From January 1, 2025, a new law on third-party liability insurance came into force in Ukraine, which caused a sharp increase in the price of a compulsory third-party liability insurance policy. Policy prices increased by an average of 70-100%, which became an important factor for vehicle owners. The cost of third-party liability insurance for passenger cars with an engine capacity of up to 1600 cubic centimeters now ranges from UAH 2,200 to UAH 5,600, depending on a number of factors.
One of the main reasons for the price increase was the entry into force of a new law that increases the maximum amounts of insurance payments. In particular, the maximum amount of payment for car repairs has increased from UAH 160,000 to UAH 250,000, and for the treatment of victims of road accidents - from UAH 320,000 to UAH 500,000. This means that insurance companies will have to pay larger amounts in the event of insured events, which, in turn, leads to an increase in the cost of policies.
In addition, under the new rules, insurers have gained greater freedom in market segmentation. They can more precisely adjust policy prices, taking into account various factors such as the type of vehicle, its engine capacity, the place of registration of the car, as well as the age and experience of the driver. This allows them to set individual prices for different categories of drivers and cars.
Factors that affect the cost of a civilian car
The cost of a motor vehicle insurance policy is influenced by several main factors:
- Type of vehicle - passenger car, electric car, truck, bus, etc.
- Engine size and load capacity - prices can vary significantly for different types of vehicles.
- Scope of use - if the vehicle is used to provide paid services (for example, a taxi), this also increases the cost of the policy.
- Region of operation - in cities with high traffic intensity, such as Kyiv, premiums may be higher than in smaller cities or rural areas.
- Driver's age and experience - for drivers with more experience, the price can be significantly lower than for younger drivers who are just starting their driving career.
According to a survey of insurers, the price of a policy is most affected by the driver's age. For example, a 45-50-year-old driver will pay significantly less for the same make of car in Kyiv than an 18-year-old driver. Given that insurance companies can now more actively apply this factor, for younger drivers who have just received their licenses, the cost of the policy may be significantly higher, which will be an additional financial burden.
There is no single price for a civil insurance policy, since each insurance company independently determines the cost of its policy. Thus, the cost of a civil insurance policy for passenger cars with an engine capacity of up to 1600 cc can range from 2.2 to 5.6 thousand UAH, depending on the company and other factors. In some cases, the price may be higher or lower depending on the driver's age, the region of registration of the vehicle, or other parameters.
For example, one of the companies offers policies for motorcycles for 500 UAH, while the cost of a policy for buses registered in Kyiv can reach 50 thousand UAH.
The increase in civil motor vehicle prices will be a significant financial burden for vehicle owners, especially in large cities with high levels of traffic. For some categories of drivers, in particular young and novice drivers, these changes may result in additional costs for purchasing compulsory insurance. However, given the new insurance benefits, drivers may also be better protected in the event of an accident, which may ultimately justify the cost of a more expensive policy.
