A number of insurance companies in Russia have started offering OSAGO on credit or in installments, Kommersant reports. The mechanism assumes that the motorist pays only part of the policy at a time, the rest – in installments over a certain period. According to the source, a loan for OSAGO is already being offered by IC Soglasie, in the near future Sovcombank insurance will start promoting a similar service.
The Bank of Russia (the insurance market regulator) notes that the legislation “does not provide for the possibility to sell OSAGO in installments”, but the OSAGO insurance premium can be paid, among other things, from a loan the insured has received from the partner bank of the insurer.
The service is not typical of the OSAGO market, although experts say it will help insurance companies avoid a drop in demand as rates rise. The companies expect that risk category car owners, whose OSAGO policy costs several times more than the base price due to rising coefficients, will be interested in the new motor policy arrangement.
It should be noted that as of May 2022, the average cost of a “car citizen” for cars owned by individuals in Russia was 6,189 rubles (there is no more recent data in the public domain).
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