Compulsory motor third-party liability insurance (OSAGO) raises many questions, especially after changes to rates and rules. We have collected answers to the most common ones, based on the rules in force in 2026.
Who must have OSAGO?
All owners of vehicles used in Russia, except in the cases listed in Article 4 of Federal Law No. 40-FZ (for example, vehicles with a maximum design speed of 20 km/h or less). Driving without a valid policy is prohibited and is subject to a fine under Article 12.37 of the Russian Code of Administrative Offences. Driving by someone not listed on a policy with a restricted list of drivers, and driving outside the period of use, are penalised separately.
How is the price calculated?
The price is calculated using the Bank of Russia formula: TB × KT × KBM × KVS × KO × KM × KS. Here TB is the base rate, KT the regional coefficient, KBM the bonus-malus, KVS the driver's age and experience, KO the number of permitted drivers, KM engine power and KS seasonal use. The current values are set by Bank of Russia Directive No. 7204-U (as amended by Directive No. 7349-U of 4 May 2026). For passenger cars owned by individuals, the base rate falls within a corridor of 1,399 to 8,665 rubles, and a policy with no restriction on drivers uses a KO coefficient of 3.16.
You can estimate your policy with the OSAGO calculator.
What is the KBM and how can I check it?
The bonus-malus coefficient (KBM) reflects a driver's accident record: it goes down for driving without at-fault accidents and goes up after accidents you cause. The KBM is determined using data from the OSAGO automated information system (AIS OSAGO) and is recalculated once a year. If the wrong KBM was applied when you bought the policy, ask the insurer in writing to correct it; if it refuses, contact the Bank of Russia.
Is a "50% discount" on OSAGO legal?
No. The insurer must calculate the premium according to Bank of Russia rules, and arbitrary OSAGO discounts are not allowed. A "half-price" policy from a random intermediary is a warning sign: it may be a fake. You can check a policy in AIS OSAGO by its number or by the car's number plate.
Can I buy OSAGO online?
Yes. An electronic policy (e-OSAGO) has the same legal force as a paper one. Its details are entered into AIS OSAGO, and a traffic police officer checks the policy in the database. It is worth keeping a printout or file of the policy at hand in case of connection problems.
How do I add a new driver or change details?
Inform the insurer of the changes — a new driver, a new number plate, passport or driving licence. The company will amend the contract. If the changes increase the risk — for example, a driver with little experience is added — you will have to pay an additional premium based on the new coefficients. Until the changes are made, a driver not listed on a policy with a restricted list must not drive the car. Learn more in "How to Make Changes to an OSAGO Policy".
What happens to the policy when I sell the car?
An OSAGO policy does not pass to the new owner: the buyer takes out their own contract. The seller may terminate the contract early due to the change of ownership and get back part of the premium for the unused period. To do so, submit an application and the sale document to the insurer.
Can I insure the car for just a few months?
The contract is concluded for one year, but you can specify a period of use — for example, summer months only. For passenger cars owned by individuals, the minimum period is three months. The shorter the period, the lower the KS coefficient and the price. You must not drive outside the period of use: in an accident, the insurer will pay the victim and then recover that money from you (recourse).
What is direct loss settlement?
If only vehicles were damaged in an accident and the participants' liability is insured under OSAGO, the victim claims from their own insurance company rather than from the at-fault driver's insurer. The companies then settle between themselves without involving the client.
How much will be paid and how?
The limit is 400,000 rubles for property damage and 500,000 rubles for harm to the life and health of each victim. For passenger cars owned by individuals, the main form of compensation is repair at a repair shop the insurer refers you to; cash is paid in cases provided for by law or by written agreement. The insurer has 20 calendar days (excluding non-working public holidays) to decide, and a penalty of 1% per day accrues for delays.
Can the victim choose an expert?
The insurer arranges the inspection and damage assessment, and the victim must make the car available. If the company fails to carry out the inspection within the set period, the victim may go to an independent expert on their own, and the results of that assessment are used to determine the payout.
What if the insurer refuses to pay?
First, send a written claim. Then apply to the financial ombudsman — for OSAGO this pre-trial step is mandatory. You can go to court if you disagree with the ombudsman's decision or if it is not complied with.
What happens if I am found at fault?
Your insurance company will compensate the victims within the limits. You will not get your own car repaired under OSAGO — for that you need KASKO (comprehensive car insurance). At the next recalculation your KBM will rise and the policy will become more expensive. If the damage exceeds the limit, the victim may recover the difference from you personally.
Learn more about the policy on the OSAGO page and see the step-by-step guide in "What to Do After a Road Accident Under OSAGO". Polis Re specialists will help you compare insurers' offers — submit a request.