On January 1, 2025, a car insurance reform focused on European standards will begin in Ukraine.
Its purpose is to improve the financial protection of drivers and improve the quality of service, according to the leading online insurance service hotline.finance.
What will be the indemnity payment under the policy?
Starting in the new year, the payment limits for compulsory motor liability insurance will increase significantly:
● Compensation for property damage will increase from 160,000 UAH to 250,000 UAH.
● Payments for damage to life and health will increase from UAH 320,000 to UAH 500,000.
If before there was a possibility of lack of compensation amounts and partial self-coverage of the damage of the accident perpetrator, now these risks have been reduced.
Major changes in the motor vehicle
● There is no deductible for all auto insurance policies. The franchise is no longer on the cards. All losses are covered by the insurance company without the participation of the policyholder. This will avoid additional costs for vehicle owners.
● Direct damage repair. Victims of an accident can contact their insurance company directly, instead of the at-fault party’s insurer, which simplifies the process of receiving compensation.
● Payment regardless of vehicle damage. Insurance payments will be made in full regardless of the breakdown of vehicle parts. This is especially important for owners of older cars, because the compensation used to be significantly lower than the actual cost of the repair.
● Organization of settlement of an insurance company. Instead of cash payment, the insurance company can ensure that the vehicle is repaired at authorized service stations.
In 2025, it is planned to introduce an automated system for checking the availability of compulsory motor insurance through speed cameras. Violation of the policy will be automatically recorded, and each case of violation will result in a fine.
What should motorists expect?
The modernization of the motor vehicle market will increase not only the level of service, but also the cost of compulsory motor insurance. It is likely that the price of insurance will increase by 100% in some areas.
Sample prices for 2024 and 2025:
How to save on car insurance?
Motor vehicle license registration under the old conditions is open until December 31, 2024. Drivers can buy a policy at current prices and use insurance for the next year.
To avoid excessive financial burden, motorists can use online platforms to find the best deal by comparing different options.
Hotline.finance has a promo code ZAKON2025which provides a 10% discount on auto insurance from any insurance company in the catalog. Promotional code is valid until 12/31/2024 inclusive.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.