OSAGO in installments - is it possible to obtain OSAGO insurance with installment payment?

Not all drivers are able to take out the mandatory MTPL insurance package, immediately paying the entire required amount for insurance for the whole year. This could be due to many reasons.

Insurance companies usually accommodate their clients halfway and offer favorable offers for payment of insurance policies.

Therefore, now more than ever, installment payment is relevant and legally provided for, and the minimum insurance period is 3 months. Installment plans can be arranged, but there are some nuances.

What is OSAGO insurance?

OSAGO, that is, compulsory motor third party liability insurance, guarantees compensation for damage caused by motorists to third parties. It is at the expense of the insurance company that the victim is compensated for the costs of restoring the car, as well as for treatment, but not more than the maximum amounts:

• 400 thousand rubles – for damage to property;
• 500 thousand rubles – for harm to life and health.

It should be borne in mind that this insurance does not cover the property of the person responsible for the accident, but it allows compensation for the expenses of the victim.

This type of insurance is regulated by the federal law of the same name, which stipulates all aspects of its use.

The MTPL policy is valid for one year, after which it must be purchased again. Lack of valid insurance or driving without a policy, according to the law, entails administrative liability in the amount of 500 or 800 rubles. In addition, without MTPL insurance, a motorist will not be able to register the car with the traffic police.

What are the consequences of violating the payment regime?

Late payment of seasonal compulsory motor liability insurance leads to the suspension of the insurance period. In such conditions, operation of the vehicle is considered illegal. If you drive with invalid insurance, then when the car is stopped by a traffic police inspector, you will have to pay a fine of 500 rubles.

Another negative point is that late payment allows the insurance company to refuse to automatically renew the policy to the client. In such a situation, the car owner will have to draw up a new agreement, paying at least 50% of the cost for it. Even if, under the previous agreement, he did not pay an additional 5% of the OSAGO price.

Cost of OSAGO policy

To calculate the insurance payment, a special formula is provided, which is established by the Central Bank of Russia:

T = TB x CT x KBM x KVS x KO x KM x KS x KN.

As you can see, the cost of the policy is influenced by many factors that should be understood. So, the first coefficient is TB, the basic tariff. It depends on the type of vehicle and who owns it. So, for cars owned by individuals, it is 2746-4942 rubles.

The second coefficient - CT - indicates the territory in which the vehicle will be operated. Depending on the region, its size ranges from 0.6 to 2.1. The bonus-malus coefficient (BMR) characterizes the driver’s experience and his lack of insurance claims. The digital value of the indicator is determined using a special table and ranges from 0.5 to 2.45. KVS means the age and experience of the driver. Its values ​​are set from 0.96 to 1.87. KO - depends on the number of persons allowed to operate the machine. The KM indicator is influenced by the technical parameters of the car engine. KS is the period of active operation of the vehicle. Well, the last indicator, which is equal to 1.5, is used only in exceptional cases - if the driver deliberately distorts or provides false information to the insurer.

Is it possible to pay for compulsory motor insurance in installments?

Many motorists are interested in the question of whether compulsory motor insurance can be paid in installments. It should be noted that current legislation provides for the issuance of an insurance contract for 1 year, subject to full one-time payment. That is, the law on compulsory motor liability insurance does not talk about any installment payments. However, insurers were still able to find a way out of the situation and provide motorists with the opportunity to conclude an insurance contract for 3 months with the possibility of extension. Moreover, during each extension of its validity period, the policyholder will make a payment based on the planned period of operation of the car. Thus, this payment scheme is essentially an installment plan, but with a different name.

To understand this, a motorist should distinguish between two concepts:

1. The validity period of the policy is unchanged and equal to one year, as required by law.
2. The period of operation of the vehicle is the period of time during which the driver plans to use the vehicle for his own purposes. This is where the opportunity to reduce your one-time insurance payment lies.

So, in Art. 16 of the federal law provides for the opportunity to pay for insurance of vehicles that are owned by the client and which he plans to use for a limited period (from 3 months per year), taking into account reducing factors.

In order to obtain such insurance, a citizen should notify the insurer about this when applying for a policy.

The cost of compulsory motor liability insurance in installments

The cost of a seasonal MTPL policy depends on the period for which the insurance is issued. When calculating payments, insurers use the following coefficients:

In other words, if the client plans to use his car for 4 months, the cost of insurance for him will be 60% of the original policy price.
This means that during this period the driver can safely drive his car and will not be fined for it. If a motorist needs to renew his insurance, he must contact the insurer before the policy period expires. If he does not have time to do this, he will have to pay an additional 90% of the cost of insurance instead of 40%. That is, if the driver manages to renew the insurance before it expires, he only needs to pay the difference between the original cost and the previous payment. If he doesn’t have time, the payment is calculated according to the table, as when initially contacting the insurer.

How to pay

The methods for making the first and subsequent premiums for an insurance policy vary. Payment can be made through the insurer's cash desk directly in its office. Also, it is almost always possible for legal entities and individuals to conduct transactions between the accounts of two parties. Today, preference is increasingly given to electronic payments (on the insurance company website, using electronic wallets or terminals, through an online bank).

We invite you to familiarize yourself with: OSAGO and CASCO policies, the difference

In this case, payments under compulsory motor liability insurance will occur in the following order:

• first payment – ​​50% of the original cost;
• second – 20%;
• third – 25%;
• fourth – 5%.

It turns out that, having paid only half the cost at the beginning of the period, the car owner can operate the car throughout the entire period, without forgetting to pay the remaining amount in small payments.

Where can you apply for compulsory motor liability insurance in installments?

An MTPL policy can be purchased from any insurance company. The amount of payment is calculated by insurers using the above formula, and the cost of insurance may differ depending on the size of the base tariff. Large insurers when calculating use the minimum indicator established for individuals who own cars in the range from 2746-4942 rubles.

In addition, insurers may provide various discounts or, on the contrary, include additional services in the cost of the policy that significantly increase its price.

We bring to your attention a table that shows the most popular insurance companies and the benefits that you can get when taking out a policy with them:

Pay extra for installments

Installment plans are not free. Many insurers will require an additional fee for the option of not paying for the policy right away. For example, Ingosstrakh, with an installment plan of 12 months, increases the cost of the policy by 5%.

But you can find offers without increasing the price. “We do not apply an increasing coefficient for installment plans for comprehensive insurance,” said the PR service of Mafin, which in July launched the option of online registration of a comprehensive insurance policy in installments.

Although the company does not rule out that the increasing coefficient will be introduced later, because it is present in Absolute Insurance, whose policies are sold by Mafin - 5%.

For now, motorists can choose to pay the policy monthly for a year or in two equal payments up to three months after purchase.

“We see a growing trend in customer demand for this payment method, provoked, among other things, by the pandemic situation,” explains Mafin Deputy General Director Elena Perfilieva.

What is the procedure for obtaining compulsory motor liability insurance in installments?

To obtain a policy, a motorist should contact the insurance company with a complete package of documents. Typically it includes:

• passport of the vehicle owner and policyholder;
• registration certificate for the car;
• car registration certificate;
• driver license;
• diagnostic card (if the car is older than 3 years).

Based on the data received, the insurer calculates the cost of payment. In addition, an employee of the insurance company must inspect the car to find out its actual technical condition. For this reason, drivers should prepare their vehicle before visiting the insurance company. However, it should be noted that some insurers omit this procedure.

If the insurance conditions suit the client, he signs the contract and pays the payment.

How to apply for compulsory motor liability insurance in installments online

Most insurers today provide the opportunity to issue a policy via the Internet. The entire procedure is carried out remotely on the official website of the insurer.

As a rule, to obtain insurance, you first need to register in your personal account, then go to the page to calculate the cost of the policy. Here you should indicate in the appropriate fields:

• passport details of the policyholder and the owner of the car;
• the city in which the owner of the car lives;
• details of the technical passport and car registration certificate;
• driver's license details;
• diagnostic card number;
• technical data of the car.

In addition, the driver must scan all required documents and attach them in the appropriate places in the online application.

If the payment amount is suitable for the client, he pays it. The contract itself is sent to him by email.

It should be borne in mind that MTPL insurance on credit can only be renewed at the office of the insurance company. Therefore, it is better to draw up a contract with the insurer whose branches are in the city of residence of the policyholder.

How is insurance calculated?

When calculating insurance, the following factors are taken into account:

• for what period does the agreement apply?
• what amounts are provided for insurance (each insurance service is considered separately);
• tariff rates that are currently in effect in the insurance company (you will learn about the basic tariffs and coefficients that form the basis of compulsory motor liability insurance, and how to check and calculate them in a separate article);
• various additives and discounts (how are discounts calculated based on driving experience?);
• insurance premiums (it all depends on the terms of the insurance contract).

REFERENCE! The insurance premium also takes into account factors such as the area where the car is used, benefits, characteristics of the car, period of use and the number of drivers included in the insurance policy.

Calculation of the cost of compulsory motor liability insurance when applying in installments

It’s not difficult to calculate how much a motorist’s policy will cost – you just need to fill out all the fields in the online calculator on the insurer’s website, and then multiply the result by the appropriate coefficient. For example, if the full cost of insurance is 3,700 rubles, and the client wants the policy to be valid for 3 months of using the car, then his payment will be exactly half - 1,850 rubles.

If the motorist wants to renew the policy, it is necessary to contact the same insurer in advance and pay the remaining 1,850 rubles. After which the insurance will be valid for 1 year from the date of initial application.

Nuances when purchasing compulsory motor third party liability insurance in installments

When purchasing a policy in installments, a motorist should consider the following points:

• to avoid overpayment, the policyholder needs to contact the company in advance, within the time limits established by the contract;
• only the person who executed it can extend the term of the contract;
• when applying for a renewal, an employee of the insurance company must inspect the car;
• the contract can be extended only three times - for example, twice for 3 months and once for six months.