OSAGO policy: how it works and coverage scope

The OSAGO insurance policy, which many drivers simply call "auto civil liability", makes it possible to shift the financial burden of compensating for damage from the one who caused the accident to the insurance company where this policy was issued. In other words, the driver found to be at fault can stop worrying about repairing someone else's car and focus on restoring their own vehicle, if they do not have a CASCO policy. However, there are exceptions to this rule.

OSAGO payments are made within the limits approved at the state level. Currently, they are as follows:

  • UAH 130,000 — the maximum amount of compensation for damage to property;
  • UAH 260,000 — the maximum payment for treatment of victims if there are injured people in the accident.

If this money is not enough to fully cover all losses, the difference will have to be paid out of pocket by the very person at fault. To protect yourself from such unexpected expenses, insurance companies offer to purchase an additional DGO policy. Thanks to it, the amount of insurance coverage can increase to UAH 1 million. Given the current prices for car service services, the cost of such a contract looks quite insignificant and hardly burdens the budget.

The importance of auto civil liability can be formulated as follows: for the injured party, the OSAGO policy guarantees compensation for the damage caused in accordance with the law "On Compulsory Insurance of Civil Liability of Vehicle Owners". And the person at fault in the accident, in turn, is relieved of the need to independently compensate for the damage.

Drivers who decide to get behind the wheel without a valid OSAGO policy or with an expired document face a fine of up to UAH 850. Sometimes this amount is comparable to the cost of the insurance itself, so saving on auto civil liability is simply unprofitable and pointless.

You can read more about what OSAGO is on the hotline.finance service.

What affects the cost of OSAGO

The final price of the insurance policy is influenced by several key parameters:

  • vehicle category (passenger car, truck, motorcycle, moped, or electric vehicle);
  • engine size (except for electric cars);
  • the city where the vehicle owner is registered.

You can adjust the price in one direction or another by including a deductible in the contract — this is a certain amount that the company does not cover, and it will have to be paid by the policyholder themselves. If you agree to a deductible, the base price of the policy will decrease, but it is worth remembering that the amount of possible compensation in the event of an insured event will also become smaller.

Ways to save on OSAGO

In the context of constantly rising prices for all services, the issue of saving on compulsory insurance becomes especially relevant.

The first and most obvious step is to refuse a paper policy and visits to the insurance company's office. By applying for OSAGO online, you can immediately save about 10% of the cost, since the price of the paper form already includes the agent's commission, which you simply will not pay. In addition, drivers get the opportunity not to limit themselves to one insurance company, but to see the whole picture of offers on the market. By comparing different programs and their conditions, it is easy to choose a policy that suits both in price and in the set of options.

Electronic registration of insurance has other advantages, among which it is worth highlighting:

  • convenience and speed — you can buy a policy right from home, without spending time on trips;
  • ease of storage — the current policy is always at hand on your smartphone, in the "Diia" app, and there is no need to print it;
  • ease of verification — you can confirm the availability of insurance when stopped by the police from any device. Also, OSAGO data is available through the database of the Motor Transport Insurance Bureau of Ukraine, and any driver can send a request to this centralized and open system;
  • transaction reliability — information about the contract automatically enters the MTSBU register immediately after its registration, which completely eliminates the possibility of forgery. In the case of paper policies, fake forms are still found.