Many Russian drivers still latch onto rumors about the so-called mandatory “autocitizenship.” Insurers have pushed to debunk the most common myths widely shared on the street.
Myth 1 – OSAGO is getting more expensive
This belief often pops up alongside moves to expand the OSAGO tariff corridor, adjustments that the Central Bank of the Russian Federation makes in response to current conditions. In practice, insurers say such steps can actually slow the rate of price increases for car insurance. By using the rate corridor, losses from high-risk drivers are offset by increasing premiums for those drivers, while prudent motorists see little change or even decreases in cost. For instance, in the second quarter of 2022, every third car owner received the maximum KBM discount of 56%.
Myth 2 – it takes a long time to receive a payment under OSAGO and there is a high risk of refusal
Under paragraph 21 of article 12 of the law “On OSAGO,” insurers are required to process insurance payments within 20 days from the date of accepting the claim. Refusal to pay must be grounded by valid reasons, which means a conscientious driver has reason to trust that the insurer will settle the claim on time and in full.
Myth 3 – OSAGO payment never covers the cost of repairs
The PCA updates spare parts price guides every three months following the Unified Methodology for Determining the Cost of Restoration Repairs for a Damaged Vehicle, set by the Central Bank of the Russian Federation. This ensures the information on average spare parts costs stays current. The payout amount from OSAGO directly reflects these prices, so changes in the price list can affect compensation levels.
Regular updates to the guidance allow adjustments to insurance benefits in line with market conditions. When the updated spare parts manuals took effect on June 19, the average payment in July rose by 13%, reaching 80.8 thousand rubles.
Myth 4 – Insurance companies refuse to sell policies to high-risk drivers
The law “On OSAGO” protects motorists by prohibiting insurers from denying a policy to a driver who has submitted the required documents, whether in paper or electronic form. A reinsurance pool has been established within OSAGO to support risk categories that might otherwise be underserved. This helps improve access to autocitizenship for drivers who, while deemed high-risk, still meet the necessary documentation standards. This includes taxi operators and others who drive aggressively or accumulate accidents, ensuring they can obtain coverage even if their risk profile is challenging.
In summary, while some changes in pricing or coverage occur, OSAGO remains accessible to a broad spectrum of drivers. The rules aim to balance fairness for cautious motorists with risk-sharing mechanisms that keep coverage available for those who may present higher risk on the road.