Alexander-72
It should be added that when we buy a policy at the old price, we also receive payments at the old price.
Alexander, this is not entirely true. If you buy a policy from April 1 to April 11, then its price will be old and the amount of payments will be new.
Good luck on the roads!
I'm a little confused. The policy was purchased (issued) on March 20, naturally at the old price and maximum discount (RUB 2,800). It comes into effect on April 4. Question: “Will the amount of payments be the same as the old one or the new one?”
servit, I found the answer to your question. Clause 4 of the insurance policy:
4. The insurance amount, within the limits of which the insurer, upon the occurrence of each insured event, undertakes to compensate the victims for the harm caused, is established by Federal Law of April 25, 2002 No. 40-FZ “On compulsory insurance of civil liability of vehicle owners” as amended in force on the date of conclusion of this agreement.
Good luck on the roads!
Hello. I can’t figure out how to calculate the cost of the policy.
The general formula seems to be this: we multiply the base tariff by all coefficients.
Two things are not clear:
1. Why does the base tariff have a minimum and maximum value, what does this depend on?
2. I didn’t understand the KBM sign - the coefficient of payments made. What is indicated in the second column (class at the beginning of the annual insurance period), what is “M”? Specifically, if I have been insured since the introduction of compulsory motor liability insurance and have never been in an accident due to my fault, then what is my CBM? In general, how to use this table?
The rest of the coefficients seem clear.
Now insurers have been given the opportunity to compete, because the base rate is determined by the insurance company, ranging from Caraway. to Tmax.. Most likely everyone will choose the maximum possible... Although perhaps someone will not join this cartel...
Although perhaps someone will not join this cartel...
Although perhaps someone will not join this cartel...Very doubtful, given what is happening in the insurance market.
“The Reds came and robbed, the Whites came and robbed... Where should the poor peasant go?”
Well, someone will make it 100 rubles cheaper. Few people will buy from the rest, but there will just be a queue...
Look, technical inspections in many offices are not at the maximum, and in some they are even one and a half times cheaper than the permitted maximum cost...
Because such a cheap compulsory motor liability insurance lures the CLIENT to the insurance company. And then they will sell him voluntary types of insurance, because the client is already ready, with a phone number and address... Many insurance companies do not live by OSAGO alone...
Many insurance companies do not live by OSAGO alone...
CASCO insurance has increased in price by 2-3 times. Apartments at 1.5. Dachas, from 0.5 to 3, depending on the “steepness”. Small insurance companies will close because their appetite will not attract clients. Only a few will survive. So it is still necessary to think about whether compulsory motor liability insurance will survive in some insurance companies until the end of the contract period.
Automobile liability insurance, which is mandatory in our country, is one of the main expenses of a modern motorist.
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Last year, new rules came into force according to which the cost of the policy is calculated in each specific case. After these innovations gained legal force, car owners began to pay 40, or even 60% more compared to the previous period.
As the country's authorities say, this is not the limit for the price increase, because already in 2019 another re-indexation of the cost is planned, after which the compulsory motor liability insurance policy will be even more expensive.
Auto insurance in 2019 and 2019
Almost every motorist still remembers those glorious times when an OSAGO policy cost a pittance and no one even thought about purchasing it: it was accepted as a necessity. However, despite the fact that not much time has passed since those glorious times, the cost of the policy has changed dramatically and today more and more Russians are thinking about whether to purchase insurance.
Insurance in the past
On April 12, 2019, there was a large-scale increase in the price of compulsory motor liability insurance, after which the cost of the policy soared by an amount of 40 to 60% more than it was before. This was due to the fact that, at the direction of the Central Bank of the country, the basic tariffs used to calculate the cost of the policy were significantly changed. If until April 12, 2019 year this tariff amounted to from 2,440 rubles to 2,574 rubles, then after the price increase the tariff was already from 3,432 to 4,118 rubles. The difference is noticeable and almost all car owners noticed it.
Before this increase in prices, there was another one – on April 1, 2019, but it concerned tariffs established in individual regions.
After car owners began to en masse be outraged by such a rise in price, and it was noticed that Russians were refusing insurance more and more often, the Central Bank explained what was causing the change in tariffs. In April 2019, the minimum rate for payments to victims who suffered damage to life and health was increased. If earlier it was 160,000 rubles, then after the changes it became 500,000 rubles. The limits on property payments have also changed.
Today's situation
Currently, the basic tariffs of 2019 are in effect in the Russian Federation, taking into account correction factors. The issue of increasing tariffs and changing the calculation of the cost of compulsory motor insurance policies is at the stage of development and approval, so it is too early to say definitively that before the end of this year changes will overtake motorists.
Increase in price of compulsory motor insurance
Why might the price change?
RSA has conducted some research, based on which they suggest that this year the cost of an MTPL insurance policy may change upward. This is largely due to the rise in the dollar exchange rate, which in turn will lead to an increase in the cost of auto parts and repair work to restore damaged vehicles. Since insurance companies in this case will incur greater losses than now, they will need more money to reimburse expenses.
Analytical KRA experts report that to date (data as of June 2019) the unprofitability of motor insurance under compulsory motor liability insurance is slightly more than 73%. It is predicted that by the beginning of next 2019, losses will become even greater and will amount to about 94%. If this happens, then at the current cost of the policy, insurers will not be able to cover all insurance costs, even if they use assets from other types of insurance.
This is a direct prerequisite for increasing compulsory motor liability insurance rates already this year in order to prevent insurers from collapsing at the beginning of the next calendar year.
The main reasons that lead to losses are considered to be high insurance payments in case of harm to the life and (or) health of citizens, as well as the increase in the cost of repair work and auto parts for cars damaged in an accident.
The second reason for the increase in the cost of compulsory motor liability insurance (not for all citizens, but only for certain “problem” categories) is the too rapid growth rate of the number of accidents on the roads. If car owners who neglect driving culture and traffic rules pay a lot of money to obtain an insurance policy, this will make them think about their behavior on the road and reconsider it for the better in order to pay a smaller amount next time.
What to expect?
This year, a lot of changes are planned regarding the cost and procedure for issuing MTPL policies. But, do not immediately panic, because it has not yet been finally decided on what date and month such changes will come into force, as well as who exactly they will affect.
The plans announced today for calculating the cost of insurance include the introduction of an additional (tenth) coefficient, which will affect the entire cost of insurance as a whole.
So, it is already known for sure that it will be of an increasing nature.
To date, the following algorithm of its action has been announced:
- if you have less than 5 traffic violations in the current year, then your coefficient will be equal to 1;
- if you violated traffic rules from 5 to 10 times a year, then be prepared for your coefficient to increase to 1.86;
- 10 – 15 violations in a calendar year will entail the application of a coefficient of 2.06;
- if you have from 15 to 20 violations - 2.26;
- everything above is 3.05.
Those. those who constantly violate the rules of driving on the roads of our country must pay almost three times more for compulsory motor insurance than a conscientious and decent driver.
This is the first possible option for increasing prices for compulsory motor insurance, but there is another one in the press. According to the second scenario, violators with 5 violations behind them will have to pay the cost of compulsory motor liability insurance, taking into account an increasing factor of 3.12. Hardcore violators should be prepared for even higher tariffs, up to an 8-fold increase in cost from the original.
As you can see, if you are a law-abiding citizen who carefully drives your vehicle and has no violations, you can rest assured that no changes in the cost of compulsory motor liability insurance are expected for you this year.
Moreover, the Government of the Russian Federation has calculated that if an additional increasing factor is introduced for motorists who commit frequent traffic violations and road accidents, then the driving culture will improve significantly, and the number of accidents will be reduced by at least 30%.
Will the cost of the policy decrease?
Currently, there is little hope that the cost of the policy may decrease, at least a little, or at least remain unchanged after the introduction of an increasing coefficient.
A. Zhuravlev, a current State Duma deputy and member of the United Russia party, made a proposal that the engine power factor should be excluded from calculating the cost of the compulsory motor liability insurance policy.
The politician believes that this characteristic of the car in no way affects the creation of an emergency situation on the country's roads.
If you pay attention to the statistical data regarding road accidents, the vast majority of accidents occurred with the participation of small vehicles.
Based on the above, we can come to the conclusion that A. Zhuravlev’s proposal is not unfounded and has a right to exist.
What else can we expect from OSAGO this year?
2016, like recent years before it, brings an increasing number of changes not only to the calculation of the cost of compulsory motor liability insurance, but also to the procedure for issuing a policy and concluding a contract.
Among the most significant changes this year are:
- By the end of the calendar year, there are plans to introduce photo and video recording of car license plates in order to identify drivers who have not concluded a compulsory motor liability insurance agreement and are driving a vehicle without a policy. To launch a trial version of the joint project, some agreements have already been reached between the main authorities that control the availability of insurance policies for drivers - the traffic police and insurance companies. The first trial cameras will appear in the capital Moscow and Kazan. Initially, it is planned that the cameras will be triggered on violators of traffic rules, and then these people will “break through” the database of insurance companies regarding whether they have an MTPL policy.
- A bill is currently being prepared according to which insurers will be able to waive the single tariff approved by the Central Bank of Russia. In the near future, insurers will be given the freedom to choose the base tariff, but within a clearly limited corridor - from 20 to 30%.
- The innovations will also affect the activities of insurance agents themselves. If at present they can refuse to conclude an insurance contract for you, if you, for example, do not want to conclude contracts for additional types of insurance, then in the near future, penalties may be imposed on the insurance company for an unfounded refusal to conclude compulsory motor liability insurance. A similar punishment will befall those agents who forcefully impose insurance policies that you don’t need. Estimated fine amounts have been announced: 5,000 rubles for refusal to individuals and from 100,000 to 500,000 rubles for legal entities.
- In view of the difficult economic and financial situation in the country, insurers were obliged to form insurance reserves at the expense of assets. This money should serve as a guarantee for the repayment of debt obligations of policyholders to injured parties.
- Changes will also be made to the system for checking OSAGO policies. Thus, it is planned that the right to conduct inspections of insurers will be granted to some public organizations and associations. Thus, they will be able to influence the activities of insurance companies.
Another positive change in the procedure for obtaining MTPL policies was that from July 1, 2019, it became possible to purchase an electronic policy, i.e. available in the database, but not on hand, i.e. There is absolutely no need to carry such a document with you. At the beginning of the year, until July 1, this opportunity was of a test nature and was not available to everyone, but the success of its use made it possible to introduce widespread use of electronic OSAGO policies starting in the summer of 2019.
Thus, 2019 does not plan large-scale increases in compulsory motor vehicle liability insurance tariffs for all citizens, but affects only the interests of certain categories of drivers who are considered “problematic” and behave on the roads contrary to traffic rules. It is not yet known when such innovations will come into effect, since the final version of the increasing coefficients is at the approval stage. In addition to changes in the cost of the MTPL policy, there are a number of changes that will affect not only the interests of car owners, but will also slightly limit insurance companies.
Attention!
- Due to frequent changes in legislation, information sometimes becomes outdated faster than we can update it on the website.
- All cases are very individual and depend on many factors. Basic information does not guarantee a solution to your specific problems.
The insurance market suffered heavy losses in 2014. Experts say that its growth was only 10 percent, while for the same period in 2013 this figure was 13 percent. The biggest blow came to the auto insurance market.
What is it connected with?
Experts attribute the market decline to the weakening of the ruble against the main currencies: the dollar and the euro. As a result, car prices are rising, the consumer market is declining, and demand for imported spare parts has increased in price.
In such a situation, insurance policies cannot cover the cost of repairing equipment, which leads to serious losses and the need to take drastic measures. The most acceptable and productive option was to increase prices for basic insurance services. The cost of the insurance policy must include possible losses, the price of vehicles and components. It is expected that in the spring of 2015 the cost of CASCO insurance will rise by 30-40 percent. Of course, increasing the price of insurance cannot completely solve the problem, because users can completely refuse the service. At the same time, having increased income, you can lose part of the profit due to a reduction in volumes.
Experts say that the rise in CASCO prices is associated not only with rising prices, but also with the outflow of cars abroad. Due to the fall in the ruble exchange rate, the car market has become interesting for buyers from Belarus and Kazakhstan. As a result, new cars are insured at the place of registration, reducing the domestic market and leading to serious losses in the industry.
What problems will arise in the market?
In most cases, the CASCO policy was sold together with car loans. But today some banks have refused this service or seriously raised the interest rate. In most banks, the car loan rate has reached 20 percent, which is a real record and absolutely unprofitable for ordinary consumers. Changes in the policies of some banking organizations were also indicative. For example, on the website of Sberbank and a number of other financial institutions, the car insurance section was removed, as a result of which CASCO sales also went down. Again, the solution to the problem, albeit temporary, was to raise the price of a standard policy.
How is it going with OSAGO?
If within the framework of CASCO it was possible to close the gaps in income by increasing the price, then in the case of compulsory motor insurance the situation is much more complicated. This is due to the fact that the MTPL policy had difficulty covering expenses before, and in the realities of the modern market it has become absolutely unprofitable. Most insurance companies require you to stand in line to purchase a policy. The period for receiving the service often extends to 30 days. A shortage of MTPL or, as car owners say, “insurance for dummies,” can again lead to an increase in the cost of services provided.
OSAGO tariffs will be recalculated from April 1 of this year. Most likely, insurers will agree to another increase in cost. It is expected that tariffs will increase by 15-20 percent, while the insurance companies themselves are demanding an increase in the cost of insurance policies by at least 20 percent. Experts do not deny that by April-May of this year, the cost of insurance, including in the automotive industry, in the transportation of goods and real estate, may increase by another 25-30 percent.
What opinions are there?
Some experts note that the devaluation of the ruble and the decline in consumer demand did not in any way affect the profitability of the industry, so there is no point in raising tariffs. Today, companies need to think about how to develop the industry, attracting customers, creating new profitable offers. This will be the most convenient and productive anti-crisis method that can solve the problem.
It is still unclear what step the main market participants will decide to take, but, most likely, OSAGO policies will become even less accessible (a kind of shortage for the product will form), and CASCO will continue to rise in price, trying to recoup the insurance company’s costs for car repairs or liquidation of an insured event .
Experts note that the crisis has least affected such market sectors as medical insurance, cargo transportation, liability and property insurance. Most likely, the market will be in limbo. All measures taken will be focused on changes in the industry, as well as on anti-crisis measures. Currently, measures are being taken to increase the amount of mandatory insurance payments, as well as to reduce the period for completing the necessary documentation. But even such measures cannot regulate the process; at least, no positive changes (financially) are expected for clients of insurance companies. But these measures should lead the industry out of the crisis.
In April 2015, amendments to the law on compulsory motor liability insurance came into force, regulating tariff corridors for insurance companies. The increase in the minimum threshold of the base rate affected the price of the compulsory motor insurance policy and became a reason for dissatisfaction among many car owners. But will the cost of compulsory motor insurance remain at the current level or should car owners wait for a new rise in prices?
As Igor Zhuk, director of the insurance market department of the Bank of Russia, stated to representatives of the ASN: the mega-regulator is closely monitoring the factors affecting the unprofitability of MTPL policies for an insurance company, and can urgently increase the price of motor vehicle insurance if unprofitability may lead to a new insurance crisis.
What affects the cost of compulsory motor insurance?
Since OSAGO is compulsory insurance, its cost is established at the legislative level and is formed as follows: there is a base rate - it is determined by the Bank of Russia and depends on many factors, including the cost of repairing a car involved in an accident. The base rate since April 2015 has been in the range from 3,432 rubles to 4,118 rubles. What base rate will ultimately be determined by each insurance company independently; most importantly, it must be within the tariff corridor.
Changes in the base rate in April were due not only to an increase in payments for health damage, but also to an increase in the unprofitability of compulsory motor liability insurance for insurance companies. The unprofitability was due to the high cost of repairing cars after they were involved in an accident. To put it simply, it was not profitable for insurance companies to sell MTPL policies. This led to the fact that auto liability policies were not sold without additional health insurance, and insurance companies also tried to minimize payments in case of insured events. Of course, such measures caused negative emotions among policyholders, which led to an increase in complaints to the Russian Union of Insurers and the Bank of Russia against insurance companies.
The increase in the cost of compulsory motor liability insurance has reduced the losses of insurance companies. They, in turn, stopped imposing additional services and the flow of complaints to the Central Bank decreased.
But the new base rate was calculated taking into account the April dollar exchange rate. The jump in the dollar in August 2015 affected the cost of car repairs, the price of spare parts, and the cost of paint and varnish materials. A rise in the dollar exchange rate can make compulsory motor liability insurance unprofitable for insurers again, and insurance companies already know how to combat unprofitability.
At the moment, the Central Bank, according to Igor Zhuk, is monitoring the current cost of spare parts and the price of car repairs in order to determine whether OSAGO can continue to be sold at current prices. If monitoring shows that the price needs to be changed, the Central Bank will do so.
What can prevent prices for compulsory motor insurance from rising?
It should be noted that on September 11, 2015, the Russian Government discussed the possibility of establishing a minimum period during which the Central Bank cannot change tariffs for compulsory motor liability insurance.
The bill, submitted for discussion to the State Duma in March 2015, proposes setting a minimum period of 1 year when the Central Bank can change the base rate. The second important point of the law proposes to freeze the ability to adjust the price of compulsory motor insurance until 2017.
If the first amendments were supported by legislators, then the issue of freezing tariffs was not considered. Nobody knows the exact timing of the adoption of the bill.
At the moment, open questions remain: Will the Central Bank adjust the cost of compulsory motor liability insurance in 2015 or will it not have such an opportunity due to the entry into force of the bill on minimum terms? Could the minimum terms have a negative impact on the cost of compulsory motor liability insurance, since the mega-regulator, when raising tariffs, will introduce additional risks associated with the ability to change the price of a motor vehicle license only once a year?
On average, the MTPL policy for a passenger car owned by an individual has increased in price by 41–60% since April 12, 2015. In no case and in no region, even taking into account the territorial coefficient, will the cost of compulsory motor liability insurance increase by more than 100%, says the Central Bank of Russia.
In addition to increasing the basic rates of compulsory motor liability insurance by at least 40%, the Central Bank of the Russian Federation increased the tariff corridor for insurers from 5 to 20%. A tariff corridor is a price range within which an insurance company can set its cost for an MTPL policy.
Increase in MTPL tariffs
The increase in MTPL tariffs affected almost all types of vehicles. The reduction in the base tariff occurred only for two types of vehicles - motorcycles, mopeds and passenger ATVs, as well as tractors, self-propelled construction and other machines
Changes in territorial coefficients by region
In addition, changes affected territorial coefficients. Changes occurred both downward and upward.
Odds have increased
The maximum – 25% – increase in territorial coefficients will occur in the Kamchatka Territory and Mordovia.
Odds have dropped
The most significant decrease - by 41% - was in the Magadan region.
Table of changes in territorial tariffs by region
The table shows tariffs only for the regions affected by the changes. You can see the full table of territorial coefficients here.
How the cost of the MTPL policy will change
For example, for a car with a power of 101-120 hp. (Ford Focus, Hyundai Solaris, Lada Priora/Granta), if the policy includes drivers over 22 years of age with more than 3 years of experience, the approximate cost of the policy will be:
What will car owners get in return?
(according to the Central Bank)
Physical availability of MTPL policies.
Increase in insurance payments for damage to life and health from 160,000 to 500,000 rubles.
A new procedure for reimbursement of expenses for restoring the victim’s health - with a transparent methodology that established clear amounts depending on the type of injury.
Stopping insurers from “evading” acceptance of claims for insured events.
