The cost of international car insurance “Green Card” in Ukraine will rise significantly from 15 March. This is reported by the Motor (Transport) Insurance Bureau of Ukraine, Komersant ukrainskyi reports
It is noted that the growing popularity of the Green Card international insurance type has influenced not only the increase in the number of contracts issued, but also the increase in the number of insured events under such contracts abroad (accidents involving Ukrainian drivers).
The main reasons for the tariff increase:
- Increase in the amount of the average insurance payment. In 2023, the average amount of insurance indemnity under Green Card contracts increased by 20% to EUR 3,085.61. In 2022, this figure was EUR 2,562.92.
- Increase in the number of claims resulting from insured events caused by Ukrainian drivers abroad. A sharp increase in the number of Ukrainian vehicles abroad, as well as an increase in the period of their stay, led to an increase in the number of accidents involving them. Prior to the full-scale invasion, the number of settled claims from foreign drivers who suffered road accidents caused by Ukrainian drivers averaged 5,500 cases per year; in 2022, this figure increased by 45% to 7,693 claims. In 2023, the total number of such claims was 15,122.
- Changes in the structure of the insurance portfolio by type of vehicle. In 2022-2023, the share of passenger cars in the structure of the insurers’ insurance portfolio increased. This type of vehicle is usually involved in road accidents more often, which significantly affects the loss ratio under insurance contracts.
- Customers are more likely to enter into long-term insurance contracts. While previously most Green Card insurance contracts were concluded for a period of 15 days, the share of contracts with a 12-month term is now growing.
- Insurers’ need for sufficient financial support for insurance reserves under international Green Card insurance contracts. In European countries, the limits of compensation to victims of road accidents reach millions of euros, and in some countries they are unlimited. For example, if a road accident occurs in Poland, the limits of compensation are EUR 5.21 million for life and health and EUR 1.05 million for property. Accordingly, due to constant inflationary factors and an increase in the frequency of insured events, insurers need to create sufficient financial resources to properly fulfil their obligations.
New tariffs
Starting from 15 March, the prices for an ordinary passenger car will be as follows
- for 15 days – UAH 1,120 (previously UAH 1,002)
- for 1 month – UAH 1,783 (previously UAH 1,595)
- for 3 months – UAH 4,812 (previously UAH 3,789)
- for 1 year – UAH 12,446 (previously UAH 8,769).