Prices for mandatory insurance policies for civil liability of owners of land transport vehicles ("auto liability", OSAGO) have increased on average by 70% to 100% following the enactment of a new law effective January 1, 2025, according to a survey conducted by the information agency "Interfax-Ukraine" among leading insurance companies in this market.
According to Elena Mashara, advisor to the chairman of the board of NASC "Oranta," the cost of "auto liability" has risen by an average of 80-90% compared to the previous year, both within the company and across the market. However, if we consider policies with zero deductibles, the increase in insurance premiums is approximately 50%.
She emphasized that this growth is not uniform, as insurers now have the opportunity to segment the market more flexibly and in greater detail than before, when price regulation was in place. For instance, in "Oranta," the loss ratio for OSAGO contracts concluded for electric vehicles was several times higher than for other types of vehicles. As a result, the increase in insurance premiums for this segment is more significant than for other types of transport.
At the European Insurance Alliance, the cost of "auto liability" has increased by 70% to 110% and is determined based on the type of car and the place of registration (residence) of the vehicle owner, noted Vitaliy Bazik, head of the motor risk product management department at the company.
In VUSO, this increase amounted to 80-100%, attributed to significant changes in insurance conditions, particularly a substantial increase in insurance limits for payouts to victims.
"The new limits allow us to provide our clients with significantly greater protection in the event of an accident, covering losses that previously could exceed the limits of the previous coverage amount," the company stated.
Meanwhile, Express Insurance reported that the average cost of their OSAGO policies has risen by 70-75%, which is due to new legislative requirements that include increasing insurance amounts for life and health—from 320,000 to 500,000 UAH, and for property—from 160,000 UAH to 250,000 UAH, as well as the removal of depreciation considerations for car repairs, deductibles, and limits under the European protocol.
According to ARX, comparing the prices of the old "auto liability" (before the legislative update – IF-U) with the new one is pointless as they are completely different products in terms of content. It's like comparing a sleeper train to an airplane, as the settlement conditions have changed; reimbursement for parts and components of the vehicle will be made without deducting depreciation, and all participating insurers must join direct settlement, the company explains. Additionally, the insurer clarified that the overall cost of its policy ranges between 3,500 and 6,000 UAH, depending on the driver's age and vehicle type, as well as the registration region.
Regarding the average price for this insurance, in Express Insurance, for passenger cars with an engine capacity of up to 1600 cm³, the price of OSAGO policies ranges from 2,200 to 5,600 UAH.
"We will continue to analyze the cost dynamics of loss settlements and adjust rates for certain client categories as necessary," the company emphasized.
In ARX, the cost of "auto liability" for a B1 car from 1988, registered in Kyiv, with an owner aged 50-55 years is 3,243 UAH (minimum), while for a B4 car from 2020, registered in Kyiv, with an owner aged 18-22 years, it is 12,771 UAH (maximum). The average payment for policies concluded under the new conditions during the first ten days of January stands at 3,520 UAH.
According to VUSO, their average cost of an OSAGO policy currently amounts to about 4,000 UAH. The minimum price is 500 UAH for a motorcycle and 50,000 UAH for a bus registered in Kyiv.
Mashara stated that in the first days of 2025, the average cost of "auto liability" in "Oranta" was 2,375 UAH, which is slightly below the company's initial expectations.
"This is due to the fact that a new segment of clients has joined the insurance market—participants in military actions and other privileged categories of vehicle owners who previously had the right not to conclude OSAGO contracts. Until 2025, the consequences of accidents involving them were compensated from the funds of the MTSBU Victims Protection Fund, and now, according to the new law on OSAGO, such individuals must conclude insurance contracts with a 50% discount on the insurance premium," the expert noted.
She also emphasized that nearly 5,000 contracts have already been concluded with new clients, and the average cost of a privileged policy is 1,440 UAH.
In response to the question of what most influences the price, all companies noted that it is the type of vehicle (passenger car, electric car, truck, bus, etc.) and its subtype (engine capacity, load capacity), the area of use (whether paid transportation services are provided), the duration of the insurance contract, and whether the insured has a right to a discount. An important factor is the region of vehicle operation: in cities with high traffic intensity, such as Kyiv, premiums are significantly higher than in calmer regions. Furthermore, insurers have begun to actively consider the age and experience of drivers permitted to operate the vehicle and the nature of its use.
ARX added that the company has long introduced an additional coefficient.
"For example, a driver aged 45-50 will receive a completely different price than a driver aged 18, even if they have the same make of car in Kyiv," the company explained, noting that the factor of loss history (the presence of accidents) does not affect the cost of the policy.