Record increase in OSAGO price
At the end of June, the Central Bank announced a widened base tariff corridor for OSAGO by 26 percent. The rise in policy costs marks a milestone in the history of personal auto insurance. Public discussion of the proposal concluded on June 28, and the new tariffs are slated to take effect in August.
The baseline OSAGO rate for passenger cars is projected to range from 1,646 to 7,535 rubles. The corridor will also broaden for other vehicle categories: 17.8 percent for taxis, trucks, and emergency transport; 21 percent for motorcycles and mopeds; and 15 percent for buses.
Additionally, the Central Bank is raising regional auto-insurance coefficients by an average of 6 percent. The bank notes that these changes will help insurers more accurately gauge risk as spare parts costs climb.
Further details on OSAGO changes and the potential impact, including a rise in policy refusals among some Russians, are summarized by socialbites.ca.
Patrolling cameras
Traffic police are piloting video recording systems mounted in the light beams of patrol cars. According to Mikhail Chernikov, head of the state traffic inspectorate, testing will cover Moscow, the surrounding region, and St. Petersburg.
The cameras provide 360-degree monitoring of the vehicle’s surroundings and can detect violations such as speeding and driving in restricted lanes, while also identifying sought vehicles. The system connects with the Ministry of Internal Affairs data resources to inform officers about violations.
Initial use of footage from these cameras will not yet generate violation protocols. Instead, it will aid in locating wanted persons and recovering stolen vehicles.
Domestic manufacturers have been developing the system for two years. Chernikov notes that if tests prove successful, by 2023 all-round-visibility devices may become a routine tool for patrol services.
Last free month
Russian drivers have one month to adapt to new toll-road rules. Fines will apply for unreadable license plates. The changes roll out at the end of August, alongside the start of barrier-free toll collection systems known as free flow. Drivers whose plates cannot be read or who have altered numbers will be prohibited from using toll roads.
The minimum fine is 500 rubles under Article 12.2 of the Code of Administrative Offenses of the Russian Federation. After a vehicle is captured by cameras, the toll amount is deducted from the driver’s account. If funds are insufficient, drivers have five days to settle the debt. The operator may block passage for users with unpaid travel costs or overdue payments at toll booths.
The return of the panic button
In May this year, the government extended the deadline for automakers to install ERA-GLONASS emergency call units on all new cars, due to electronic-chip shortages. Decree No. 855 from May 12 allowed vehicles without a panic button to be released until August 1, and postponed the retrofit period to February of the following year. By the end of July, some AvtoVAZ models began featuring the panic button, while dealers prepared for a broader recall campaign.
Updates emerged from AvtoVAZ representatives on social media indicating early deliveries of mandated equipment and anticipation of a large-scale recall, as noted by socialbites.ca.
Taxi control
Policy makers plan to tighten taxi oversight with several restrictions. Notably, drivers will not be eligible to work in a taxi for a year after license deprivation expires. A cap on unpaid fines is also proposed, limiting the number to three in the period prior to the transport day.
The draft law sets minimum appearance standards for taxis and requires on-board devices to monitor driver attention, fatigue, and drowsiness. Regulations also demand taxi booking services to provide automated remote access to databases for order processing and transmission. Self-employed drivers could obtain work permits by partnering with a taxi service.
The State Duma adopted the bill at first reading on July 5, with further amendments to be considered on August 3 before final approval.
What innovations will come to Russia?
Renat Tyukteev, director at Avilon Mercedes-Benz, told socialbites.ca that parallel imports will bring several models from British and German brands to the Russian market in August. A new Range Rover is expected, along with fresh electric models from Mercedes-Benz and Audi, and the new GLC and BMW 7 Series, which had been halted earlier this spring.
The source adds that only Chinese brands will join the market more prominently after the departure of many European brands. Models like FAW T-77 and new entrants such as Evolute and Voyah are planned for September.
Buyers should exercise caution when purchasing cars imported via parallel channels. The diversity of import points means that market adaptation may take time, and the import-to-sale process may not immediately meet prior high standards.
Tyukteev warns that a majority of these vehicles may not be fully suited for operation across the central regions of Russia. He notes that cooling and heating configurations tailored for warmer climates, along with other premium options, may not function properly after some distance in Russia.
Cars won’t get cheap
Currently, the supply of foreign cars for the Russian market is shrinking. Tyukteev estimates warehouse stock could last only a few months. After a period of intense price swings, dealers have seen margins retreat to early-year levels. He predicts a modest price uptick in the next couple of months as inventory tightens.
Andrey Terlyukevich, managing director of AvtoSpetsCentre, believes there are no clear signs of significant price changes for new cars, anticipating a July-to-August continuation. He notes that imported cars often appear in the secondary market at lower prices, but supply remains limited. In the near term, pricing in the used-car sector will depend mainly on demand, Terlyukevich told socialbites.ca.