Prices for policies of compulsory insurance of motor civil liability of owners of land vehicles (“autograzhdanka”, OSAGO) after the entry into force of the new law from January 1, 2025, increased on average from 70% to 100%, according to a survey of leading insurance companies in this market, conducted by the news agency “Interfax-Ukraine”.
Thus, according to the advisor to the head of the board of directors of Oranta Elena Mashara, the cost of “auto insurance” both in the company and in the market as a whole has increased on average by 80-90% compared to the previous year. However, if we take into account policies with zero deductible, the increase in insurance payments is about 50%.
At the same time, she emphasized that this growth is not uniform, because now insurers have the opportunity to segment the market more flexibly and in more detail than before, when there was price regulation. For example, at Oranta, the loss ratio of MTPL contracts concluded for electric cars was several times higher than for other types of vehicles. As a consequence, the increase in the cost of insurance payments for this segment is more significant than for other types of vehicles.
In IC “European Insurance Alliance” the cost of “auto insurance” has increased from 70% to 110% and is determined depending on the type of car, place of registration (residence) of the owner of the vehicle (TC), notes the head of the product management department of motor risks of the company Vitaly Bazik.
In IC VUSO this growth amounted to 80-100% that is caused by weighty changes in insurance conditions, in particular by significant increase of insurance limits for payments to victims.
“New limits allow to provide our clients with essentially greater protection in case of road traffic accident, covering losses, which earlier could exceed the limits of the previous amount of coverage”, – noted in the company.
In turn, in IC “Express Insurance” indicated that the cost of their MTPL policies increased by an average of 70-75%, which is due to the new requirements of the legislation, providing for an increase in the sums insured for life and health – from 320 thousand to 500 thousand UAH, for property – from 160 thousand UAH to 250 thousand UAH, the abolition of depreciation for car repair, deductible and limit on the europrotocol.
According to ARX IC, it makes no sense to compare the prices of the old “car insurance” (before the legislation was updated – IF-U) and the new one – they are completely different products in terms of content. It is like comparing a parcel train and an airplane, because the terms of settlement have changed, reimbursement of the cost of parts and components of the car will be made without deduction of depreciation, and all insurers-participants should join the direct settlement, the company explains. At the same time, the insurer specified that in general the cost of its policy varies in the range of 3500-6000 UAH depending on the age of the driver and the vehicle, as well as on the type of car and the region of registration.
As for the average price for this insurance, in IC “Express Insurance” for passenger cars with engine volume up to 1600 cm³ the price of MTPL policies ranges from 2200-5600 UAH.
“We will continue to analyze the dynamics of loss adjustment costs and, if necessary, to adjust tariffs for certain categories of clients”, – stressed in the company.
In IC ARX the cost of “auto insurance” for the car B1 1988 year of manufacture, Kiev, the age of the owner 50-55 years is 3243 UAH (minimum), and for the car B4 2020 year of manufacture, Kiev, the age of the owner 18-22 years – 12 771 UAH (maximum). At the same time, the average payment on policies, concluded under the new conditions, for the first ten-day period of January is UAH 3,520.
According to the data of IC VUSO, their average cost of MTPL insurance policy is now about 4000 UAH. As for the minimum price, it is 500 UAH for a vehicle of the type “motorcycle” and 50 thousand for a bus registered in Kiev.
According to Mashara, for the first days of 2025, the average cost of “auto insurance” in “Oranta” amounted to 2375 UAH, which is slightly lower than the initial expectations of the company.
“This is due to the fact that a new segment of customers joined the insurance market – participants in hostilities and other preferential categories of car owners, previously had the right not to conclude contracts of MTPL. Until 2025, the consequences of road accidents involving them were compensated by the MTSBU Victims Protection Fund, and now, according to the new law “On MTPL insurance”, such persons must conclude insurance contracts with a discount of 50% of the insurance payment”, – said the expert.
At the same time, she emphasized that currently almost 5 thousand contracts with new clients have already been concluded, and the average cost of a discounted policy is 1440 UAH.
Answering the question of what most affects the price, all companies noted that it is the type of vehicle (passenger car, electric car, truck, bus, etc.) and its subtype (engine volume, load capacity), the sphere of use (providing paid transportation services or not), the term of the insurance contract and whether the policyholder has the right to a benefit. An important factor is the region of vehicle operation: in cities with high traffic intensity, such as Kiev, premiums are much higher than in quieter regions. In addition, now insurers have begun to more actively take into account the age and length of service of drivers authorized to drive the vehicle, the nature of car operation.
In ARX added that the company has long introduced an additional coefficient.
“For example, we have a driver of 45-50 years will get a completely different price than a driver who is 18 years old, even if they have the same brand of car in Kiev,” – explained in the company, specifying that such a factor as the history of unprofitability (the presence of accidents) in this case does not affect the cost of the policy.
