Auto Insurance In Russia: What's The Law?

Driving in Russia is an experience, with slick highways and rocky mountain passes to navigate. If you're planning a trip to Russia, it's important to be aware of the country's insurance requirements. Since 2003, it has been compulsory for all drivers in Russia to have at least third-party liability insurance for all registered vehicles. This covers vehicle damage, personal injuries, and legal fees for third parties in case of an accident. While this is the minimum requirement, many drivers opt for extended or comprehensive coverage as the basic third-party policies have limited scope.

In addition to insurance, there are several other requirements for driving in Russia, including an International Driving Permit, a Russian visa, and specific equipment like headlamp converters and warning triangles.

Third-party liability insurance is the minimum legal requirement

Third-party liability insurance covers the costs of vehicle damage, personal injuries, and legal fees for third parties in any road incident where you are at fault. However, it is important to note that there are usually limits to the amount that companies will pay out, which is typically around 500,000 RUB per person. Due to this low threshold, many drivers in Russia choose to purchase more comprehensive insurance policies.

Basic third-party policies do not cover any costs associated with damage to your own vehicle or any deliberate damage you cause to others. As such, it is recommended that drivers opt for extended or comprehensive coverage to avoid having to pay out-of-pocket costs. Comprehensive insurance, also known as CASCO, covers damage to your own car in incidents where you are at fault, as well as in cases of fire or theft.

The cost of car insurance in Russia depends on various factors, including the type of insurance, the driver's age and experience, and previous claims history. Basic third-party liability insurance typically costs between 3,500 and 75,000 RUB per year.

It is important to note that insurance in Russia is regulated by the Central Bank of Russia (CBR), and all insurance providers must be members of the Russian Association of Motor Insurers (RAMI). When choosing a car insurance policy in Russia, it is recommended to consider factors such as company reputation, policy coverage, the claims process, international coverage, and ethics.

Comprehensive insurance offers additional protection

In Russia, comprehensive insurance, also known as CASCO, offers additional protection to drivers beyond what is provided by the compulsory third-party liability insurance. While the third-party insurance covers vehicle damage, personal injuries, and legal fees for third parties in an accident where the insured driver is at fault, it has limited coverage. Comprehensive insurance fills in these gaps by providing coverage for damage to the insured driver's own car in an at-fault accident, as well as in cases of fire or theft.

Comprehensive insurance is particularly attractive to expats in Russia, as the basic third-party insurance may not provide sufficient coverage for their needs. The additional protection offered by comprehensive insurance ensures that drivers are covered for a wider range of incidents. This type of insurance typically includes extras such as breakdown coverage and insurance for driving vehicles that don't belong to the policyholder. It is important to note that intentional damage is usually excluded from comprehensive insurance policies.

The cost of comprehensive insurance in Russia can vary depending on factors such as the insurance company, the driver's age and experience, and their claims history. While it offers more extensive coverage, the price range for comprehensive insurance is similar to that of third-party insurance, ranging from 6,000 to 75,000 RUB per year.

When choosing a comprehensive insurance policy in Russia, it is essential to consider factors such as the company's reputation, the coverage and exclusions of the policy, the claims process, international coverage options, and the insurer's ethics and sustainability practices. Additionally, some companies offer discounted rates for insuring multiple cars, which can be beneficial for those with multiple vehicles.

In summary, comprehensive insurance in Russia provides valuable additional protection for drivers, ensuring they are covered for a broader range of incidents and filling in the gaps left by basic third-party insurance. It offers peace of mind and can be tailored to drivers' specific needs, making it a popular choice for those seeking more comprehensive coverage.

Foreign insurance policies may not be accepted

Driving in a foreign country can be thrilling, but it is also important to be aware of the local laws and regulations. In the case of Russia, there are some specific requirements and considerations when it comes to auto insurance. While it is compulsory to have at least third-party liability insurance when driving in Russia, there are some important details to note about using foreign insurance policies in the country.

Firstly, it is essential to check the terms and conditions of your foreign insurance policy. In some cases, foreign insurance policies may not be accepted or recognised in Russia, especially if they are from a country that is not a part of the "Green Card" International Motor Insurance Card System. The Green Card system facilitates travelling with a car between participating countries without the need for separate local motor liability insurance. Russia has been a part of this system since 2009, so if your insurance is from a country within this system, you may not need additional local insurance. However, it is always good to confirm this with your insurance provider and ensure you have the proper documentation, as practices can vary.

Additionally, even if your foreign insurance policy is valid in Russia, there may be limitations to the coverage provided. For example, Russian motor liability insurance policies typically have a cap on compensation per person, which may be significantly lower than what you are used to in your home country. In the case of Finland, for instance, motor liability insurance typically covers the personal injuries of all parties without an upper limit, while Russian policies have a cap of around €5,500 per person. Therefore, it is crucial to understand the coverage provided by your foreign insurance policy in Russia to avoid any unpleasant surprises.

Moreover, it is worth noting that in Russia, you insure the vehicle rather than the driver. This means that you will need to name regular drivers on the policy, but other drivers with a valid license and additional coverage to drive other vehicles may also be able to legally drive your car. This is an important consideration if you plan to have multiple drivers during your time in Russia.

Finally, it is always recommended to have a valid insurance policy when driving in Russia, as driving without insurance can result in large fines. While some people have reported driving in Russia without insurance, it is not worth taking the risk. Instead, it is better to be prepared and ensure you have the necessary coverage before getting behind the wheel.

Russian insurance policies are not sold online

Car insurance has been compulsory in Russia since 2003. All vehicles must be insured with at least third-party liability insurance, which covers claims for vehicle damage, personal injuries, or legal costs. This basic level of insurance is limited in scope, so many drivers opt for extended or comprehensive coverage.

While Russia's insurance sector is growing, with nearly 500 billion rubles of premiums expected in 2022, Russian insurance policies are not sold online. This can be inconvenient for those who prefer the ease and speed of purchasing insurance digitally. Instead, insurance policies must be acquired from a local operator, with points of sale located near the border. This may be a particular inconvenience for motorists from Finland, who will no longer be able to rely on their Finnish motor liability insurance policies in Russia as of June 2023.

When purchasing a Russian insurance policy, it is important to note that any loss events will be processed with local parties, and compensation will be paid in rubles to a Russian bank account. The specific claims process varies between insurers, but typically, you will need to file a claim form and provide your insurance number, personal details, and information about the claim.

In addition to compulsory car insurance, other types of insurance available in Russia include health insurance, unemployment insurance, accident insurance, life insurance, and various forms of commercial insurance. However, very few types of insurance are legally obligatory, and a significant portion of the population has little to no insurance coverage.

Russian insurance payouts are in roubles

Car insurance has been compulsory in Russia since 2003, with all drivers needing a valid insurance policy for their registered vehicles. The minimum legal coverage is third-party liability insurance, which covers the costs of vehicle damage, personal injuries, and legal fees for third parties in any road incident where the driver is at fault. This basic coverage is limited, with a payout limit of around 500,000 roubles per person. As a result, many drivers opt for extended or comprehensive coverage to avoid out-of-pocket costs.

When taking out car insurance in Russia, you are insuring the vehicle rather than the driver. This means that regular drivers must be named on the policy, but other licensed drivers with additional coverage can also legally drive the insured car. Additionally, insurance in Russia is provided per vehicle, with most companies offering discounted rates for multiple cars.

Russian insurance payouts are made in the local currency, the rouble. This applies to all types of insurance, including car insurance, health insurance, and life insurance. For example, when an insurance policy is taken out from a Russian company for motor liability insurance, any compensation is paid in roubles to a Russian bank account.

The Central Bank of Russia (CBR) regulates all forms of insurance in the country, including car insurance. While car insurance is compulsory, other types of insurance, such as home insurance and health insurance, are optional.

Frequently asked questions