New rules for compulsory motor insurance: what will change in 2025 and what drivers can expect
19 December 2024 13:48
On January 1, 2025, new rules for compulsory motor third-party liability insurance (MTPL) will come into force in Ukraine. These changes, in line with European standards, will affect both the amount of insurance payments and the cost of policies. In particular, insurance payments will increase, direct settlement will become mandatory, and insurance companies will be free to set tariffs. Read more in "Komersant Ukrainian".
The main changes in MTPL insurance
Increase in insurance payment limits
Starting from 2025, the maximum compensation amounts will increase:
- For compensation for property damage – up to UAH 250 thousand per victim (UAH 1.25 million per event).
- For compensation for health damage – up to UAH 500 thousand per victim (UAH 5 million per event).
In 2026 (or after martial law is lifted), the limits will increase even further:
- For property damage – up to UAH 2 million per event.
- For damage to life and health – up to UAH 1 million per victim and UAH 20 million per event.
Direct settlement of losses
If the driver is not at fault, his or her losses will be reimbursed by the insurance company with which the policy is concluded. The insurers will collect the funds from the company of the person responsible for the accident. Currently, this option is available only as an additional service, but it will become a basic one starting in 2025.
Cancellation of the deductible
The deductible, i.e. the portion of losses that the culprit covers on their own, will no longer apply.
Free pricing
The cost of policies will be determined by insurance companies themselves at individual rates. They will take into account factors such as the driver’s age and experience, accident history, type and age of the car, place of registration, etc.
Why is the price of CTPCI rising?
The market predicts that the average cost of policies will increase by 2-2.5 times starting in 2025. If today the MTPL insurance for a car with a small engine in Kyiv costs about UAH 2.2 thousand, in 2025 the amount may be from UAH 4.4 thousand to 5.5 thousand.
The main reasons for the rise in price:
- Increasedcosts of car repairs due to inflation and higher prices for spare parts and repairs.
- A 20%increase in thenumber of road accidents due to more intensive use of transport.
- Lack of government regulation of tariffs: insurance companies will independently take into account the risks of each driver.
Benefits remain
For privileged categories, including combatants, people with disabilities of 1-2 groups and participants of the Revolution of Dignity, the discount on the policy will remain at 50%.
What do the innovations mean for drivers?
The new CMTPL rules make the insurance system more transparent and efficient. At the same time, the increase in policy prices will encourage accident-free driving, as accident-free drivers will receive significant discounts.
Raising insurance payments to the European level will help cover the real costs of car repairs and treatment of victims. This will contribute to a more responsible attitude to insurance among Ukrainians.
