Petr Shkumatov Dispelled Rumors of Rapid Rise in OSAGO Cost :: News

Published by
Peter Kavinsky

Against the background of massive reports of an increase in the cost of OSAGO policy after the extension of the tariff corridor in September, the head of the Working Group “Protecting the rights of motorists” of the All-Russian Popular Front, Petr Shkumatov, answered the ask how the prices for car citizenship are actually going.

“They say they milk the chickens. Even before the extension of the tariff corridor on September 13, 2022, it had a very wide range between the upper and lower limits, allowing insurers to increase insurance costs for all motorists in a row, if they had such intentions. Therefore, it is illogical to say that the expansion in September is the reason for the increase in policy prices.

The price of an OSAGO policy directly depends on the average cost of spare parts and standard labor, the severity of an accident if the car owner has had it and, most importantly, the number of accidents. Roughly speaking, we take the costs of spare parts and standard working hours, on which, taking into account the seriousness of the damage, the amount of the cash payment or the repair costs depend. And so we get the amount that must go to compensate the damage. If the car owner has had multiple accidents through his fault, it spoils his insurance history. In addition, according to the law, the insurance company uses 20% of insurance premiums to cover the costs of doing business and another 3% for mandatory insurance reserves. There are also a number of requirements from the Bank of Russia, which increase the costs of insurance companies. Essentially, of course, this is the reservation of funds to cover future losses. The cost price of OSAGO consists of all these components. Which of these costs can rise or fall? The cost of spare parts offered on the Russian market has clearly already increased significantly, and the availability of parts from many foreign manufacturers is decreasing. It is true that the number of accidents on the road is also decreasing, as far as I can see, that is, motorists are trying to drive more carefully, understand the situation and such tactics are only to their advantage. For example, in the second quarter of 2022, every third car owner received the maximum discount (54%) for accident-free driving according to the bonus-malus ratio.

I would like to remind you that the cost of OSAGO is completely different for different car owners and the base rate depends on individual risks. So decent people pay less (insurers compete for them), lovers of recklessness and accident arranging or young drivers with no experience pay more, and the average price is like the average temperature in a hospital, one patient has 36.6 °C , and the other 40+ °C It is necessary to study the offers on the market, but many car owners have not yet realized that the price of a policy for the same person with different insurance companies can vary greatly. Such citizens are habitually insured annually with one insurer and purchase insurance which is more expensive than they could possibly afford.

I believe that the policy cost situation in OSAGO is generally stable and there will be no sharp price increases for everyone in a row. Most importantly, even with an average policy price of 6,000 rubles, OSAGO is still an affordable insurance product. For example, refueling a car will cost 1,500-2,500 rubles. It turns out that the annual cost of OSAGO is comparable to the monthly cost of refueling a car. At the same time, we must not forget that over the past 3 years, insurers have managed to keep the average cost of policies at a level of about 5,600 rubles, despite the many crisis phenomena in the segment. In my opinion, this shows their customer focus towards policyholders.

Finally, I would like to note that legislators and insurers should not abandon the idea of ​​selling OSAGO in installments, as this can be a relevant solution for the most failing insurers without the ability to cover the full cost of the policy by the time. But even I, as a prudent driver and buying conditional insurance for 5,000 rubles, would take this opportunity.

Peter Kavinsky

Peter Kavinsky is the Executive Editor at cablefreetv.org

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