Auto Insurance In Russia: What You Need To Know

Yes, Russians have auto insurance. Since 2003, every car driving in the Russian Federation must have an insurance policy covering third-party liability, which covers the driver if somebody makes a claim for vehicle damage, personal injuries, or legal costs against them. However, as of June 2023, Russia no longer participates in the international Green Card system, which allowed drivers to use their motor insurance policies across multiple countries. This means that Russian car insurance is no longer valid in Europe, and European car insurance is no longer valid in Russia.

Russian car insurance is not recognised in Europe

The Green Card is an international certificate of valid motor liability insurance. Before the agreements expired, motorists from the EU, Great Britain and Switzerland could use the Green Card to prove their motor vehicle liability insurance in Russia, as long as Russia was explicitly mentioned on the card and was not crossed out. The card could be obtained free of charge from motor vehicle insurers.

Having a motor liability insurance policy is obligatory everywhere in Europe, including Russia and Belarus. However, insurance policies' cover and compensation vary significantly between countries. For example, in Finland, motor liability insurance covers the personal injuries of all parties without an upper limit. In contrast, Russian motor liability insurance policies have a cap of about €5,500 on compensation per person, and an even lower cap for property damage.

When an insurance policy is taken out from a Russian company, any loss events are processed with local parties, and any compensation is paid in roubles to a Russian bank account. The Finnish Motor Insurers' Centre, for example, does not process any road accidents that take place in Russia, even if a Finnish vehicle is involved.

The change in the Green Card collaboration has no effect on the cover of those who suffer from a traffic accident within Finland. The Finnish Motor Insurers' Centre can be contacted regarding any damage caused in Finland by a vehicle from outside the EEA, including Russian vehicles.

Motor liability insurance is mandatory in Russia

The coverage and compensation provided by motor liability insurance policies vary significantly between countries. In Finland, for example, motor liability insurance typically covers personal injuries for all parties involved in an accident without any upper limit. In contrast, Russian motor liability insurance policies have a cap of approximately €5,500 per person for compensation, with even lower limits for property damage. This disparity in compensation levels highlights the importance of understanding the local insurance requirements and policies when driving in a foreign country.

The change in insurance regulations has had a significant impact on cross-border travel, particularly for Russian and Finnish citizens. Russian vehicles used in Finland and other European countries were previously covered by the Green Card agreement, but now require a separate frontier motor liability insurance policy. Similarly, Finnish motorists travelling to Russia will need to obtain a local insurance policy, which may include some unpleasant surprises in the terms and conditions. The Finnish Ministry of Foreign Affairs has even recommended avoiding all travel to Russia due to these insurance complexities.

The expiration of the Green Card agreements between Russia and the EU has also led to uncertainty about how to handle accidents involving uninsured Russian vehicles in Europe. In Italy, for example, accidents with uninsured vehicles are settled through a 'guarantee fund', which is funded by a small portion of each car insurance policy premium. This additional bureaucratic step further complicates the process of dealing with road incidents involving Russian-insured vehicles in Europe.

Russian insurance policies have a cap on compensation

As of June 2023, it has become significantly harder to drive a car to Russia. This is due to the expiry of the international Green Card agreements on motor liability insurance, which allowed motorists to use their insurance policies across borders. Now, Russian insurance policies must be purchased locally.

Russian motor liability insurance policies have a cap of about €5,500 on compensation per person, with an even lower cap for property damage. This is in stark contrast to Finland, for example, where motor liability insurance covers the personal injuries of all parties without any upper limit.

Janne Jumppanen, director of the Finnish Motor Insurers' Centre, warns that:

> [...] in Russia, the motor liability insurance does not compensate for personal injuries caused by the driver responsible for an accident.

When an insurance policy is taken out from a Russian company, any loss events are processed with local parties, and compensation is paid in roubles to a Russian bank account.

The differences in insurance policies between countries can result in unpleasant surprises for motorists. For instance, the Finnish Ministry of Foreign Affairs recommends avoiding all travel to Russia and Belarus.

The Green Card agreement between Russia and the EU has expired

Yes, Russians do have auto insurance. In fact, having a motor liability insurance policy is obligatory in Russia. However, as of June 1, 2023, the Green Card agreements between Russia and the EEA countries, Switzerland, and the United Kingdom have been suspended. This means that Russian car insurance is no longer valid in these countries and vice versa.

The Green Card is an international certificate of valid motor liability insurance, established in 1949 in Europe. It facilitates traveling abroad with a car, as drivers do not need to obtain separate local insurance in the countries included in the system. Around 377,666 international accidents per year were covered in Europe by the Green Card system in 2016.

The suspension of the Green Card agreement between Russia and the EU has significant implications for motorists. Motorists traveling between Russia and the affected countries now need to obtain frontier insurance or a local insurance policy. This change may cause inconvenience and increased costs for those who frequently travel between Russia and the EU for work or other purposes.

It is important to note that the Green Card agreement suspension does not affect all countries equally. For example, there is still some cross-border travel between Russia and northern Norway. Additionally, some countries in the EU, such as France and Belgium, have kept the Green Card as their national/domestic insurance system, making it a compulsory requirement for motorists there.

Russian insurance must be purchased at the border

As of June 2023, it is no longer possible to use a foreign motor insurance policy in Russia. This means that Russian insurance must be purchased at the border. The Finnish Motor Insurers' Centre does not process any road accidents that take place in Russia, even if a Finnish vehicle is involved. This is also the case for all other foreign insurance providers.

The Russian authorities have stated that insurance policies can be purchased at points of sale within half a kilometre of the border. However, it has not been possible to confirm the existence of such points of sale near the border. The insurance policies are not sold online.

The process of obtaining a Russian insurance policy is as follows: after crossing the border, you must acquire a motor liability insurance policy from a local operator. The price is standardised, and the insurance cover is as good as that of a Finnish liability insurance policy. Once you have purchased the insurance, any loss events will be processed with local parties, and any compensation will be paid in roubles to a Russian bank account.

It is important to note that Russian motor liability insurance policies have a compensation cap of about €5,500 per person and a lower cap for property damage. This is significantly lower than the compensation offered by insurance policies in many other countries. For example, in Finland, motor liability insurance covers the personal injuries of all parties without an upper limit.

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