Cost of motor vehicle insurance will increase - what changes await drivers in 2025

In 2025, the cost of motor vehicle insurance policies will increase.

This is provided for by new legislation, which comes into force this year, Ukrainian News Agency reports.

In May 2024, the Verkhovna Rada adopted a gradual increase and shortened the terms for paying insurance amounts for motor insurance.

The document provides for:

- a gradual increase in the amounts of insurance amounts (maximum amounts of insurance payments for car repairs from UAH 160,000 to UAH 250,000, for treatment of victims - from UAH 320,000 to UAH 500,000) to the amounts established in the countries of the European Union;

- the introduction of rapid guarantee payments to victims for bankrupt insurers before the Law comes into force (previously it took years, but it will be up to 90 days);

- introduction of direct settlement in all cases of road accidents in which damage is caused only to the vehicle, which will allow the injured person to apply for insurance payment to their insurer, even if the culprit is not insured;

- expansion of the application of the "Europrotocol" - registration of an application for insurance compensation in the event of a road accident without the participation of the police;

- electronic policies from 2026 - all policies will become exclusively electronic, which will facilitate their registration and control.

As the Ukrainian News agency earlier reported, in November 2022, the National Bank initiated the abolition of price regulation for civil motor vehicle insurance and the introduction of a European model of vehicle insurance.