Top factors influencing car insurance

Auto insurance, especially compulsory motor third party liability (OSAGO), is mandatory for all drivers in Russia, and its cost in 2025 varies from 5,000 to 20,000 rubles depending on a number of factors. According to the RSA, the average price of a policy increased by 8% in 2024. This article reveals the key factors affecting the cost of auto insurance and provides tips on how to save money.

Bonus-malus coefficient (KBM).

KBM is the main factor determining the cost of OSAGO. Accident-free driving reduces KBM by 5% annually, which gives a discount of up to 50% with a KBM of 0.5. Conversely, accidents increase the coefficient, raising the price of the policy. Check the KBM on the RSA website to avoid insurer errors.

Tip: Regularly update the RSA database with data, especially when changing insurance companies, to retain the discount.

2. Engine power

Cars with a power output exceeding 150 hp have a higher coefficient (up to 1.6), which increases the insurance cost. For example, a LADA Vesta with 106 hp will cost less than a Haval Jolion with 190 hp.

Tip: To save money, choose a car with an engine up to 120 hp, especially if it's your first car.

3. Region of registration

Region significantly affects the price. In Moscow and St. Petersburg, the coefficient reaches 1.8–2.0 due to high accident rate, while in small cities it is lower (0.6–1.0). For example, a policy in Moscow (30%) is more expensive than in Tver.

Tip: If possible, register the car in a region with a low coefficient, for example, with relatives in the countryside.

4. Driver age and experience

Young drivers (under 25 years old) and novice drivers (less than 3 years of experience) receive a coefficient of up to 1.8, which increases the cost. Experienced drivers over 35 years old with 10+ years of experience pay less.

Tip: Limit the circle of drivers in the policy, excluding young ones, to reduce the coefficient.

5. Type and age of the vehicle

New cars require КАСКО (Comprehensive Insurance), which increases overall expenses. Used cars over 7 years old may have ОСАГО (Liability Insurance) discounts, but require thorough inspection of their condition to avoid claim denial.

Tip: For used cars, use diagnostics at a service station to convince the insurer of the vehicle's roadworthiness.

Telematics and additional services

In 2025, insurers like VSK are actively implementing telematics that track driving style. Careful drivers may reduce the cost of OSAGO insurance by up to 20%. However, additional services, such as life insurance, increase the price.

Tip: Decline unnecessary services and install a telematics device to save money.

How to save money on car insurance

• Compare offers. Use Sravni.ru or Banki.ru to find выгодных выгодные tariffs.
• Maintain accident-free operation. Avoid minor accidents to keep a low MBI.
• Choose the minimum coverage. For older cars, basic OSAGO without KASCO is sufficient.
• Use state programs. Subsidies are available for electric cars, reducing insurance costs.

Conclusion

The cost of car insurance depends on the КБМ (minimum subsistence level), power, region, driver's age, and condition of the car. Comparing offers, telematics, and refusing unnecessary services will help you save money in 2025. Check the terms and use online calculators to choose the optimal policy.