MTPL insurance for cars - how to get it
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Why is so much attention paid to insurance? Why is it needed and when is it necessary to insure a car? These questions are increasingly being asked by those new to driving. It is important to understand that before you get behind the wheel, you must first take out an MTPL insurance policy. Failure to comply with the rules entails administrative liability. If you want to learn all the intricacies of how insurance works, as well as the conditions for obtaining it, then read the information provided.
Why do you need insurance?
As we have already said in the definition of compulsory motor liability insurance, this type of insurance implies compensation for material damage caused to all participants in an accident that occurred through your fault. Due to the fact that insurance is mandatory and strictly controlled by authorized bodies, this makes it possible to prevent the culprit of an accident from hiding from the scene of the accident, as well as to compensate the victims for damages, because not everyone has such a financial opportunity, and anything can be the cause of the accident. That is, the insurance company will cover all costs within the limits (up to 500,000 rubles).
Difference from CASCO
Before the introduction of compulsory motor liability insurance, road accidents often ended in litigation. With the introduction of compulsory insurance, road proceedings were streamlined within the framework of insurance companies.
If we talk about compulsory motor liability insurance, then this is:
- You cannot drive a car without an MTPL policy.
- The policy is valid throughout the life of the vehicle.
- The validity of the policy must be permanent; after the expiration of the validity period, it must be renewed.
- The policy is intended for a car and insures motor third party liability.
If we talk about CASCO, then:
- Voluntary insurance.
- The owner himself chooses the degree of protection.
- Under CASCO insurance, the car is insured against theft, arson, theft, and damage.
- CASCO varies depending on the wishes of the insurer. Does he want to insure his car against falling icicles or theft?
Other differences between CASCO and OSAGO include:
- OSAGO is compulsory insurance, and CASCO is voluntary.
- Tariffs and payments for compulsory motor liability insurance are determined and prescribed by law, but in the case of CASCO, each insurer determines its own conditions.
- Under CASCO insurance, the insurer may refuse to apply for it, unlike compulsory motor liability insurance.
- If the CASCO owner is at fault for an accident, the insurance company will pay the owner’s damages regardless of guilt.
Who needs car insurance
All drivers who are allowed to drive a vehicle need to be insured. If a person gets behind the wheel, then he can already become a reason for an accident and damage to other road users. Even if you do not personally own a car, this does not relieve you of responsibility. If you drive a certain car, you must be included in the insurance. Violation of the established rules may result in administrative liability. In addition, the absence of an MTPL insurance policy does not give you the opportunity to register your car.
Is this necessary or not?
So, is it necessary to insure a car under compulsory motor liability insurance and what kind of car insurance is required? To protect the rights of victims in a traffic accident to compensate for the harm that was caused to their life, health or property, the legal basis for compulsory motor third party liability insurance or, as compulsory car insurance is also called, compulsory motor liability insurance, is formed. The aspect of MTPL as compulsory car insurance is indicated by regulations.
- Art. 3 of the Federal Law of April 25, 2002 N 40-FZ (as amended on July 26, 2017) “On compulsory insurance of civil liability of vehicle owners”, among the basic principles of compulsory insurance, highlights: the inadmissibility of using a vehicle on the territory of the Russian Federation whose owners have not fulfilled their obligation to insurance of your auto liability.
- And also in Art. 4 of this legislative act describes the obligation of drivers to obtain third-party liability insurance.
- In accordance with part 2 of Art. 4 of Federal Law No. 40 - every driver is required to insure his civil liability.
- Part 3 of the Federal Law under consideration also excludes a certain range of vehicles that are not covered by this Federal Law, including: low-speed vehicles (no more than 20 km/h), vehicles of the Armed Forces of the Russian Federation, vehicles of foreign countries, etc.
The MTPL policy is one of the main documents of the driver, which he must have with him and, if necessary, present to the inspector for inspection.
The policy is a civil liability document that the driver must purchase before the vehicle registration period, but no later than 10 days from the date of acquisition of ownership. The MTPL policy is mandatory for the driver, unlike CASCO.
Clause 2.1.1 of Article 2 of the Traffic Regulations directly indicates that the driver must have an MTPL policy.
Sometimes, due to the driver’s carelessness, the policy may be expired or not issued again, or forgotten at home or at work. In this case, the driver may face punishment in accordance with the Code of Administrative Offences. This issue is regulated by the Code of Administrative Offenses of the Russian Federation.
What is needed to apply for a policy?
If you have never taken out insurance before, then read the mandatory list of documents that you will need to present to the insurance company:
- passport;
- vehicle registration certificate;
- certificate of registration of the vehicle;
- driver's license;
- diagnostic card - the result of a vehicle inspection if it is more than 3 years old.
If the car will be driven by other people, then you will need to additionally provide their driver's licenses.
All listed documents are submitted in originals and copies. The list provided is comprehensive, regardless of which insurance company you choose to obtain insurance from. If you want to take out an insurance policy to drive a car that is owned by another person, then a power of attorney or personal presence will be required on his behalf.
What is Direct Claims Settlement?
In the event of an insured event, the injured party has the right to contact the insurance company where he has a valid policy.
The possibility of direct settlement of losses is provided exclusively:
- in case of damage to property as a result of an accident, there are no victims;
- There are two vehicles in a traffic accident, the owners of which have compulsory motor liability insurance policies.
However, there are restrictions related to the guilt of both drivers; the accident did not involve a collision of vehicles.
Procedure
Today, compulsory motor liability insurance can be issued in two ways: via the Internet or in person by contacting a branch of the insurance company. Check out the features of each option and choose the one that suits you.
Online
Thanks to legislative innovations that came into force in 2015, all policyholders now have the opportunity to issue an insurance policy via the Internet. How to do it:
- Decide with the insurance company.
- Go to her official website.
- Select the section – “Individuals”, “MTPL”.
- The system will ask you to register.
- After registration, you click “OSAGO online” and proceed to filling out the application.
- You will be required to correctly enter the information in all the fields provided, after which the OSAGO insurance amount will appear on the screen, if it suits you, you click “Apply”.
When applying online, you will also need documents, so scan them in advance so that when you fill out the application, you can support them electronically and send them along with the application form.
Next, the application goes for verification. In a few minutes you will know the answer. If you did everything correctly, the system will offer you one of the convenient payment methods. Typically, policyholders use a bank card for these purposes. After payment, an insurance policy will be sent to your email address. To present it to the traffic police officer, all you have to do is print it out, and it can be in black and white. The electronic policy does not require any certification, since all the information necessary for it is reflected in the unified RSA database.
At the office of the insurance company
Some drivers do not trust the Internet and choose the usual way of obtaining insurance - visiting the insurance company in person. So, what will you need? First, decide on the insurance company and choose the nearest branch for yourself. At a convenient time, visit the company’s office with a full package of documents. If there is no queue, then you will be able to get compulsory motor insurance in an hour. Payment is made both in cash and non-cash form. The result of registration will be a valid insurance policy. The advantage of this option is the opportunity to first consult with the manager and ask him all your questions.
Cost of insurance
How much does OSAGO cost today? The methodology for calculating the cost of a policy is the same for all companies and is fixed in law (Federal Law No. 40). Its size depends on the base rate for a particular vehicle, and what value the insurance company will take when calculating. The limits of the basic tariff are set by the Central Bank, and you cannot go beyond them. Periodically, the Central Bank changes the size of the base rate, so stay tuned for the latest information. Next, the size of the basic tariff is influenced by the personal data of each driver and his vehicle, on the basis of which the level of risk is calculated: the greater the risk of an accident, the higher the price of compulsory motor insurance.
So, the general formula for calculating insurance is as follows:
Price = BT * CT * KVS * KO * KM * KBM * KS * KN, where:
- BT – the size of the basic tariff;
- CT – coefficient for the region of registration;
- KVS – driver’s age and experience;
- KO - how many people are allowed to drive a car;
- KM – machine power;
- KBM – bonus-malus coefficient (discount for accident-free driving);
- KS – insurance period coefficient;
- KN – coefficient of violations.
For experienced drivers, the price of insurance is usually several times lower and the coefficients are lower. However, if you want to add another driver to the policy, then the calculation will be made based on the highest indicators.
How to calculate the cost
It is quite difficult to calculate the cost of insurance yourself using the above formula. For this purpose, it is better to contact the company’s office and ask an expert to calculate it or use the online calculator on the company’s website. The second option is more convenient and faster. To calculate the cost of compulsory motor liability insurance, you will need to enter data on the following points into the calculator:
- region of registration;
- type of vehicle;
- engine power;
- year of manufacture and make of the car;
- age and length of service of the driver;
- the period for which the policy is issued;
- limited or unlimited access.
After filling out all the fields, you just have to click “Calculate”. The program will automatically apply the bonus-malus coefficient (BMC) and the violation coefficient (CN) to the resulting value. Data for all drivers is stored in a single RSA database. The use of such indicators will reduce the cost of insurance or make it more expensive (if you drove your car irresponsibly in the past period).
What benefits does the policy give the car owner, and what does it protect against?
The list of insurance cases under CASCO is quite wide. Risks are divided into basic and additional.
Risk of theft
If a car is stolen and law enforcement agencies search for it unsuccessfully, the insurance covers its value, which is indicated in the policy.
Total Damage
If the car is completely destroyed as a result of the actions of third parties, an accident or other factors, the insurance company pays the entire cost of the car.
Minor scratches
Small scratches and damage, oddly enough, can require quite expensive repairs.
Several similar works can cost equal to the annual price of the policy.
Another popular risk is the loss of the car’s presentation after repair work.
In this case, the policy owner is also entitled to compensation.
Broken, cracked and chipped windshield
Quite often insurance cases are related to the windshield. It may crack, chip, or break.
In this case, replacement and repairs occur at the expense of the insurer.
Parking related damage
The car can be damaged not only while driving, but also when parking.
The procedure for processing payments in this case will depend on the time of day and the specific location of the incident.
Natural disasters
Natural disasters that can damage a car, and in which a CASCO payment is due, usually include hail, storms, hurricanes, floods, earthquakes, and so on.
For example, there are often cases when hail leaves large marks on the body, and strong winds cause a tree to fall on the car.
Damage caused by third parties
Payments are also due if the car was damaged as a result of illegal actions of third parties, if it was scratched, splashed with paint, or received dents.
This also includes cases where the car was damaged during an attempt to steal or steal it.
Fire protection
CASCO includes insurance in case of fire, arson, explosion near a parking place, or a natural disaster that leads to a car fire.
As for a fire resulting from an electrical short circuit, not all insurance companies make payments in this case.
The reason for the failure may be that problems with the electrical wiring arose due to the fault of the car owner.
Payment for repairs when objects/trees fall on the roof
If a tree, icicles or other objects fall on the roof of a car, causing damage to it, the driver is also entitled to compensation.
Cases where payments are not due are specified in the contract.
How to choose an insurance company
Regardless of how you decide to get insurance - in the company’s office or online, you first need to decide on the insurance company. Today, there are a large number of insurers on the insurance market that deal with compulsory motor liability insurance. However, it is very important to choose a reliable organization that, in addition to its solvency, qualitatively fulfills its obligations to the client. So, what to look for when choosing an insurance company:
- place in the expert rating;
- how quickly insurance payments are made;
- what is the maximum amount of insurance payments;
- how long has it existed in this area;
- size of the customer base.
All these factors will determine the reliability of the insurance company, but if you want not only to be confident in the stability of the organization, but also to be comfortably served, then pay attention to the following criteria:
- insurance cost;
- where is the nearest office;
- How is customer support provided?
- special offers for new customers and additional discounts.
Among other things, study reviews from regular customers about the work of the selected insurance company. Very often, people indicate the main complaints that force them to subsequently change their service company. It’s good if this is the opinion of your friends. If there are none, then it is best to turn to forums or groups on social networks, since not all written reviews on the Internet are reliable, especially those presented on the company’s website.
