The price of an OSAGO (compulsory motor third-party liability insurance) policy is not arbitrary: it is built from a base rate and several coefficients approved by the Bank of Russia. Since 9 December 2025, Bank of Russia Directive No. 7204-U of 9 October 2025 has applied (as amended by Directive No. 7349-U of 4 May 2026). Let us go through each multiplier and work out an example.
The formula
For cars (B, BE), motorcycles and taxis registered in Russia:
Premium = TB × KT × KBM × KVS × KO × KM × KS
KM does not apply to lorries, buses, trams, trolleybuses and tractors. There are also special cases:
- driving to the place of registration (a contract of up to 20 days after buying a car) — without KT and KS, but with a KP coefficient of 0.2;
- a short-term contract from one day to three months and vehicles with foreign registration — with a KP coefficient; for a short-term contract the insurer sets its own reducing KP.
TB — the base rate
The Bank of Russia sets a corridor, and the insurance company chooses the exact value within it according to its own methodology. For cars owned by individuals and sole proprietors the corridor is RUB 1,399–8,665, for organisations RUB 724–6,580, for taxis RUB 1,267–18,119 and for motorcycles RUB 155–4,260. The TB explains why prices differ between companies for the same driver details.
KT — territory
Depends on the place of residence of an individual owner or the location of an organisation. Examples for cars: Moscow — 1.8, Moscow Region — 1.56, St Petersburg — 1.64, Novosibirsk — 2.34, Kazan — 1.7, Sevastopol — 0.82. Tractors have a separate column with lower values.
KBM — bonus-malus
Reflects the driver's accident record. There are 15 classes in total: from M (3.92) to 13 (0.46). A newcomer with no history in the database gets class 3 and a KBM of 1.17. The class is recalculated once a year for the period from 1 April to 31 March: a year without payouts caused by you means one class up, each payout means a downgrade. More in "KBM: how to check and restore your class".
If several drivers are named in the policy, the highest KBM among them is used. For an unrestricted contract on a car owned by an individual, the class 3 KBM — 1.17 — applies.
KVS — age and experience
Applies only to policies with a restricted list of drivers. If there are several drivers, the highest coefficient is used. For cars owned by organisations, KVS is multiplied by 1.8. The table for cars and other vehicles except motorcycles (driving experience in years):
| Age | under 1 | 1 | 2 | 3–4 | 5–6 | 7–9 | 10–14 | 15+ |
|---|---|---|---|---|---|---|---|---|
| 18–21 | 2.27 | 1.92 | 1.84 | 1.65 | 1.62 | — | — | — |
| 22–24 | 1.88 | 1.72 | 1.71 | 1.13 | 1.10 | 1.09 | — | — |
| 25–29 | 1.72 | 1.60 | 1.54 | 1.09 | 1.08 | 1.07 | 1.02 | — |
| 30–34 | 1.56 | 1.50 | 1.48 | 1.05 | 1.04 | 1.01 | 0.97 | 0.95 |
| 35–39 | 1.54 | 1.47 | 1.46 | 1.00 | 0.97 | 0.95 | 0.94 | 0.93 |
| 40–49 | 1.50 | 1.44 | 1.43 | 0.96 | 0.95 | 0.94 | 0.93 | 0.91 |
| 50–59 | 1.46 | 1.40 | 1.39 | 0.93 | 0.92 | 0.91 | 0.90 | 0.86 |
| over 59 | 1.43 | 1.36 | 1.35 | 0.91 | 0.90 | 0.89 | 0.88 | 0.83 |
Experience and age are determined as of the start date of the insurance. Motorcycles have a separate table.
KO — restriction on drivers
A policy with named drivers has KO 1. Without restriction — 3.16 for individuals and 1.97 for organisations.
KM — engine power
| Power (hp) | KM for B, BE |
|---|---|
| up to 50 inclusive | 0.6 |
| over 50 up to 70 | 1 |
| over 70 up to 100 | 1.1 |
| over 100 up to 120 | 1.2 |
| over 120 up to 150 | 1.4 |
| over 150 | 1.6 |
Power is taken from the vehicle passport or registration certificate. If it is given only in kilowatts, it is converted at 1 hp = 735.499 W.
KS — seasonal use
If the car is not used all year round, the premium is lower: 3 months — 0.5; up to 4 months — 0.6; up to 5 — 0.65; up to 6 — 0.7; up to 7 — 0.8; up to 8 — 0.9; up to 9 — 0.95; over 9 months — 1.
Sample calculation
The owner lives in Moscow and there is one driver — aged 35, with 10 years of experience, KBM class 6. The car has 150 hp and is used all year round.
- KT = 1.8; KBM = 0.83; KVS = 0.94; KO = 1; KM = 1.4; KS = 1.
- At the minimum TB: 1,399 × 1.8 × 0.83 × 0.94 × 1 × 1.4 × 1 ≈ RUB 2,751.
- At the maximum TB: 8,665 × 1.8 × 0.83 × 0.94 × 1 × 1.4 × 1 ≈ RUB 17,036.
The same car with an unrestricted policy: KBM 1.17, no KVS, KO 3.16. The result is roughly RUB 13,034 to RUB 80,731 — the difference from a named driver is obvious.
The real price will fall within this range and depends on the TB of the particular company.
Why the price differs between companies
All coefficients except the TB are the same for every insurer: their values are fixed by the Bank of Russia and a company cannot change them. Only the base rate differs. The insurer sets it within the corridor according to its own tariff methodology. It is prohibited from taking into account nationality, language, race, party membership, official position and attitude to religion.
The minimum and maximum TB for cars owned by individuals differ by more than six times, so the final price for the same driver can differ several-fold between companies. It makes sense to compare offers at every renewal rather than renewing automatically.
If during the contract you add a new driver or change the terms, the insurer recalculates the premium at the tariffs in force on the date of the change, in proportion to the remaining term. This may mean either an additional payment or a partial refund.
How to lower the price legally
- Name in the policy only those who actually drive — one inexperienced driver raises KVS and KBM for the whole contract.
- Check your KBM in the database: a wrongly downgraded class is corrected and the overpayment refunded.
- For a seasonal car, choose the period of use.
- Compare the TB of different insurers — use the OSAGO calculator and the directory of insurance companies.
What has changed in the tariffs compared with last year is covered in "OSAGO in 2026: what has changed".