The CMTPL reform has been completed. What is done? A number of additional factors have appeared that affect the final price of insurance. In particular, the final cost of the policy will depend on the degree of the driver’s recklessness: the more he violates, the more you will have to pay.
What about benefits for low-income citizens and pensioners, have they survived? Igor Yurgens, President of the Russian Union of Insurers, answered this question to the AiF publication.
Today, the Bank of Russia provides for the KVS coefficient (coefficient of age and experience), which provides for a lower cost of the policy for pensioners with extensive driving experience. Moreover, this coefficient will be lower with an increase in the driver’s age, even with a small driving experience.
The OSAGO policy does not provide for any special reducing coefficient for veterans, however, for disabled people there is compensation in the amount of half the cost of the insurance premium they paid.
Elderly drivers can also get benefits on condition of accurate, accident-free driving. For this, the MSC coefficient (bonus / malus coefficient) is provided, which changes depending on the presence or absence of previously issued insurance payments. Sometimes the MSC for particularly “problem-free” drivers can reach lowering values up to 0.5.
There are special conditions for summer residents, including the elderly. Many people use the car only in the warm season, for example, for trips outside the city from May to October. For such car owners, the value of the insurance rate coefficient (KS) has been reduced, depending on the duration of the vehicle operation season.
For example, when using a car for 5 months a year, the COP has a value of 0.65, and with 3 months it reaches a value of 0.5. All of the above coefficients KVS, KBM and KS are applied together, the combination of their multiplication can significantly reduce the final cost of the CMTPL policy.
In addition to the coefficients depending on the length of service, age and trouble-freeness of the driver, as well as the seasonality of operation, other factors are taken into account when calculating the cost of insurance. This is the power of the car, the region in which this car will mainly move.
In each subject of the Russian Federation, they may differ significantly. For example, in Moscow and St. Petersburg the regional coefficients will be much higher. It is worth remembering that the cost of insurance also depends on the number of persons entered into it. Thus, using various coefficients, it is possible to achieve the most optimal cost of an OSAGO insurance policy.