Tomorrow will see one of the biggest price hikes for OSAGO policies: The Central Bank’s instruction to expand the OSAGO tariff corridor by 26% in both directions goes into effect. The basic rate of the mandatory car insurance rate is extended to the range of 1,646-7,535 rubles.

Recall that the reform of the “car citizen” began in 2014-2015. Then the base price of the policy worth 1980 rubles was canceled, turning it into a tariff corridor. From that moment on, the initial price of the insurance, solely on the whim of the insurance company, began to “float” in the range from 2440 rubles to 2574 rubles. In the years that followed, this corridor expanded continuously in both directions. The main (until recently) increase occurred in 2018 – by 20% in both directions: to 2746-4942 rubles. And the last expansion of the “corridor” took place at the beginning of this year and amounted to 10% – from 2476-5436 rubles to the range of 2224-5980 rubles, which is experiencing its last day today. Each time, the “extensions” by the Central Bank have been justified by the fact that this was done to take more money from accident drivers. And the hassle-free “mates” will reportedly pay less for policies.

Practice shows that for the majority of car owners (both emergency services and decent people), OSAGO becomes noticeably more expensive with each expansion of the corridor. Only for those who do not get into accidents – to a lesser extent, and for sloppy drivers – much more seriously. The record expansion of the policy rate band, scheduled for September 13, may cause the most serious increase in the price of compulsory car insurance for the majority of Russian motorists.

Tomorrow will see one of the biggest price hikes for OSAGO policies: The Central Bank’s instruction to expand the OSAGO tariff corridor by 26% in both directions goes into effect. The basic rate of the mandatory car insurance rate is extended to the range of 1,646-7,535 rubles.

Recall that the reform of the “car citizen” began in 2014-2015. Then the base price of the policy worth 1980 rubles was canceled, turning it into a tariff corridor. From that moment on, the initial price of the insurance, solely on the whim of the insurance company, began to “float” in the range from 2440 rubles to 2574 rubles. In the years that followed, this corridor expanded continuously in both directions. The main (until recently) increase occurred in 2018 – by 20% in both directions: to 2746-4942 rubles. And the last expansion of the “corridor” took place at the beginning of this year and amounted to 10% – from 2476-5436 rubles to the range of 2224-5980 rubles, which is experiencing its last day today. Each time, the “extensions” by the Central Bank have been justified by the fact that this was done to take more money from accident drivers. And the hassle-free “steersmen” will reportedly pay less for policies.

Practice shows that for the majority of car owners (both emergency services and decent people), OSAGO becomes noticeably more expensive with each expansion of the corridor. Only for those who do not get into accidents – to a lesser extent, and for sloppy drivers – much more seriously. The record expansion of the policy rate band, scheduled for September 13, may cause the most serious increase in the price of compulsory car insurance for the majority of Russian motorists.