The Miser Pays Double: The Expert Explained Why You Shouldn’t Save On OSAGO :: News


In recent months, cases of unilateral termination of OSAGO contracts by insurance companies have become more common. An insurance market expert explains why this happens and how you can protect yourself against unilateral termination of the OSAGO contract to save time and money.

The main reason for the termination of the OSAGO contract is the incorrect statement of the insured’s details, which has a significant impact on the risk assessment and, as a result, on the cost of the policy. This practice by insurers is primarily aimed at preventing fraudulent fraud in an attempt to lower the price of “car insurance”. The fact is that in such cases the OSAGO contract is often drawn up through intermediaries who offer to reduce insurance costs. Unscrupulous insurance intermediaries deliberately provide incorrect information about the capacity of the car or about the place of residence of the insured, as a result of which the insurance company calculates the costs of OSAGO on the basis of lower coefficients. This is fraught with a refusal to pay in the event of an insured event, then the customer will have to pay at their own expense for the repair of the party injured in the accident, which in the current circumstances of the auto parts crisis can hit the wallet significantly. Thus, an attempt to save several thousand rubles will result in the loss of several tens or even hundreds of thousands.

Mikhail Perelman, Associate Professor of the Faculty of Economics and Management of the Moscow Regional Branch of the RANEPA explains:

If you are offered a cheap and “legal” policy to issue an OSAGO policy, it will most likely, at best, result in unilateral termination of the contract by the insurer with no refund of the premium. In the worst case, this insurance with incorrect data will simply burn out when an accident occurs, after which you will have to deal with the payment of compensation to the injured party in court. Insurance companies daily face fraud in its various manifestations, while it is almost impossible to distinguish an attempt to illegally make a profit from a banal error in filling out documents. In fact, the practice of terminating an OSAGO policy with incorrect data is the only mechanism to prevent fraudulent fraud that causes significant damage to the entire market and has a negative impact, including on the costs of “car citizenship”. The abolition of this practice will be a big mistake and will significantly worsen the situation in the market for compulsory car insurance, since in this case insurers will no longer have any influence to oppose citizens who want to get rich in such an easy way. Therefore, I advise conscientious car owners to carefully check the data when concluding an OSAGO agreement, as well as not to trust unscrupulous intermediaries in the pursuit of temporary “profit”. As practice shows, such dubious savings lead to nothing but additional loss of finances, time and nerve cells.“.

The OSAGO: Public Expertise project reminds that the data that significantly influence the risk assessment when concluding an OSAGO contract are information about the car (make, power, age, mileage, etc.), as well as information about the insured, including the location of residence, which affects the territorial coefficient. If false information is provided, the insurance company has legal grounds to unilaterally terminate the contract prematurely.

By Peter Kavinsky

Peter Kavinsky is the Executive Editor at