In the near future, a new increase in tariffs for compulsory civil liability insurance is expected, i.e. the cost of a compulsory motor liability insurance policy will increase. It has already become a tradition to increase the price of MTPL tariffs. There is even a periodic pattern of this phenomenon. As for the last price increase, it dates back to April 2015. It was then that the cost of the policy increased by as much as 40%.
Despite the fact that from September 1, 2021, the increase in the price of compulsory motor liability insurance will not become so significant, but on average its cost will increase by 20%. The change in the total cost of the MTPL policy was influenced by the decision of the Central Bank to change a number of coefficients and the insurance tariff. So far there is no direct talk about any increase in price. On the contrary, rumors are spreading about some reduction in prices for insurance organizations. But if we proceed from the indicators of basic tariffs before and after the changes, they will increase significantly.
Look at the official document of the Central Bank on the new MTPL reform for 2021.
In general, it is planned to liberalize compulsory motor liability insurance within several years, and this initiative is only confirmation of this. The authorities have long been faced with the issue of transferring all powers related to the pole into the hands of insurance companies, which will set the rules themselves. They will also determine its cost. There is no need to talk about whether this is good or bad due to the fact that this issue is controversial.
The vast majority will face an increase in the price of insurance, although for some people it may become slightly cheaper. They will not cut corners and will carry out all changes in stages from 2021 to 2021. What is planned to be done and in what period of time - read on.
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.
What will happen next?
The last time the base rate was increased was in April 2015. Then OSAGO noticeably increased in price. This led to many car owners simply refusing to take out insurance, considering it more reasonable to pay a fine of 800 rubles for lack of insurance. And someone simply purchased a fake policy for a price several times lower than the real one.
According to RSA statistics, more than 3 million of all drivers do not have insurance, and in the past year alone, the number of fines for lack of insurance, according to traffic police statistics, increased by 40%.
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.
Does this mean that the cost of MTPL will increase in 2021?
In accordance with the changes, increases and some discounts are provided for prices and base rates; they will affect the following groups of policyholders:
- Drivers aged 22-24 years, with up to 6 years of driving experience in the amount of 50%;
- Drivers aged 25-29 years with driving experience up to 6 years in the amount of 31%, up to 9 years - 22%;
- Drivers aged 49 and over, driving a car for 14 years, decreased by - 34%.
It is important to note that the MTPL policy and rates are not tied to the owner, but to a specific vehicle. Therefore, if a careful motorist with extensive experience decides to transfer insurance to a colleague who has a history of accidents, then he loses his discount.
Starting from January 2021, the average value of the coefficient for vehicle fleets of organizations will increase, which will affect the total cost of compulsory motor liability insurance for legal entities upward. This decision was made based on the assumption that the more vehicles the owner has, the higher the risk of accidents.
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:
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- 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 23, 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.
How much does the policy cost now?
When concluding a contract, quite a few indicators are taken into account. It is based on the so-called basic tariff. Now it has a fork from RUB 3,431. up to 4119 rub. The specific value you choose depends on whether you are insuring a car or a truck, and whether the vehicle is owned by an individual or an organization.
Next, the selected amount is multiplied by a number of coefficients. The following are taken into account:
- the region in which the contract is concluded;
- car engine power;
- driver age;
- driving experience;
- the presence or absence of an accident involving the insured in previous periods.
You can get an approximate idea of how much you will have to pay for a policy in each specific case by using the calculator on the insurance company’s website. However, only the agent will give the exact figure when concluding the contract.
The Central Bank answers why tariff increases are expected: this is due, among other things, to complaints from drivers about non-transparent conditions and incorrect use of coefficients by insurers, especially KBM.
So far the situation is as follows: the average cost of a car license is 5,800 rubles. A novice driver or an experienced one, but the culprit of several accidents in the past, will pay more than a car owner with solid experience who thoroughly follows traffic rules. The place where the contract is concluded also matters. So, in Moscow the average cost of insurance is about 7,000 rubles, and in the Moscow region it is already 5,400.
A policy that includes several drivers at once is more expensive. Open insurance, that is, without specifying specific persons who have the right to drive a given vehicle, is also calculated using an increased coefficient.
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.
KBM
The bonus-malus coefficient also remains unchanged, and an increase in compulsory motor liability insurance in this part is not expected until at least the end of 2019, but from January 1, 2021, only the “cosmetic part” changes - the name of the accident-free driving class will not be used, but simply indicated coefficient.
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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.
Insurance policy cost from September 1, 2021
At the beginning of 2021, the Central Bank announced its intentions in September of the same year to expand the tariff corridor, as well as change 2 coefficients - KBM and the age and length of service of the driver. In fact, the cost of compulsory motor liability insurance in September 2021 did not change, since the corresponding amendments to the law were not made, and the bill was not even considered in the State Duma and the Federation Council. Igor Yurgens, president of RSA, explained that the upcoming changes do not indicate a clear increase in the price of policies - this will only happen for 20% of drivers who behave carelessly on the road. For the remaining 80%, insurance policy rates can be reduced. The table below shows the price changes that the MTPL reform may entail.
Table - Cost of OSAGO policy before and after reform
| Cost Components | Before the reform | After the reform |
| Basic tariff | 3432 – 4118 rubles | 2746 – 4942 rubles |
| Bonus-malus coefficient | 0.5-2.45 (several coefficients may be applied depending on the number of policies in which the driver is included) | 1 coefficient will be applied for each driver |
| Territorial coefficient | 0,5-2 | May be canceled |
| Coefficient of driver age and driving experience | 1-1,8 | 0,96-1,87 |
| Contract time | 1 year | From 1 day to 3 years |
| Power factor | 0,6-1,6 | May be canceled |
Source: bill No. 472049-7, draft of the Central Bank
Bill No. 472049-7, introduced by deputies Y. Nilov and I. Lebedev, provides for permission to conclude MTPL insurance contracts for a period of up to 1 day. The Russian government did not support this initiative for a number of reasons, including due to unjustified expenses of insurers. Deputy Chairman of the Central Bank V. Chistyukhin suggested that such a rule could be introduced and does not believe that it could violate anyone’s rights.
Changes by the Central Bank as part of reforming the age and length of service coefficients, as well as expanding the tariff corridor, according to Chistyukhin, will not affect the average cost of the policy. He said that the Central Bank bill could be considered in the spring session, that is, no changes should be expected until 2019. The abolition of the territorial coefficient, which significantly affects the calculation of the cost of insurance now, will occur no earlier than 2021-2022. Thus, MTPL tariffs will most likely not change in 2021.
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.
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 will the cost of insurance increase?
To understand how much OSAGO prices have risen in 2021, let’s consider the conditions proposed by the Central Bank. It was decided not to increase the base tariff, but to expand the range of possible values. In September it will already be 2746–4942 rubles. That is, insurers received 20% up and down. This will provide the opportunity for more flexible regulation of the price of the policy and will make compulsory motor liability insurance more accessible, according to the regulator.
The use of a new tariff structure and an updated BMR will lead to the fact that the average cost of insurance will increase by the same 20%, amounting to about 7,000 rubles. At the same time, you will have to pay significantly more for open insurance. It is expected that its price will increase by approximately 1.5 times. A novice driver should also immediately increase the planned bonus by 50, or even 70% of the average value. But for those who have never been in an accident in a long time, the cost of compulsory motor liability insurance will not only not increase, but will most likely decrease compared to today’s.
The measures taken by the Central Bank are the first stage of reforming compulsory insurance. In the future, an individual calculation of the bonus for each driver is expected. Perhaps in the future the rigid tariff corridor will also be abolished. Companies will compete for every client with minimal government participation.
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.
What's happened?
The Central Bank decided to change the total cost of the MTPL policy by changing a number of coefficients and the insurance tariff. At the same time, there is no direct talk about the rise in prices and even mentions a possible reduction in prices for end consumers - policyholders. However, even the prices of basic tariffs are already known, and they are higher than now.
This initiative is a big step within the framework of the liberalization of compulsory motor liability insurance, planned for several years. This means that the authorities generally want to leave the issue of the cost of policies to the regulation of insurance companies. Whether this is good or bad is a rhetorical question.
View the official document of the Central Bank on the reform of compulsory motor liability insurance.
