The cost of auto liability insurance has almost doubled.
The Motor (Transport) Insurance Bureau of Ukraine (MTIBU) explains the reason for the price increase as follows: "We recommended that member companies of the bureau (more than 63 companies licensed for insurance) raise the price of the insurance policy due to the fall of the hryvnia against the euro and the dollar. Basically, calculations for supplied spare parts, especially for foreign cars, are made in these currencies. Accordingly, the cost of repairs in the event of an accident also increases."
After the increase in the cost of repair work, companies' expenses for insurance payments also grew. Insurance companies began to approach the profitability threshold (at least, they claim so). Therefore, it was decided to increase the amount of insurance premiums.
As representatives of many insurance companies explain, when calculating the price of the policy, the base payment (currently 180 hryvnias) and increasing coefficients are taken as a basis. Their value depends on the engine displacement, the place of registration of the vehicle, and the driver's experience. For example, cars registered in Kyiv have a coefficient of 4.8, while in a district center it is 1.6; the driver's experience coefficient can vary from 1.35 to 1.76.
Currently, companies use maximum coefficients, hence the increase in the cost of insurance.
For example, we can analyze the cost of an insurance policy for a car with an engine displacement of 1.5 liters. If for a car registered in Kyiv the policy previously cost 777 hryvnias, now its cost increases to 1520 hryvnias. In some district center, say, in the Sumy region, the price was initially 243 hryvnias, and now it is 507 hryvnias.
