MTPL validity period. What are the MTPL coefficients? Period of use of MTPL insurance
However, it should be remembered that the right to compensation can arise only if the obligations of the parties at the time of the insured event were valid and the car was used at the time specified in the contract. Today you will understand how to control these parameters, what liability comes for violating them and how to calculate the amount of payments.
What does the period of use of a vehicle mean in compulsory motor liability insurance?
The legal basis of compulsory motor liability insurance is defined in the Federal Law “On compulsory civil liability insurance of vehicle owners” (hereinafter referred to as TS) dated April 25, 2002 No. 40-FZ. It says that using transport means operating it while moving in all types of territories. That is, the time when the car is used for transportation will be the period of its use. The period of use must be specified in the insurance policy and may be less than the validity period of the agreement.
If equipment is installed and used in transport, the operation of which does not require being a participant in road traffic, then such a situation is not included in the concept of use.
There is also the concept of limited use of a car - when car owners indicate in the policy specific drivers who will drive it, or stipulate during what period of the year the car will be in use.
This term means that some owners:
- may be absent from the country for a long time;
- decided to sell the vehicle in the near future;
- put the car in the garage for the winter.
Please note that the period may not consist of several months in a row, but this must be written down in the contract. It should be understood that limiting the period of use allows reducing factors to be applied when determining insurance premiums. The minimum period that makes it possible to save on insurance payments is 3 months - with this period of use, the insurance payment is reduced by half. It makes sense to limit the time of use of a vehicle to 10 months, since from this point onwards no reduction factor is applied.
Important! Z Legislation does not provide for the possibility of paying insurance payments in installments, but the vehicle owner can take advantage of this nuance: during negotiations with the insurance company, indicate that the policy will be issued for a year, the period of its use will be less than a year, and after the end of this period, extend it. The period of use can be extended several times within the total validity period.
However, it is impossible to limit the period of use in the policy when in reality the vehicle moves unlimitedly. This will lead to the following consequences:
- payment of penalties;
- In the event of an accident, the insurance company will not compensate for losses and you will have to do it at your own expense.
Policy validity period
The insurance policy is issued for the period:
- For those vehicles that are temporarily used within the Russian Federation and registered in other states - for the period while the car moves through the territory of Russia (at least 5 days).
- If transport is transported by intermediaries to the place where it will be registered for the purpose of further purchase and sale, inheritance, donation - for a period of up to 20 days.
- When the car is due for technical inspection or re-inspection - up to 20 days.
- In remaining cases - up to 12 months.
Video: Validity period of the MTPL policy
Insurance calculation method
Insurance payments do not depend on the amount of payments and are calculated as follows:
SP = TB * KT * KBM * KO * KVS * KM * KPr * KS * KP * KN , Where:
- JV- insurance payment;
- TB- base rate of the insurance tariff;
- CT- insurance rate coefficient for the region in which the vehicle is primarily used;
- KBM- bonus-malus coefficient, which is assigned based on whether or not there was a payment under compulsory motor liability insurance for the previous period;
- KO- multiplier by the number of drivers;
- PIC- a coefficient that adjusts the payment for different driving experience and the number of full years of the driver;
- KM- coefficient, which is set for passenger vehicles and is determined by engine power;
- KPR- multiplier for vehicles that can travel with a trailer;
- KS- a multiplier for those who do not expect to drive a car during the entire period for which the policy is issued;
- KP- coefficient, which is determined by the duration of the policy;
- KN- an indicator that depends on how honestly the driver behaved towards insurers in the past.
The sizes of base rates and coefficients are approved by the Bank of Russia in Instructions dated December 4, 2018 No. 5000-U. Basic rates differ according to the types, categories of cars and their functions, since this determines what the damage will be as a result of an accident. The Guidelines outline the limits of their smallest and largest possible values.
The Guidelines describe the coefficient rates for various territories, cities and towns separately for tractors, self-propelled road-building and other machines, as well as other vehicles. It is believed that the area where the vehicle is primarily used is the area of registration of its owner - an individual or legal entity.
The bonus-malus coefficient is differentiated by the number of payments: 1, 2, 3 or more; as they increase, the value of the multiplier increases. If after a long period of time there have been no payments, a decreasing rate is provided. If a limited number of people can drive a car, this does not affect the amount of the insurance premium. Otherwise, it increases by 1.87 or 1.8 times.
The younger the driver and his driving license are, the higher the insurance payment will be.
Reducing rates are provided for the most experienced individuals. The car's passport, its technical registration certificate or other official data contains information about how much horsepower is used to make it move. The more there are, the larger the multiplier.
The shorter the period of use specified in the MTPL policy, the smaller the amount of insurance contributions will be due to the reducing factor. That is, if it is stated that the car will be used for 9 months a year, the amount payable will not be 100%, but 95% (reducing factor for 9 months of use, according to the Instructions of the Bank of the Russian Federation = 0.95). In case of using the vehicle for only 5 months (reducing factor = 0.65), 65% of the cost of the annual policy will be charged.
If the vehicle is planned to be used with a trailer, the insurance premium will be increased taking into account its type and category of vehicle. In the case of seasonal use of the vehicle, a reducing multiplier is applied to determine the insurance payment.
If the insurance company has discovered facts indicating that in the past you provided them with false information about the circumstances of the accident, about indicators that increased the amount of the insurance payment, overstated the amount of damage caused, or organized the accident to obtain insurance compensation, then, for the immediate period thereafter, insurance payment will be increased by 1.5 times.
Important! The amount of the insurance payment under the MTPL agreement should not exceed 3 base rates, taking into account the coefficient of preferential use of the vehicle, or 5 base rates if the fact of deception of the insurance company is recorded.
For example: determine the insurance premium for an individual - the owner of a BMW X5 (TB: 2,746–4,942 rubles), registered in Ufa (KT = 1.8), under whose insurance policy four times were registered in the previous time period (KBM = 2 ,45) payments were made. The owner was 31 years old at the time of execution of the contract, received a driver’s license 5 years ago (KVS = 1.04), plans to drive the car independently (KV = 1). The power of this modification of the vehicle is 400 horsepower (KM = 1.6). The car will be used 5 months a year (KS = 0.65), without a trailer (KPR = 1). The owner wants to sign a contract for 9 months (KP = 0.95), no facts about the provision of false information were found (KN = 1).
The payment amount will be within the following limits:
- minimum: 2,746 * 1.8 * 2.45 * 1.04 * 1 * 1.6 * 0.65 * 1 * 0.95 * 1 = 12,443.13 rubles;
- maximum: 4,942 * 1.8 * 2.45 * 1.04 * 1 * 1.6 * 0.65 * 1 * 0.95 * 1 = 22,394 rub.
Video: Calculation of compulsory motor liability insurance in 2019
Penalties
The Code of Administrative Offenses defines the following types of administrative fines in the area of non-compliance with MTPL requirements:
- If the car is used at a time that is not specified in the insurance policy, or the car was driven by drivers not approved in this document, a sanction is assigned in the amount of 500 rubles.
- If the owner of the car has not drawn up an insurance contract, but has used the car, the consequence will be a sanction in the amount of 800 rubles.
The owner of the vehicle is required to issue an MTPL policy before registering it, but before 10 days have elapsed from the date of registration of ownership.
So, an MTPL insurance policy can be issued for a time period of less than a year; the same approach can be applied when determining the period of use of a vehicle. However, do not forget about the administrative liability that arises if these deadlines are violated.
Insurance forum → Insurance agent forum → Period of use of a vehicle under compulsory motor liability insurance - can it be divided
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1 Topic by Petrov 2012-12-13 17:35:32
Topic: Period of using a vehicle under compulsory motor liability insurance - can it be divided
In the process of discussing the topic of recommendations to insurance agents “On the procedure for applying MTPL insurance rates (issuing a policy),” an interesting question arose about whether it is possible to divide the period of use of a car or other vehicle when concluding a MTPL agreement?
2 Reply from sermi 2012-12-13 12:59:45
- On the forum with 2012-12-13
- Messages: 1
Re: Period of use of a vehicle under compulsory motor liability insurance - can it be divided
Note: The period of use cannot be divided, i.e. is continuous for 3 or more months.
From personal experience, there was a situation with a “minimum” period of limited use of a vehicle “less than 3 months”.
There was a period of use of 4 months, I asked for an additional period of 1 month. (4+1 months) – instead of 1 month. they imposed 3, and even with the same coefficient as for “new” 3 months. (That is, I would pay not as for the total 7 months - 0.8, but 1.1 (0.5 + 0.6) - more than for the whole year!).
I had to go to the appellate court.
Please note that the decision of the court of first instance in my case was upheld on appeal. complaint without satisfaction only due to the fact that at the time of consideration the MTPL agreement had ceased to be valid, which excluded the possibility of introducing an additional period of use retroactively (which I understood perfectly well and did not insist on).
But I achieved the main thing - the reasoning part states that the defendant’s actions (refusal) are unlawful, and the conclusions of the trial court are unfounded. And most importantly, it is indicated: “that the provisions of Art. 16 of the Federal Law “On Compulsory Insurance of Civil Liability of Vehicle Owners” does not contain any indication of the continuity or indivisibility of the period of limited use of a vehicle during the year.”
That is, the period of “limited use” of a vehicle (3 months or more) is not continuous and indivisible, it can be specified in parts, but the duration of each individual period of use and their number are not regulated. The total period of use of the vehicle during the year (the validity period of the MTPL agreement), even 1+1+1 months, must be taken into account, as long as all the indicated periods of use of the vehicle in total amount to 3 or more months. Incomplete month usage, in this case, is rounded to the full.
And the insurance rate coefficient depending on the period of use of the vehicle (Kc) to calculate the insurance premium should be applied (take the coefficient value) based on the amount of periods of use specified in the contract (policy), which, as stated above, will always be 3 or more months in a calendar year.
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Validity period of OSAGO
The period of time during which a driver who has purchased a policy can expect to receive payment after an accident is called the validity period. On the territory of the Russian Federation, the most common period of liability insurance is 1 year. However, few people know that insurance can be purchased for a shorter period.
In this case, its cost will be reduced in proportion to the period. What is the minimum insurance period established by law? It depends on which of the three categories the car is classified into. There are only three categories:
- Cars that are used only in Russia. Such cars can be insured for a period of at least 3 months. Typically, this period is chosen by drivers who use a personal car for one season, for example, spring and summer (in order to go to the country).
- Cars with transit license plates. Insurance in this case, on the contrary, cannot be more than 20 days. It's called temporary. During this period, the driver usually removes or registers the car with the traffic police.
- Cars with permanent registration abroad. Usually these are cars of travelers from neighboring countries. They can insure the car for a period of no less than 5 and no more than 15 days. Even if the traveler plans to enter for just one day.
Validity period of the MTPL policy and period of use of the vehicle
It is worth noting that MTPL policies concluded for any period will always have a mark of 1 year. The number of months is prescribed separately and is called the period of use, which is actually the period during which the driver will use the car.
For example, a driver buys insurance for three months. He can choose a month in summer, a month in spring and a month in winter. How convenient for him. Accordingly, the insurance policy will cost less if you take it out for such short periods. However, if you compare the cost of an annual policy per month and a limited one for 3 months, then an annual one will cost less.
So, how much will the driver save if the period of use is 3 months? The coefficient will be 0.5. To see the full table of coefficients, consider Figure 1.
When concluding an insurance contract, you must always clearly monitor its validity period and expiration. The law establishes a fine of 500 rubles for an expired policy.
It is possible to extend the validity period of compulsory motor liability insurance, which is limited by periods. It is absolutely not necessary to take out a new policy every time, because, as we have already found out, this can be very unprofitable. If such a need arises, in most cases it is better to purchase a policy for the whole year at once.
A short video will tell you more about these two concepts:
Preferential month under OSAGO
Any MTPL policy tends to end someday. Many drivers believe that after the insurance period expires, it is automatically extended for another year and you can continue to drive safely, paying for the next year in the near future. Some motorists believe that after the expiration of the policy they have a “grace month”, something like a “bonus” period that the insurer provides to the driver.
You should be seriously wary of such misconceptions. The rule, according to which the validity of the policy was extended for one month in the absence of a refusal by the policyholder, was in force until 2008. Currently, after the expiration of the policy, the driver has no right to drive a car. Such a violation is subject to a fine and confiscation of numbers, and this is a very unpleasant procedure. In addition, in the event of an accident due to his own fault, the motorist will be liable with his own financial resources.
Thus, the legislation does not provide for such benefits and the driver should wisely plan the period of insurance and use of his car in advance.
OSAGO and period of use with a gap
Hello. Please tell me. I insured the car under compulsory motor liability insurance for 3 months (then I left for 2 months, the car was parked) and paid 0.5 of the annual period. The period of use has ended. I’m trying to extend it now for another 3 months, but they tell me that because... period with a gap, and I did not warn the insurance company, then I have to pay 0.5 again for 3 months. I read the law on compulsory motor liability insurance, but I couldn’t find anything like that anywhere. Is the insurance company right? As I understand it, the period of use of the thing is absolutely voluntary, you need to extend the trip. No need, don't go. Why does it turn out that for 6 months within one contract I will pay as much as for a year?
Lawyers' answers (1)
Ask your insurance company to calculate your insurance premium.
Regulations on the rules of compulsory civil liability insurance of vehicle owners, approved. Bank of Russia No. 431-P dated September 19, 2014
Chapter 2. Procedure for payment of insurance premium
The policyholder has the right to demand from the insurer a written calculation of the insurance premium payable. The insurer is obliged to submit such a calculation within three working days from the date of receipt of the corresponding written application from the policyholder.
Then, with a response from the insurance company, file a complaint with the Bank of Russia through the online reception.
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What is the period of validity of the policy and the period of insurance for compulsory motor vehicle liability insurance?
The term OSAGO means Compulsory Motor Liability Insurance. After purchasing an insurance policy, a person becomes insured against situations related to a vehicle that occur on the territory of the Russian Federation, due to which damage is caused to property, life and health of people.
For example, if you find yourself at fault for an accident and crash someone else’s car, the insurance company will pay compensation to the injured person instead of you.
In the article we will tell you for how long you can apply for compulsory motor liability insurance and whether it is worth doing it at all, and you will also find out what the period of use of a car (vehicle) is, what it is specifically in compulsory motor liability insurance and how to make a policy.
Dear readers! Our articles talk about typical ways to resolve legal issues, but each case is unique.
If you want to know how to solve exactly your problem - just call, it's fast and free!
How long is the policy valid?
If you have just bought a car, then the validity period of the MTPL policy for it will be 1 year. But it may change due to various factors– driving experience and age of the vehicle owner. The term of the MTPL policy may be shorter if the car owner plans to use the car, for example, only in the summer or spring. This is very convenient for summer residents, tourists and others who do not use a car all year round.
Quite often, car owners take out an MTPL policy for a period of three months. This option is suitable for people who often change their vehicle, sell a car, or do not use it all year; in this case, you can insure for a short period. Anyone can take out such a policy. It costs two times less than a regular one, which is issued for a year. If necessary, the car owner has the opportunity to purchase a MTPL policy for 6 months. In this case, its cost will be 70% of the annual insurance.
For six months, the car owner will have to pay monthly for insurance, and its cost will remain the same, even if there are changes in tariffs.
The question is, “for how many days can you issue compulsory motor liability insurance?” appropriate, because the period of its validity can be calculated in months and even years, and few people know that the more the cheaper.
In order to register a vehicle, the policy must remain valid for at least 3 months. In other words, you will issue it for 1 year, but the policy will be valid for 3 or 6 months. Under such circumstances, the cost of compulsory motor liability insurance will be 40% of the cost of annual insurance.
There is also so-called transit insurance, which is valid for 20 days. However, in this case you will not have the opportunity to register the car.
What is the period of use of the car?
The period of use of the vehicle is indicated in the policy in the upper right corner of the document, immediately after the “Validity period of the MTPL agreement”. The the indicator means exactly how many months a person will use his vehicle. Throughout the entire period, the insurance company will be required to bear responsibility for it.
If you are going to use the car throughout the year, then the period of use of the vehicle will coincide with the validity period of the insurance policy.
It is worth noting that the shorter the period of time a car owner takes out insurance for his car, the more it will cost him. Therefore, when answering the question “for how long can you insure a car under compulsory motor liability insurance”, I would like to note that the more, the better and more profitable for you. A person can insure a vehicle for several months, but if desired, he can always increase the coverage of the insurance.
Calculation method
There is a basic cost of an MTPL policy for a passenger car, and it is 4,118 rubles.
You can calculate the total cost of the MTPL policy yourself using the formula:
Let's take a closer look at the meaning of these coefficients:
What is the minimum period of MTPL insurance?
In some cases, the driver is interested in insuring his car not for the entire calendar year, but for a shorter period. This may be in his interests when it comes to selling the vehicle soon. Therefore, drivers are interested in the minimum period of MTPL insurance when taking out in 2018.
Taking out a short-term policy is an opportunity to save money. The minimum period for compulsory motor liability insurance 2018 is 3 calendar months. This rule applies to residents of the country.
When paying for 3 months of the policy, keep in mind that the insurance is still valid for the whole year. This option is specified in the concluded contract. This means that you can extend your current policy at any time.
In this case, it is necessary to distinguish between the validity period and the period of use of the insurance policy. The period of use of the MTPL insurance policy is always exactly 1 year. The validity period of the insurance depends on the period of time for which the policy was paid. Drivers often confuse these concepts and find themselves in unpleasant situations.
You will be fined for driving a vehicle while using compulsory motor liability insurance if the insurance period is not extended.
Minimum period of compulsory motor liability insurance for individuals and legal entities
According to the MTPL policy, the minimum insurance period for 2018 varies for individuals and legal entities. The former can count on 3 months, and for the latter, this is a minimum period of 6 months for obtaining insurance. At the same time, the transport that can be insured by a legal entity is prescribed separately: special, harvesting and agricultural equipment.
Special cases
At the legislative level, minimum insurance periods are separately prescribed in exceptional cases. These options apply to the following situations:
- If the car goes to the traffic police department for registration in the database and further use of the vehicle on the country's roads, then in this case the minimum allowed period for registration of compulsory motor liability insurance is 1-20 days.
- A 20-day insurance period is provided for the movement of vehicles within the country to undergo technical inspection and registration.
The minimum period of MTPL insurance in 2018 for foreigners who come to the Russian Federation is also considered separately. If the car does not have official registration in Russia, then the driver has the opportunity to open an insurance policy for a minimum period of 5 days. The maximum validity period of the MTPL policy will be 15 days. As for the cost of MTPL insurance, it will be the same regardless of the time the car remains on the roads of the Russian Federation.
Calculation of the cost of compulsory motor liability insurance when taking out a policy for a minimum period
If payment is made for an incomplete calendar year, then the calculation coefficient must be taken into account. For example, a three-month policy will cost 50% of the cost of annual insurance.
OSAGO is a compulsory civil liability insurance policy for vehicle owners. With the help of compulsory motor liability insurance, you can compensate for the damage caused to the car and other participants in the accident. The minimum period of MTPL insurance depends on the category of vehicle.
By insuring your civil liability with the help of MTPL, you will get rid of worries about compensating the damage caused to the victims. Your insurance company will cover the compensation.
Minimum period of compulsory motor liability insurance
To determine the minimum period of MTPL insurance, you need to determine the category of the vehicle. Each category has its own minimum period of motor insurance. There are 3 categories of vehicles: vehicles registered in the territory of another state and entered the territory of the Russian Federation; Vehicles entering Russian territory in transit; Vehicles constantly operated on the territory of the Russian Federation.
According to current legislation, the minimum period of auto liability insurance in 2020 is three months.
The shorter the insurance period, the cheaper it will cost the vehicle owner. To calculate the cost of a policy for several months, the coefficients indicated in the table are used:
| Insurance period, months (total for the year) |
Cost of annual insurance or term coefficient (Ks) |
|---|---|
| 3 | 0,5 |
| 4 | 0,6 |
| 5 | 0,65 |
| 6 | 0,7 |
| 7 | 0,8 |
| 8 | 0,9 |
| 9 | 0,95 |
Additional Information:
- It is more profitable to purchase a compulsory insurance policy for the whole year at once. Taking out insurance for several months will cost more.
- The price of annual car insurance corresponds to the figures indicated in the policy and does not change throughout the year, even if the price of insurance increases. When taking out a policy for a short period, be sure to find out the cost of annual MTPL insurance. It is always possible to take out insurance for several months and pay extra only if necessary to extend the period of use.
- The insurance period is divided into several parts. Thus, when filling out an application, you can schedule the entire insurance year in advance (two months in winter, a month in summer, three in autumn, etc.). When paying, only the total number of months in a calendar year is taken into account.
Validity period of OSAGO
Owners of a vehicle registered in another country and temporarily located on the territory of the Russian Federation (for a period of no more than two weeks) must purchase a policy for 5 or 15 days.
Cars traveling to a place of permanent operation and cars traveling to a technical inspection point (PIC) must be insured for a period of 20 days. If the owner of the vehicle does not take out a permanent OSAGO policy after the expiration of this period, he will be forced to leave the territory of the Russian Federation.
For other vehicles operated on the territory of the Russian Federation, the validity period of the compulsory motor insurance contract is one year. Please note that the insurance year is not always equal to the calendar year.
The provisions described above apply only to car owners who regularly operate their vehicle. If the vehicle has been in use for less than a year, compulsory motor liability insurance is issued for a shorter period.. The cost of insurance will be reduced by a commensurate amount.
Method for calculating insurance for a shorter period
Insurance companies prefer to sell insurance for a full period (1 year), which is why “short” insurance when calculated per year is more expensive. Thus, to take out insurance for 3 months, a car owner will need to pay 50% of the annual cost of compulsory motor liability insurance, and 6 months will cost 70% of the cost. Purchasing MTPL for 10-11 months will cost the cost of one “full” year.
How to extend the period of use of OSAGO
The annual cost of an MTPL policy is a constant value. As a general rule, a compulsory car insurance contract is always concluded for one year - this information is indicated in the upper right corner of the policy.
If the vehicle is to be sold, it is insured for a minimum period. This step allows the car owner to significantly save money.
If for certain reasons the sale does not take place, insurance can be extended until the end of the policy year. For the remaining 9 months you will need to pay half the annual cost of compulsory motor insurance (the same as for the first 3 months). Thus, having paid 0.7 annual compulsory motor insurance for the first 6 months, for the next you will pay 0.3 annual insurance.
How to save on an MTPL policy
MTPL rules do not provide for payment of civil motor insurance in installments. But The driver can pay for the insurance in stages as follows: make an initial payment for 3 months (0.5 annual insurance), extend the policy for 3 months (0.2 annual insurance), and then pay an additional 0.3 of the annual amount for the remaining 6 months.
Don’t forget to extend your insurance period in advance. Otherwise, you will face a fine with an increasing term coefficient (Ks).
Fine for driving a vehicle during a period of use not covered by the MTPL policy
For driving a car during a period not covered by the compulsory motor liability insurance policy, you may be fined 500 rubles.. A more severe punishment follows for failure to comply with the requirement to insure under compulsory motor liability insurance. You will be fined for not having an MTPL agreement for 800 rubles.
If a traffic accident occurs during the non-insurance period, the insurance company will pay the victim part of the damage, after which it will present a recourse claim to the unscrupulous insured and demand reimbursement of its expenses.
Conclusion
So, for how long can you apply for compulsory motor liability insurance? A car owner can enter into an MTPL agreement for a limited time period (minimum period - 3 months). The insurance premium for the initial months is calculated with an increasing coefficient, and the policyholder has the right to extend the period of use for any number of months - paying extra for them until the end of the policy. The total cost of auto insurance is always the same and does not change throughout the year.
Every driver is required to have a liability insurance policy. But it is not always necessary to take out insurance for the entire period. How to conclude an insurance contract for several months and is it beneficial for the car owner? You will find answers to these questions in this article.
Coefficients for the period of vehicle use for compulsory motor liability insurance - table
First, let’s figure out what the insurance period is and how it differs from the concept of “period of use of the car.”
Insurance period - the period of validity of the contract concluded with the insurance company. Most companies prefer to issue policies for 12 months. This is beneficial not only for the insurer, but also for the car owner.
The period of use of the car is the number of months that the owner uses his vehicle and can receive an insurance payment. The less time a car owner drives his vehicle per year, the cheaper insurance will cost him. You can check the coefficients for the period of vehicle use for compulsory motor liability insurance in the table below. Please note: for insurance for ten or eleven months, you will have to pay the full amount.
Minimum period of car insurance under compulsory motor liability insurance in 2020
What about those who use their vehicle little or plan to part with it soon? The minimum insurance period in 2020 is three months. Please note that if you buy insurance for a short period and then renew it, you will significantly overpay. An annual policy is more profitable for one more reason: you immediately pay for insurance for the whole year, you will not have to pay extra, even if the rates change unexpectedly. In addition, you can save not only time, but money by purchasing a policy online.
How to extend the period of using osago insurance online
A short policy period is chosen by those who plan to sell a car in the foreseeable future. In the future, if you wish, you will be able to extend the contract.
How to extend the validity period of the insurance policy? To do this, you need to contact the company and pay the difference for the remaining months. For example, if you first took out a six-month policy, you paid 70 percent of the cost of an annual auto policy. If you need to extend the insurance contract for another six months, you need to contact the company’s office and pay another 30%.
The period of time during which a driver who has purchased a policy can expect to receive payment after an accident is called the validity period. On the territory of the Russian Federation, the most common period of liability insurance is 1 year. However, few people know that insurance can be purchased for a shorter period.
In this case, its cost will be reduced in proportion to the period. What is the minimum insurance period established by law? It depends on which of the three categories the car is classified into. There are only three categories:
- Cars that are used only in Russia. Such cars can be insured for a period of at least 3 months. Typically, this period is chosen by drivers who use a personal car for one season, for example, spring and summer (in order to go to the country).
- Cars with transit license plates. Insurance in this case, on the contrary, cannot be more than 20 days. It's called temporary. During this period, the driver usually removes or registers the car with the traffic police.
- Cars with permanent registration abroad. Usually these are cars of travelers from neighboring countries. They can insure the car for a period of no less than 5 and no more than 15 days. Even if the traveler plans to enter for just one day.
Validity period of the MTPL policy and period of use of the vehicle
It is worth noting that MTPL policies concluded for any period will always have a mark of 1 year. The number of months is prescribed separately and is called the period of use, which is actually the period during which the driver will use the car.
For example, a driver buys insurance for three months. He can choose a month in summer, a month in spring and a month in winter. How convenient for him. Accordingly, the insurance policy will cost less if you take it out for such short periods. However, if you compare the cost of an annual policy per month and a limited one for 3 months, then an annual one will cost less.
So, how much will the driver save if the period of use is 3 months? The coefficient will be - 0.5. To see the full table of coefficients, consider Figure 1.
When concluding an insurance contract, you must always clearly monitor its validity period and expiration. The law establishes a fine of 500 rubles for an expired policy.
It is possible to extend the validity period of compulsory motor liability insurance limited by periods. It is absolutely not necessary to take out a new policy every time, because, as we have already found out, this can be very unprofitable. If such a need arises, in most cases it is better to purchase a policy for the whole year at once.
A short video will tell you more about these two concepts:
Preferential month under OSAGO
Any MTPL policy tends to end someday. Many drivers believe that after the insurance period expires, it is automatically extended for another year and you can continue to drive safely, paying for the next year in the near future. Some motorists believe that after the expiration of the policy they have a “grace month”, something like a “bonus” period that the insurer provides to the driver.
You should be seriously wary of such misconceptions. The rule, according to which the validity of the policy was extended for one month in the absence of a refusal by the policyholder, was in force until 2008. Currently, after the expiration of the policy, the driver has no right to drive a car. Such a violation is subject to a fine and confiscation of numbers, and this is a very unpleasant procedure. In addition, in the event of an accident due to his own fault, the motorist will be liable with his own financial resources.
Thus, the legislation does not provide for such benefits and the driver should wisely plan the period of insurance and use of his car in advance.