New MTPL insurance rates

New MTPL insurance rates

Starting today, the calculation of the cost of MTPL insurance policies is changing. For careful drivers, especially the older and more experienced ones, the policy may get cheaper due to the new coefficients. For taxi drivers, however, the rate is likely to increase in price significantly, by 30%, both upwards and downwards. Today a note from the Central Bank on the new rates and coefficients of MTPL insurance comes into force.
The cost of a MTPL insurance policy is calculated by a simple formula: the base rate is multiplyed by the coefficients such as territorial use of transport, engine capacity, age and experience of the driver, and bonus-malus coefficient. It is considered to be a discount for accident-free driving or a penalty for those who have caused an accident.
So, now the Central Bank has set the rate for car owners of individual cars at between 2,224 rubles and 5,980 rubles. It is set by the insurance companies personally for each driver. The tariff is influenced by a large number of factors, ranging from the length of insurance contract with the same company, the brand and even the colour of the car, the number of accidents and the number of traffic fines. All these factors affecting the rate are listed on each insurer's website.
Obviously, for car owners who have been buying a policy from the same company for a long time and get into accidents, the company will reduce the rate. But apart from that, there are another coefficients, which have been changed as well.
The territorial coefficients for Moscow, St Petersburg, Kazan and Novosibirsk are reduced. But they increase for Sevastopol, Simferopol, Magadan and Nazran.
The cost of the policy for young drivers without driving experience will increase. The coefficient has decreased for all drivers over the age of 40 and with more than 10 years of driving experience. But most of all, it has decreased for drivers over 59 years old with more than 14 years of experience. Now it is 0.83 instead of 0.9.
The bonus-malus coefficient has also been also changed. If earlier the rate was multiplied by 2.45 for the driver who had caused three or more accidents during one year, after this instruction came into force, it will be multiplied by 3.92.
But there will be a significant discount for careful drivers. For the first time in MTPL's existence, the reduction will exceed 50%. Those, who didn't cause a single accident within 10 years, will have to multiply their tariff by coefficent equal to 0,46.
But it should be reminded that the bonus-malus is accrued as of April 1st every year. So the effect of this coefficient change will be felt only by the car owners who will conclude a MTPL contract after that date.
But for the taxi owners the cost of MTPL will definitely go up due to the fact that the average accident risk for such cars is 30%. That is, almost every third driver of a taxi gets into an accident through his or her own fault. That is why the insurers tried by all means not to insure such cars. Now they will just charge them the maximum rates - 12,505 rubles. All the multipliers included will add up to a tidy sum. However, if a taxi company would control its drivers strictly, then there is a chance to reduce the cost of car insurance significantly. After all, the bottom line for taxi drivers will be only 2014 rubles.
However, there is a risk that due to growing prices on insurance policies taxi drivers will simply give up purchasing them. Law-abiding car owners will suffer because they will have to go to court to obtain the refund for the damage. According to a recent study by the Protecting the rights of motorists working group, only a quarter of taxi drivers have a properly issued MTPL insurance policy, the rest either have no insurance at all or it is not designed for taxis. At the same time, in 9 out of 10 accidents involving taxis, the driver caused the accident.
If taxi drivers were obliged to drive as accurately as possible and had their own MTPL policy, a camera system could be installed to spot uninsured cars. But for now it's not working.

Photo:, RIA Novosti / Nina Zotina

Back to list