Minimum period of car insurance under MTPL

Minimum period of compulsory motor liability insurance

Typically, a car title agreement is issued for a period of 1 year. The MTPL Law provides for situations where it is allowed to purchase a policy for a shorter period. Let's find out what the minimum period of insurance under compulsory motor liability insurance is regulated by regulations.

Minimum period allowed for registration

All conditions and the period for which it is permitted to conclude an insurance contract are established at the legislative level and are applied by all insurance companies.

The minimum insurance period depends on the type of vehicle.

The following categories are distinguished:

• vehicles constantly in use in Russia;
• vehicles registered in other countries, but permission is required to enter our country;
• vehicles passing through the territory of the Russian Federation in transit.

Art. 10 of Law No. 40-FZ limits the frequency of insurance as follows:

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In the listed cases, the policy is allowed to be purchased for the period of movement, but not less than the established period.

As soon as the insurance period expires when driving from one region to another, the owner, before registering with the traffic police, is required to issue a permanent policy for a period of 1 year.

Citizens using transport on a general basis can enter into insurance for a limited period - 3 months (Article 16 of Law No. 40-FZ)

Such insurance conditions are more often of interest to certain categories of owners if:

• transport is used only in the warm season, for example, summer residents, they buy compulsory motor insurance for 3-6 months;
• They plan to sell the car in the coming months. In this case, it is allowed to buy a policy for 3 months;
• the owner is often away and is not at home for six months, for example, a sailor.

In these cases, to obtain insurance, drivers must:

• when contacting the insurance company, you must inform that a short-term policy is required;
• passport to confirm identity;
• documents for the car;
• forms confirming that the applicant is the owner of the vehicle;
• driver's licenses of all persons authorized to drive a vehicle.

The law provides for different insurance periods; you need to determine what period is required for your car.

Calculation method

In order to determine the cost of the final amount of insurance, insurance company managers use a special calculator and methodological aids for correct calculation.

For this purpose, the table of coefficients is used:

The table shows that if you buy a policy for 3 months, its price will be much less. But given the applied coefficient, for one quarter of insurance you will have to pay 50% of the cost of compulsory motor liability insurance for the year.

If the owner decides to buy a car insurance for 10-11 months, then it will be equal to the full cost of annual insurance.

Features of calculating the policy for a shorter period

Using the available data, you can calculate the final cost of compulsory motor insurance for any period of interest.

Certain nuances are monitored:

• it will be more profitable if you buy a policy for the whole year, because it is impossible to plan in advance when you will need a car;
• the price of annual insurance will not change during the entire insurance period, even if prices for these services increase;
• if the insurance period is divided into several parts, then when submitting an application you can immediately indicate which months the car is supposed to be used.

Is it possible to extend the validity of OSAGO?

The generally accepted period for concluding an MTPL agreement is 1 year. The total cost is constant throughout the year.

In some cases, it is allowed to issue a policy for 3 months, for example, if you decide to sell the car. But if the deal could not be completed, the insurance contract can be extended until the end of the year.

Here are examples of calculating how much you will need to pay taking into account the coefficients:

• if you initially bought a policy for 3 months and paid 50% of its annual cost, then for 9 months you need to pay the remaining 50%;
• if insurance was purchased for six months and 70% of the total cost was paid for it, then for the next six months you need to pay another 30%.

If a policy was purchased for a limited period, then driving at other times is prohibited.

Penalties

If traffic police inspectors establish a violation, the driver will face a fine:

• 500 rub. for operating a vehicle during a period not covered by the MTPL policy;
• 800 rub. if it is recorded that the driver was driving a car without a license.

The law allows you to buy a compulsory motor liability insurance policy for 1 year or for a shorter period. This is possible in cases specified in regulations.

OSAGO for a minimum period, or Period of use

All drivers participating in road traffic in the Russian Federation are required to have an MTPL insurance policy. At the moment, the cost of a car license can be calculated for 3 categories of vehicles:

1. For vehicles registered in foreign countries.
2. For vehicles traveling to the place of registration (transit) or to undergo technical inspection.
3. To register the vehicle with the traffic police and further use in the Russian Federation.

Accordingly, each category has its own minimum insurance period. For the first, it ranges from 5 to 15 days, i.e. for an MTPL contract that “fits” within this interval, the policyholder will pay the same amount.

For drivers driving a vehicle across Russia to the place of permanent registration or going for a PIK (technical inspection), the insurance period is always the same - 20 days, no less and no more.

The last, main group of car owners concludes a standard MTPL agreement, the calculation procedure of which is the same for all insurance companies in the Russian Federation. Let’s take a closer look at this particular auto insurance policy.

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Insurance period and period of use in the MTPL policy

First, let's look at the terms used when taking out MTPL insurance: “Contract validity” and “Vehicle use period.”

Insurance period. In the upper right corner of the MTPL policy, the “Validity period of the MTPL agreement” is written, and it is ALWAYS 1 year.

Period of use. It is indicated in the next line of the policy and determines the months during the contract period (policy year) when the car owner will use his vehicle and the insurer will be responsible for it. If the driver plans to use the car all year, the period of use coincides with the annual validity period of the OSAGO.

But not all car owners use their vehicles all year round. A limited period of use (several months a year) is relevant, in particular:

• for “snowdroppers” who use the car exclusively during the warm season;
• for those who plan to sell the vehicle in the near future;
• for car owners going on long business trips, vacations, etc.

And of course, the fewer months a year a driver uses his car, the lower the cost of MTPL insurance for him.

Minimum period of use, or the cheapest MTPL

Today, you can conclude a contract under compulsory motor liability insurance for at least 3 months (the period of use within the framework of annual insurance, do not forget).

In general, when calculating compulsory motor liability insurance for several months, the following table is used.

Table 1. Dependence of the cost of insurance on its duration.

The cost of compulsory motor liability insurance for 10 and 11 months will cost the annual insurance.

Important:

• Car owners who take out MTPL for several months a year pay more for each month than those who buy a policy for the whole year.
• The cost of annual MTPL insurance will not change during the annual insurance period indicated in the policy, even if rates increase during this year.
  When taking out a policy for several months, be sure to find out the cost of annual MTPL insurance, at least in order to know the subsequent surcharge (if it is required in case of increasing the period of use). You can insure for several months, and then, if necessary, pay extra and extend the period of use.
• The period of use in the OSAGO policy form is “divided” into several parts.
  That is, you can immediately “schedule” the entire insurance year in advance when applying for compulsory motor liability insurance. For example: 1 month in winter, 3 months in summer, 1 month in autumn and other variations. When paying, only the total number of months in a year is important.

Additional payment for MTPL policy, or how to extend the period of use

The arithmetic is simple. The MTPL insurance contract is always concluded for a year (see the upper right corner of the policy). The annual cost of the policy is a constant value.

As a rule, those who plan to sell it in the near future insure their car for a minimum period of 3 months. And, as can be seen from the table, for 3 months the policyholder will have to pay half the annual cost of compulsory motor liability insurance.

If for some reason the sale does not take place, the insurance can easily be extended until the end of the policy year. In this case, the additional payment for the remaining 9 months will be the remaining half of the annual cost of compulsory motor insurance (the same as you paid for the first 3 months).

Accordingly, as can be seen from the table, having paid 0.7 annual compulsory motor insurance for the first six months, for the remaining 6 months you will need to pay an additional 0.3 annual insurance.

How to save on an MTPL policy

It is known that the OSAGO Rules do not provide for payment of car insurance in installments.

But no one is stopping the driver from first paying for 3 months (0.5 annual insurance), then extending the policy for another 3 months (0.2 annual insurance), and then paying only 0.3 annual amount for the remaining six months. In essence, it turns out to be the same installment plan. If you don’t waste your time, it’s very profitable given certain financial difficulties and our level of inflation.

The main thing is not to forget to extend the period of use in advance. Otherwise, the insurer has the right to charge for subsequent months as for the first, i.e. with increasing coefficient Kp.

Fine for driving a vehicle during a period of use not covered by the MTPL policy

Driving a vehicle during a period not covered by the MTPL policy entails a fine of 300 rubles. Don't settle for more.

Let's explain with an example. If the MTPL insurance period is from May 5 to May 4, and the period of use is from May 5 to August 4 (3 months), then by driving a vehicle after August 4 and before May 4, you risk your wallet.

The main thing is not to confuse failure to fulfill the civil obligation to insure under MTPL, (i.e. the complete absence of a MTPL contract), which is punishable by a fine of 500-800 rubles or removal of numbers, and forgetting to extend the period of use within the insurance year.

If an accident occurs during a period not covered by the compulsory motor liability insurance policy, the insurance company will pay the victim, but then present a recourse claim to the negligent insured and force him to reimburse his expenses.

So:

• You can conclude an MTPL agreement for a limited period of time - for 3, 4, 5, etc. months.
• In this case, the insurance premium for the first months will be calculated with an increasing coefficient.
• The policyholder has the right to extend the period of use for any number of months, respectively, paying extra for them, until the end of the policy year.
• The total cost of compulsory motor liability insurance for the year should be the same, both for a one-time payment and for payment in installments, by month.

For what minimum period can a car be insured under MTPL?

Every driver knows that before he gets behind the wheel of his car, he must take out MTPL insurance. This document can be issued for a specific period, usually 12 months. But many are interested in the minimum period of compulsory motor liability insurance. Not all drivers drive a vehicle all year round; many prefer to use the car only in the summer; some even need a couple of months. What to do in such a situation? Let's try to figure it out.

Is it possible to independently determine the validity period of compulsory motor liability insurance?

When drawing up an insurance contract, the policyholder has the right to choose the validity period of this document from the proposed options. In most cases, vehicle owners prefer to purchase compulsory motor liability insurance for 1 year or 6 months. In fact, insurers may offer other time periods, for example, 3, 4, 5 months, as well as 7, 8, 9, 11 months. The fact is that it is not cost-effective for the policyholder to purchase an insurance contract for these periods of time, since their cost will practically not differ from the price of insurance that will be valid for 6 months or a year.

But 3 months is not the minimum period for which you can buy a policy. For example, insurance is valid for 20 days for vehicles that have transit license plates. Insurance is valid for 5 days for cars that are in the country temporarily.

According to the laws of the Russian Federation, the insurance company can offer the client other insurance periods. The insurer has the right to individually negotiate with the insurer and issue a policy for any period.

But in most cases, companies offer the following time periods for insurance:

How to get insurance

You can apply for insurance yourself via the Internet or in person with an insurer. Before you draw up a document with one or another insurer, you should definitely find out whether it has the right to conclude such documents. The insurance company must be a member of the Russian Union of Auto Insurers. If the insurer is not one of them, then it is not worth taking out a policy with him, even if the document costs several times less.

To apply for compulsory motor liability insurance in any way, you must have the following documents:

• a valid passport of the policyholder and persons who will be allowed to drive the vehicle;
• the rights of everyone who will drive a car;
• STS or PTS;
• Diagnostic card for the car.

If the registration takes place at the office of the insurance company, then it is better to arrange a meeting in advance. You can often wait in line all day, so it’s best to call in advance and make an appointment. Having presented all the documents, the specialist must draw up an insurance document and, after payment, will hand it over to the policyholder. As a rule, the registration itself takes no more than 10-20 minutes.

Is it possible to sell a car without compulsory motor liability insurance?

Car owners often wonder whether it is possible to sell a car without a policy. In fact, there is nothing prohibited in this, but the new owner must take out a policy within 10 days after purchase, because without this document he will not be able to register the vehicle in his name.

Penalty for lack of document

The MTPL policy is a mandatory document. A driver who does not have a policy or who is not included in it does not have the right to drive a vehicle. If a traffic police officer stops such a violator and reveals the absence of compulsory motor insurance, he will definitely issue a fine. The amount of collection today is 800 rubles. If within 20 days after receiving the protocol the violator decides to pay the fine, then he is given a 50% discount, that is, he will pay only 400 rubles.

How is the insurance amount calculated?

The cost of the policy is calculated based on several indicators:

• driving experience of drivers who are included in the document;
• presence of accidents during the last insurance period;
• region of vehicle registration;
• age of drivers;
• age of the vehicle;
• engine power.

Naturally, if the driver has had several accidents over the past year, then the cost of the document will be significantly higher than in the previous period. If the driver has a lot of experience and drives the car carefully, then the price of insurance will be lower.

You can calculate the cost of compulsory motor liability insurance using the formula used by insurers, but it takes a long time and you can often simply get confused in it. For a more accurate calculation, you can use a special calculator, which is presented on our website.

Is it worth taking out a policy?

During this year, 2019, many vehicle owners simply did not take out a policy, citing the high cost of the document. Yes, the insurance premium has increased significantly recently, but still, compulsory motor liability insurance is a mandatory document by law.

I’ll pay a 400 ruble fine and move on - this is what many who refused the policy think. Maybe it will be more economical if you never get into an accident. But life is such that it is impossible to think through everything in it! Firstly, if the question arises about re-registering a car, you will still have to obtain compulsory motor liability insurance, because without this it is impossible to register the vehicle. But that’s not all; if you get into an accident, being the culprit, you must compensate the victim for damages from your own pocket. If the culprit refuses to do this, the victim will simply sue. As practice shows, damage is very rarely even comparable to the cost of the policy and in most cases it is many times greater. As a result, it turns out that a driver without insurance receives not only a large amount of money to pay, but also a headache.

How to reduce the cost of OSAGO

You can reduce the cost of insurance only by being careful when driving your car. If the driver has no accidents, then insurance will only become cheaper every year, since the 2 most important indicators will give the lowest coefficient for calculation - experience and the absence of an accident.

What is the point of insuring a car under compulsory motor liability insurance for a minimum period?

Car owners have the opportunity to take out MTPL policies not only for one year, but also for a shorter period. After all, why pay for regular annual insurance if the car is only used for a few months? For the convenience of UK drivers, in 2019 they offer alternative options for both foreigners and citizens of the Russian Federation. Only for Russians a minimum period of compulsory motor liability insurance has been introduced, equal to three months.

Minimum insurance period under compulsory motor liability insurance

Car insurance rules apply to all insurance companies and are the same for motorists in the Russian Federation.

Moreover, the conditions are somewhat different for individuals and organizations. For what minimum period can you insure your car for these cases?

For individuals

Ordinary citizens use cars for personal purposes. They can buy a policy that insures for a period of three months. Tariffs for those registered as an individual entrepreneur apply exactly the same, and accordingly, the terms for them will be the same.

It should be noted that the minimum insurance period, although established by law, may depend on the specific company. Some do not adhere to the minimum period, but prefer to enter into an agreement only for 6 or 12 months, no less.

Car owners from other countries are allowed to purchase a policy from 5 days to 6 months. If a week is not enough for a car owner, then you can sign an agreement for a longer period, for example, 30 days. This practice occurs quite often, because the circumstances of a foreigner’s stay in Russia may change, and he will have to stay longer. In order not to worry about the safety of the car once again, it is insured for a longer period.

Based on the permit, foreign citizens are required to renew their policies in order to move freely on Russian roads.

Cars that travel under their own power from the place of purchase to the place of residence of the owner are usually insured for a period of 20 days. This time is just enough for the haul.

Let's summarize what kind of policies individuals are allowed to take out. persons:

1. Primary (up to 15 days) - for foreigners.
2. Transit (20 days) - for transported cars.
3. Public (from three months) - for all motorists.

There are different situations in life, so sometimes purchasing compulsory motor liability insurance with a shortened validity period turns out to be very useful. If you plan to put the car up for sale, it is advisable to insure it for a shorter period of time. In the future, it will be possible to extend this period. This operation costs less than purchasing a full-fledged MTPL policy.

OSAGO is not sold in installments, but the car owner can distribute the costs of paying for the insurer’s services with full right and certain benefit. Main stages of payment:

• 90 days, in which case the cost of 0.5% of the insurance is charged;
• contract extension (coefficient applies from 0.2%);

As a result, it turns out that the annual cost of the policy is still paid, but only in parts.

This method can be convenient under different circumstances, since you don’t have to overpay when renewing. If you take out insurance anew each time, then a certain coefficient is calculated, which increases the price of the car insurance. You must strictly adhere to the terms of prolongation (extension) of insurance, otherwise you will have to re-issue it.

By law, legal entities (organizations, enterprises, companies) are required to purchase car insurance for a period of 6 months. But issuance for 20 days is also possible if the vehicles have transit plates. Many organizations buy vehicles in other regions, so in practice this type of agreement is often used. It is not profitable for companies to insure the transport of legal entities for a short period of time, but they make concessions to satisfy the needs of their clients.

Ten-month or annual insurance is approximately the same. Only in rare cases are organizations and vehicle fleets allowed to insure equipment for a shorter period if it is used seasonally (for clearing snow in winter).

How much insurance should I take out to register my car?

Car insurance is always necessary, since without it, vehicles are prohibited from driving on the roads. After purchasing a vehicle, it is better to choose the most profitable option for a car title, since its cost is constantly growing. It is most advisable to take out a policy for a year at once. After doing some calculations, you can understand that this is much more profitable than a short period.

Payment for a shorter period is calculated taking into account a coefficient that can increase the price by 20%, or even 60%. For example, for MTPL for 3 months you will have to pay almost twice as much as for the same months, but with annual coverage. And if you sign a contract for 6 months, you will have to pay for it as for seven months. And if you take out a policy for 9 months, it will cost the same as an annual one.

In addition, the cost of car insurance services is constantly increasing. Given this trend, you will have to pay more for each new short period. And after signing a contract for 12 months, the insurer no longer has the right to charge an additional payment from the owner due to an increase in tariffs.

Even for the purpose of attracting clients, the insurance company does not have the right to enter into an agreement for only one or two months. The minimum time cannot be reduced as it is established by law.

To register a car without any problems, the minimum duration of insurance must be 3 months. To avoid standing in line, you can get it online.

When going out on the road, each driver must have a printed copy of the electronic MTPL insurance or a regular form received at the office.

What is the period of use of the vehicle

What does the concept of period of use of a vehicle mean? The term of car insurance and the period of operation of the vehicle are two different things. They cannot be confused.

The time for which the insurer enters into an agreement with the client is called the auto insurance period; it is always equal to 1 year. And information about the period is indicated in the line below, which indicates what period of time the car will be used. You can indicate different months, since some personal or company vehicles are engaged in transportation during a certain time period.

This is intended to reduce the costs of the policyholder if his vehicle is not used for the entire year.

If you buy a policy for a year at once, then the period of use in it will completely coincide with the insurance period.

How to extend it

You can change the validity period of the contract by visiting the insurer's office. To do this, the car owner will need:

• hand over your passport to the employee at the MTPL office;
• write an application indicating the period for which it is desirable to extend the insurance contract;
• Find out from a specialist the amount of the surcharge;
• deposit the required amount into the cash register;
• sign the form and pick up your copy of the policy.

The signed contract remains with the insurer. To avoid waiting in line, you can make an appointment at the IC in advance by phone.

Who benefits from purchasing minimum insurance?

Taking out a policy not for a year, but for a shorter period, can be useful for several categories of the population and some companies. Let's list them:

1. Legal faces. Since enterprises buy vehicles to update their fleet in other regions, it is easier to purchase insurance for a minimum period while driving them to the place of registration.
2. Summer residents. Usually these are pensioners who only need a car during the warmer months to go to a plot of land outside the city. For the winter, they put the vehicles in the garage.
3. Drivers engaged in seasonal business.
4. Citizens who go on long business trips for work and rarely use a car.
5. Owners who decide to sell the car. After implementation, the contract can be terminated early and part of the funds returned.

How is the price of a short term policy calculated?

To help the motorist, we provide a table. It will allow you to roughly calculate the cost of the policy and help you assess how economically and effectively you can use it.

The price will depend entirely on the period for which the contract is drawn up:

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.