OSAGO payouts hit records, insurers prepare price hikes

Almost 144,000 OSAGO insurance claims related to vehicle damage in 2025 required payouts exceeding the property damage limit of 400,000 rubles (approximately $4,000 at current rates). A year earlier, 139,000 such cases were recorded, reflecting an increase in share from 7.03% to 8.04%.

The situation with compensation for harm to life and health appears even more acute. In 37.47% of cases, or 1,686 payouts, amounts exceeded the maximum threshold of 500,000 rubles (about $5,000).

Experts cite the sharp increase in the cost of parts and repairs, the aging vehicle fleet, and the presence on the roads of cars with expensive components as the main reasons for this trend.

In connection with this, insurers and the Bank of Russia are negotiating to raise the limits. In particular, an increase in the maximum payout for harm to life and health from 500,000 to 2 million rubles (about $20,000) is being considered. According to estimates from the Russian Union of Auto Insurers (RSAI), this could lead to an increase in the average cost of an OSAGO policy by 700–1,000 rubles (approximately $7–$10).

The average insurance payout for traffic accidents has increased from 72,000 to 101,000 rubles (from about $720 to $1,010) since 2022, or almost 1.5 times. At the same time, there is a huge gap between insurers« »reference« prices and actual market rates, especially for original parts. For example, original parts for brands like Mercedes or Chery can cost 2-4 times more than the base price indicated in the reference guide.

The age composition of the vehicle fleet exacerbates the overall picture. As of 2025, there were 47.9 million cars in Russia, of which more than 62.5% are over 12 years old. For comparison, ten years ago, the share of such cars was almost twice lower at 48.9%.