installment plans as such, that is, paying for compulsory motor insurance in installments, are not available to the client.

But there is one completely legal option for circumventing this requirement, and it is related to the life of the car. After all, if insurance is always issued for a year, then the period of use of the vehicle specified in the policy agreement may be shorter. Due to this, the car owner has the right to actually use MTPL insurance on credit, having first paid for the minimum period of operation of the car, and paid the rest of the cost of the policy after the expiration of this period.

So here, if it so happens that at the moment you need to take out MTPL insurance in installments, you can use a little trick. How to get MTPL insurance in installments? In motor insurance, there are two concepts that reflect the validity period of compulsory insurance: Insurance period.

Nuances when purchasing compulsory motor third party liability insurance in installments

When purchasing a policy in installments, a motorist should consider the following points:

• to avoid overpayment, the policyholder needs to contact the company in advance, within the time limits established by the contract;
• only the person who executed it can extend the term of the contract;
• when applying for a renewal, an employee of the insurance company must inspect the car;
• the contract can be extended only three times - for example, twice for 3 months and once for six months.

Is it possible to get a policy this way?

It is possible, and there are 2 basic rules for taking out a policy in installments:

1. Such a car owner must be insured for at least a year . That is, not for a minimum period, but for a standard one.
2. How long does the driver use his car ? The main principle is that if OSAGO is purchased in installments, you must use your own car.

There are several other conditions that insurance companies impose on drivers:

• The insurance rate must be fixed for the entire duration of the insurance contract. The period indicated in the right corner of the insurance policy. During this time, the insurance price does not change.
• It is possible to extend the initial period of use. But only if the policyholder uses the same car that was insured by the same insurance company.

IMPORTANT! Payment of the annual cost of compulsory motor liability insurance can be carried out in different ways. Payment periods directly depend on the driver’s financial capabilities and priorities in using the vehicle.