Insurance company specialists, when determining the cost of an MTPL policy, take into account many coefficients, each of which affects the final amount in a certain way. One of such coefficients in OSAGO is KVS.
In this article we have collected detailed information about what it is, how it is calculated and in what cases it is applied. We hope that this information will be useful and will help car drivers choose the best car insurance option.
What is KVS in OSAGO?
KVS in compulsory motor liability insurance is the coefficient of the driver’s age and experience. There are certain parameters for this coefficient:
- Namely, it will have an increasing rate if the person’s age is under 22 years and driving experience is less than 3 years. With such values, the VAC will be equal to 1.8.
- If the driver’s age is over 22 years and his experience is less than three years, then the FAC will have a value of 1.7.
- In the case where the age has not reached 22 years, and the work experience is over 3 years, then this coefficient will be equal to 1.6.
- Provided that the age is over 22 years of age and the experience exceeds 3 years, the FAC will be equal to 1.
PIC table for compulsory motor liability insurance for 2021
Current VAC values:
| Experience | |||||||||
| 0 | 1 | 2 | 3-4 | 5-6 | 7-9 | 10-14 | More than 14 | ||
| Age | 16-21 | 1,93 | 1,9 | 1,87 | 1,66 | 1,64 | X | ||
| 22-24 | 1,79 | 1,77 | 1,76 | 1,08 | 1,06 | 1,06 | X | ||
| 25-29 | 1,77 | 1,68 | 1,61 | 1,06 | 1,05 | 1,05 | 1,01 | X | |
| 30-34 | 1,62 | 1,61 | 1,59 | 1,04 | 1,04 | 1,01 | 0,96 | 0,95 | |
| 35-39 | 1,61 | 1,59 | 1,58 | 0,99 | 0,96 | 0,95 | 0,95 | 0,94 | |
| 40-49 | 1,59 | 1,58 | 1,57 | 0,95 | 0,95 | 0,94 | 0,94 | 0,94 | |
| 50-59 | 1,58 | 1,57 | 1,56 | 0,94 | 0,94 | 0,94 | 0,94 | 0,93 | |
| More than 59 | 1,55 | 1,54 | 1,53 | 0,92 | 0,91 | 0,91 | 0,91 | 0,90 | |
FAC has a significant impact on the cost of an insurance policy. With low values of the coefficients KVS and KBM (bonus-malus, accident-free), you can issue a policy at the minimum price for a specific region.
Factors that influence the price of compulsory motor liability insurance
There is a certain algorithm for calculating the MTPL agreement. It is as follows:
- The base rate is taken. It can have different meanings depending on the type of vehicle and who owns it. Namely, a legal or natural person. It is worth knowing that the base rate is set by government decree and has a range. For example, the minimum base rate for category B is 3912 rubles, and its maximum value is 4118 rubles. These are amounts for individuals. If the owner is a legal entity, the rate will be different. And so on for each category of vehicle.
- Then the odds are applied to the tank bet. The original amount is multiplied by their value.
- The cost of an MTPL policy depends on which region of the Russian Federation the owner is registered in. This coefficient is determined by the payment index. There is a table that shows all regions of the Russian Federation, republics and territories. There is also a certain significance for cars whose owners are registered in foreign countries.
- For passenger cars, the cost of the policy is affected by their horsepower.
- Number of persons admitted to management. Namely, a limited circle of drivers, or an unlimited one. If the circle of those admitted to management is unlimited, then the insurance contract will cost 80 percent more.
- Bonus-malus coefficient. Accumulated discount under MTPL. For each accident-free year of driving, minus 5 percent is given. In the event of an accident, this criterion increases. How much the CBM will rise depends on the number of insured events. The maximum value is 2.5 and the minimum is 0.5.
- For trucks, the contract price is affected by whether they will be used with or without a trailer.
- Age and length of service of persons admitted to management. There are certain parameters when a multiplying factor is applied.
What coefficients make up the price?
The price of compulsory motor liability insurance in 2021 is calculated using a special formula, which includes all key coefficients, including territorial, length of service and accident-free driving. But the amount received largely depends on the power of the transport propulsion system.
Main components used in the formula:
- TB is a basic tariff, a specific number for each type of equipment, be it cars or trucks, special equipment or motorcycles.
- CT is a territorial coefficient, which is compiled based on the number of accidents occurring in a specific region of the country. It directly depends on population density and traffic congestion in a constituent entity of the Russian Federation. The safer the area on the map, the lower the indicator will be; the higher the probability of an accident, the higher it will be.
- KBM is an indicator that acts as an incentive for drivers who drive carefully, follow traffic rules and do not cause accidents. Depending on its value, a discount is formed for the purchase of an MTPL policy. In some cases it can reach 40%. But it “works” in the other direction, not lowering the amount, but increasing it several times. For example, if a person often gets into accidents, then he will have to purchase a document at high rates. A recalculation is made for each individual period.
- KO is a limitation on the number of persons. Usually, no more than 5 people fit into the insurance policy. They must have a driver's license of the appropriate category. The more people are entered, the higher the indicator becomes.
- KVS is a value that is responsible for the number of complete years and experience of a person. The abbreviation stands for “age and experience coefficient”. It reflects the client's reliability in matters of accident-free driving. If he has been driving for less than 3 years, he is at risk.
- KM is an indicator of the engine power of the vehicle that is planned to be insured. If the engine is less than 50 horsepower, it is 0.6. The largest possible is 1.6. Typically used for heavy duty equipment, over 150 hp.
- KN is the number of violations committed. The indicator takes into account all insured accidents that occurred during a certain period due to the fault of the client. In some cases, the cost of the policy greatly increases if there have been many accidents.
- CP is the validity period of the policy. The minimum period must be 1 year, after which the contract is terminated and will need to be concluded again.
It is important to know! To obtain a specific value for the cost of compulsory motor liability insurance, all these indicators are multiplied together. To simplify the work with preliminary calculations, companies offer special calculators on their websites. All actions are completed within a few seconds - the user only needs to fill in the basic values.
How to calculate your age and experience coefficient?
This coefficient is calculated quite simply. Namely, if a person is under 22 years of age and his driving experience is less than 3 years, then an increasing coefficient of 1.8 is applied to the calculation of the compulsory motor liability insurance policy.
If the driver is over 22 years old and has less than 3 years of driving experience, then this coefficient is 1.7.
In a situation where the driving experience exceeds three years, and the driver is under 22 years old, then the FAC will be equal to 1.6. An increased value will not be applied if the person admitted to driving has more than 3 years of driving experience and his age exceeds 22 years.
Factors influencing the cost of compulsory motor liability insurance
An insurance company takes into account many components when issuing an MTPL policy.
The final cost of the document is influenced by the following factors:
- Vehicle type. It is clear that insurance for a truck should cost more than a similar document for a passenger car. This is explained by the fact that the specifics of the operation of a truck involve a greater number of emergency situations, which affects the cost.
- Vehicle age, mileage and engine power.
Directive of the Central Bank of the Russian Federation No. 3384-U dated September 19, 2014 - The insurer takes into account all kinds of risks, so even the type of locality where the car is registered is taken into account. If it is a large city, then there will obviously be more cars there, i.e. the risk of accidents increases. Accordingly, the price of the policy will be higher.
- Driving experience. If the driver has sufficient experience driving vehicles, the likelihood of getting into an accident is reduced. It is believed that if the driver drove the car longer, then in a critical situation he will better orient himself, thereby avoiding an accident. And if the driver is inexperienced, then the risk of an accident increases, as does the cost of the policy itself.
The value of KVS in OSAGO
When calculating the cost of an insurance policy, it is worth noting that all insurers use a variety of coefficients, which can very significantly affect the final amount declared for payment. If you know about all the nuances of this issue , the driver will be able to use the most profitable insurance option for him. Now we will take a closer look at the OSAGO PIC, let’s try to understand in detail what it is, and also find out the personal meaning of the PIC for each of the vehicle owners.
It is worth knowing important nuances regarding PIC, first of all, to protect your rights and interests. Also, this information will give potential clients a chance to get acquainted with all the capabilities of KVS OSAGO.
As you probably already understood, KVS stands for quite simply - it is an abbreviation for “age-experience coefficient”. This concept is one of the most important values that will be used in calculating the final price of the policy. Everyone knows that a driver's license in Russia can only be obtained from 18 years of age. At the same time, there is no upper age limit, but a person must undergo a full medical examination.
What to consider when calculating FAC
When calculating the cost of an MTPL policy, a multiplying factor is used. It is impossible to exclude it from calculations . In order to know how to calculate FAC, you need to know the following parameters:
- The car owner's age is less than 22 years, and the driving experience does not exceed 3 years. In this case, the FAC will be equal to 1.8.
- If the driver is over 22 years old but has less than 3 years of experience. FAC will be 1.7.
- If the driving experience is more than 3 years, but the driver has not yet reached the age of 22, then the FAC will be equal to 1.6.
- The PIC will be equal to 1 if the driver is over 22 years old and his experience exceeds 3 years.
Next, many are interested in the question of the legality of the age differentiation of drivers. And here it is worth saying that the 22-year limit is absolutely legal, since the standards according to OSAGO are applied by the state itself, and not by insurers . Certain conclusions regarding the fact of discrimination against the population under 22 years of age are based solely on common sense. The real facts in this case are the result of obtaining accurate scientific statistics. They say the following:
Calculator for calculating the cost of compulsory motor liability insurance for various regions
- Both men and women under 22 years of age are characterized by a much lower level of social responsibility. This factor is known to everyone, except for those individuals who have not themselves yet reached this milestone period.
- Young drivers are much more likely to be reckless, drive carelessly and, as a result, get into traffic accidents.
- Persons under 22 years of age, due to a less adequate assessment of reality, as well as increased aggressiveness, are intentionally capable of violating traffic rules.
To summarize, it is worth noting that the age category when applying for compulsory motor liability insurance is scientifically justified, quite expedient , and also does not constitute discrimination. If we compare with similar CASCO programs, then a gender division is also actively used, as a result of which women pay an order of magnitude more expensive than men.
Unlike the age category, the period of driving experience applies to all drivers without exception, and it absolutely does not matter what year they were born. The driving experience standard is now 3 years. The most common question is regarding the start of driving experience. Most people are of the opinion that driving experience begins from the time a person receives a driver's license. But this is not true at all.
Several parameters are involved in the pricing of the cost of compulsory motor liability insurance - KBM, KVS.
After the decision of the Central Bank was issued under number 3384-U, the legal side of the issue became completely clear. From now on, the decree states that the beginning of driving experience is considered the date of opening of a certain driving category.
FAC value if there are several drivers
Quite often a practice is used when the compulsory insurance contract includes not one person , but several who can also drive the vehicle. A reasonable question arises: what indicator of FAC should be taken into account?
In this case, the highest coefficient of the driver included in the contract is included in the calculation of the cost of the policy. In other words, if the policy includes a driver who is under 22 years old or has little driving experience, the insurance price will be higher. Naturally, if you want to reduce the cost, then such a driver must be excluded from the contract.
Is it profitable to buy a policy for young drivers?
You should know that according to the legislation of our country, every vehicle owner must have a compulsory insurance contract. And if the car is driven by a young person, then it should be included in the insurance.
Its cost to such a person will be much more expensive. Namely, 60 or 80 percent. There is an opinion that if you make an unlimited number of drivers, then insurance will be cheaper. This is not true, since in this case the cost of the policy will be the same as with a young driver.
Calculation formula
The total cost of a car license is determined by the formula:
\[Cost=TB*KT*KBM*KVS*KO*KM*KS*KN \]
The formula shows that the higher the coefficients, the higher the price of the policy and the lower our discount.
The meaning of the abbreviations is given in the table below:
| Abbreviation | Decoding |
| TB | Basic tariff (approved by the legislation of the Russian Federation) |
| CT | Regional coefficient |
| KBM | Malus bonus coefficient |
| PIC | Driving experience coefficient |
| KO | Number of persons allowed to drive a vehicle |
| KM | Car engine power |
| KS | Validity period of the car license agreement |
| KN | Number of violations |
Useful tips when applying for a policy
- Now many insurers sell additional contracts. You should know that every policyholder has the right to buy compulsory motor liability insurance without any other insurance products.
- It is also possible to issue an insurance contract for a period of use of 3 months or more. In this case, the cost will be 50% of the total contract amount. At the end of this period, a person can renew his insurance.
- When concluding an agreement, you can make one list of persons admitted to management. And then add to it, or exclude someone.
- If the car is more than three years old, then a technical inspection is a mandatory requirement. However, its term may expire the next day. The main thing is that it is in effect at the time of purchase of MTPL.
- A person has the right to choose the insurance company with which he wants to sign a contract.
To calculate the cost of compulsory motor liability insurance, several factors are taken into account. The age of the driver and his driving experience significantly affect the price of insurance. Therefore, if a young driver does not drive, then you should not just include him in the policy.
If the need arises, you can add to the list of persons admitted to management at any time during the term of the agreement. If any violations arise, you can contact the RSA to resolve the problem situation. The central bank is also the supervisory authority of insurers.
How is FAC calculated?
FAC is easy to calculate. To find out what its value will be, the driver concluding an insurance contract just needs to look at a special table. It contains the values of length of service and age. The number at the intersection of the required quantities will be the KVS value.
When two or more drivers drive a vehicle, they are all included in the insurance. Their total number can reach 5 people. In this case, the determination of the PIC is carried out based on the data of the youngest and most inexperienced of them. Information about driving experience is taken from the driver's license. The date of receipt of a license to drive a vehicle of a certain category is taken into account for the calculation.
We hope that our article has helped you understand what the KVS is in the compulsory insurance policy, how it is calculated and what it affects. This knowledge will help you feel more confident when communicating with insurance company employees and clearly understand why you are paying the particular amount of insurance premium.
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How much can you save on FAC and KBM?
As already noted, the age and length of service factor can only increase the price of a car license. Because of it, young drivers with little experience are forced to pay more than older drivers. This is how insurers try to protect themselves from unnecessary payments for road accidents, although statistics do not confirm the fact that lack of experience affects the occurrence of accidents.
The entire formula contains only one component that can reduce the price of insurance. We are talking about the malus bonus coefficient, which is calculated depending on how many collisions the car was involved in during the insurance period. The maximum discount for this parameter is 50%, which is equivalent to driver class 13 and KBM = 0.5. You can receive such an incentive after 10 years of accident-free driving. However, the vast majority of motorists receive class 10 and a 35% discount.
Participation in an accident increases the malus bonus coefficient and, accordingly, increases the price of the policy. Newcomers who have not previously had compulsory motor liability insurance are assigned a KBM equal to one, which does not change the cost of the motor vehicle license. Class “M” is considered the worst option, since its owner pays 2.45 times more for insurance.
It is important to remember that the coefficient is not tied to a specific vehicle, but to each of the drivers who drive it. If several people are included in the policy at once, then the highest (i.e., worst) indicator is entered into the formula. When registering for an unlimited type of compulsory motor liability insurance, the KBM is calculated according to the owner of the car.
If a person decides to buy a new car, the malus bonus coefficient does not change. When calculating the policy for the same driver, the KBM will also be applied.
The picture leads to the corresponding article
How is driving experience calculated?
It is generally accepted that driving experience is officially calculated from the moment the driver's license is issued, which is not entirely correct. The fact is that a driver’s license contains both categories for driving certain types of vehicles, as well as subcategories.
Each category and subcategory must be opened by first completing training. Each category has its own driving experience, since they represent completely different vehicles, the driving experience of which is incorrect to add together. That is, driving experience is calculated separately for each category of driver’s license from the moment it was opened.
For subcategories, it’s a different matter - they count the length of service that corresponds to the main category of the driver’s license. If the driver initially drove a car, and then decided to switch to a motorcycle, then his experience and KBM (bonus-malus coefficient) will be calculated anew from the moment the category for a motorcycle is opened.
