The cost of one month’s OSAGO policy will be approximately 20% of the one-year insurance amount. This was told to socialbites.ca by Evgeny Popkov, head of the product management and marketing department of IC MAKS. The bill proposing to reduce the minimum term of the OSAGO convention to one month was passed by the State Duma at its first reading on April 18.
According to Popkov, the cost of a policy for an incomplete insurance year is always relatively more expensive than a year. The reason for this lies in the statistics of losses – the probability of an insured event in the first months of the policy is much higher than in the last months, the expert explained.
“In the same OSAGO, a discount factor of 0.7 is also applied for policies with a validity period of not more than 6 months. That is, the cost of the annual policy is not reduced by half, but only by 30%. Therefore, the same logic can be followed in pricing short-term policies. And a monthly policy will cost about 20% of the annual premium,” Popkov said.
Companies Ingosstrakh and AlfaStrakhovanie agree that the cost of one month of OSAGO will not be equal to the cost of an annual policy divided by 12, and will be less profitable than in a year.
In contrast, Sergey Demidov, vice president of auto insurance at Renaissance Insurance Insurance Company, noted that the cost of a “car citizen” per month will be only slightly less than the cost of a three-month policy due to the short-term loss rate. – Term programs are high. The one-month cost of the policy will depend on the approved coefficient (the coefficient of insurance rates based on seasonal and other temporary use of the vehicle), he said.
If the bill is passed, many nuances will appear if they approve a change in the terms of the contract instead of the minimum period of use of the car (now the contract is valid for 1 year, and the period of use may be several months ), drew the attention of Pavel Yakovlev, an employee of the RESO-Garantia retail insurance department.
“Now, if a customer has purchased a 1-year policy with a 3-month usage period and his vehicle is damaged in an accident, he can apply directly to his company through the compensation system, even if the usage period has expired. expired and the contract did not expire. If the client has a policy with a validity period of 3 months and forgets to renew it in time, then after an accident caused by the fault of another driver, he will only be able to contact the offender’s company, ”he said. Yakovlev.
Previously reportedThat the deputy head of the Ministry of Finance authorized the repair of cars under OSAGO with used spare parts.