VHI in a car loan: what is it, why do banks impose it and how not to overpay

You took out a car loan, but the bank manager insists on applying for voluntary health insurance? Or are you already paying for this insurance, but don't understand what it covers or how to use it? This article will break down all the nuances voluntary health insurance in a car loan - from legal subtleties to ways to save money.

Let’s immediately dispel the myth: VHI in a car loan is optional service, but banks often present it as an inevitable part of the transaction. In practice, cancellation of the policy can lead to an increase in the loan rate or even refusal of the loan. We will explain why this happens, what risks are covered by insurance, and how to avoid falling into the traps of creditors. We’ll also show you how to check whether unnecessary options have been imposed on you under the guise of a “mandatory package”.

In the article you will find:

• 🔍 What is VHI in a car loan? and how does it differ from CASCO or OSAGO
• 💰 How much does it cost policy and what its price depends on (spoiler: the driver’s age and experience have a stronger influence than the car brand)
• ⚖️ Is it legal to impose insurance and how to refuse it without consequences
• 🚗 Real cases: when VHI saved you from debt, and when it became a useless waste

1. VHI in a car loan - what is it in simple words

VHI (voluntary health insurance) in the context of a car loan, it is a policy that covers the costs of treatment of the borrower or his passengers in the event of an accident. Unlike OSAGO (which insures liability to other road users) or CASCO (insures the car itself), VHI focuses exclusively on people’s health.

An important nuance: banks often confuse terms and offer VHI under the guise of life and health insurance of the borrower (SLZ). These are similar but not identical products. Classic VHI covers:

• 🏥 Inpatient treatment after an accident
• 💊 Medicines and rehabilitation
• 🚑 Evacuation of victims
• 🦷 Dentistry for injuries (in some tariffs)

But the SLZ usually also includes payment to the bank of the balance of the loan if the borrower becomes disabled or dies. In 80% of cases, banks impose SLZ, and not pure VHI - this allows them to minimize the risks of loan non-repayment.

2. Why banks insist on VHI: real reasons

On the surface, everything is simple: the bank cares about your health. In fact, the motives are more prosaic:

Reason 1. Reducing credit risks. If something happens to you, the insurance company will pay off the debt to the bank. For example, upon the death of the borrower Sberbank or VTB receive payment from the insurer and do not incur losses. For the bank this is win-win: he has already received interest on the loan, and transferred the risk of default to the insurance company.

Reason 2. Commissions from insurance companies. Banks often have partnership agreements with insurers (for example, RESO-Garantiya or Ingosstrakh) and get 15–30% from the cost of the policy in the form of bonuses. The more expensive the insurance, the greater the bank's profit.

Reason 3. Psychological pressure. Managers are trained to use phrases like:

• 🗣️ “They won’t approve a loan without insurance” (false if we are talking about voluntary health insurance)
• 🗣️ "This is a requirement of the Central Bank" (not true - the Central Bank regulates only compulsory motor liability insurance)
• 🗣️ "The rate will increase by 5% without a policy" (may be true, but not always)

⚠️ Attention! If a bank refuses a loan due to lack of voluntary health insurance, this is a violation of the law No. 353-FZ "On consumer credit". Life/health insurance cannot be a mandatory condition for issuing a car loan (unlike CASCO, which banks have the right to require for new cars).

3. How much does VHI cost on a car loan: calculations based on real examples

The cost of the policy depends on:

• 👨 Borrower's age (the older, the more expensive)
• 🚗 Car cost (indirectly affects the loan amount)
• 📅 Loan term (longer period - higher price)
• 🏥 List of risks (basic vs premium with chronic disease coverage)

Approximate tariffs in 2026 (for a man 35 years old, loan for Kia Rio 2023 for 3 years):

Insurance company	Policy cost (RUB/year)	What does it cover?	Franchise
RESO-Garantiya	18 000	Treatment, disability, death	No
Ingosstrakh	22 500	+ Rehabilitation + dentistry	5,000 rub.
AlfaInsurance	15 000	Only treatment and death	10,000 rub.
SOGAZ	20 000	Full package + psychologist	No

Average cost of VHI/SL for a car loan - 1–3% of the loan amount per year. For example, with a loan of 1.5 million rubles, you will pay RUB 15,000–45,000/year. But there is a life hack:

4. How to refuse voluntary health insurance on a car loan without consequences

You can refuse, but you need to act wisely. Here are the step-by-step instructions:

1. Check with the manager whether insurance is required under the loan agreement|2. Ask the bank for a written refusal to issue a loan without VHI (if they refuse)|3. Apply to another bank (for example, Tinkoff or Raiffeisen often do not require SLP)|4. If the bank agrees to issue a loan without insurance, but increases the rate, compare the overpayment of interest and the cost of the policy-->

Legal grounds for refusal:

• 📜 Article 935 of the Civil Code of the Russian Federation: life/health insurance is voluntary.
• 📜 Letter of the Central Bank of the Russian Federation No. IN-014-45/56 of 2016: banks do not have the right to impose additional services.
• 📜 Resolution of the Plenum of the Supreme Council No. 20 of 2019: Linking a loan to insurance is an unacceptable condition.

If the bank is stubborn, use these phrases (record the conversation with a voice recorder):

"According to Part 2 of Article 7 of Federal Law No. 353-FZ, you do not have the right to refuse a loan due to the lack of voluntary insurance. Please provide a written refusal with justification."

Alternative option: take out a policy for a minimum period (1 year), and then return the money during the cooling period (14 days). More about this in the next section.

5. Cooling off period: how to get money back for voluntary health insurance

Since 2018, it has been operating in Russia "cooling period" for voluntary insurance - 14 calendar days from the moment of payment of the policy. During this period you can terminate the contract and return 100% cost, even if you have already received a loan.

How it works:

1. Write an application for termination (a sample can be downloaded from the Central Bank or insurance website).
2. Send it by registered mail with acknowledgment or deliver it in person (with a receipt stamp).
3. Wait for your money back (by law - up to 10 days).

Important: the bank does not have the right to fine you for refusing insurance after issuing a loan. If the rate has increased due to the policy, it should recalculate to a lesser extent. Case study:

Real case of money back

The client took out a car loan in VTB for 1.2 million rubles with an SLZ policy for 24,000 rubles/year. After 5 days he canceled the insurance and returned the money. The bank tried to leave the rate at 12.9% (with a policy it was 9.9%), but after a complaint to the Central Bank it reduced it to 10.5%. Total savings - 48,000 rubles. for 3 years of loan.

⚠️ Attention! If you return money for voluntary health insurance, the bank may require you to CASCO for a car (if this was a condition of the loan agreement). This is legal - CASCO for a car loan is often mandatory.

6. When is VHI really necessary for a car loan?

Despite the imposition, there are situations when the policy is justified:

Case 1. You are the only breadwinner in the family. If something happens to you, the insurance will cover the loan, and your loved ones will not be left without a car and with debts.

Case 2. You have chronic diseases. Some policies cover exacerbations (eg. AlfaInsurance includes treatment of cardiovascular diseases in the tariff).

Case 3. You take out a loan for a long term (5+ years). The risk of an accident or illness increases, but the amount of debt remains high.

Calculation example: if you take out a loan for Toyota Camry for 5 years for 2.5 million rubles, and your salary is 80,000 rubles/month, then if you are disabled, it will be difficult to repay the loan. Polis SLZ for 30,000 rubles/year in this case is cheaper than the risk of losing the car.

7. Top 5 mistakes when applying for VHI in a car loan

Even if you decide to take out a policy, it’s easy to run into pitfalls. That's it it's impossible do:

• 📄 Sign blank forms. Managers sometimes ask for signatures on blank documents, and then add unnecessary options.
• 💸 Pay in cash. All payments must be made by bank transfer - this makes it easier to prove the fact of payment in case of disputes.
• 📅 Ignore deadlines. If you miss the cooling off period, it will be almost impossible to get your money back.
• 📑 Don't read exceptions. The policy may have a clause that an accident while intoxicated is not covered (even if you were not drunk, but the second driver was).
• 🔄 Automatically renew the policy. Banks often enable auto-renewal - disable this option!

Case Study: Client Rosselkhozbank I signed up for voluntary health insurance for 18,000 rubles, but did not notice that the contract included the option “job loss insurance” for +7,000 rubles. I discovered this only a year later, when the renewal notice arrived. It was not possible to return the money - the cooling period has expired.

8. Alternatives to VHI: how to save on insurance

If the bank insists on insurance, but you don't want to overpay, consider these options:

Alternative	Pros	Cons
Take out a policy with another company	20–40% cheaper	The bank may refuse (but this is illegal)
Select minimum tariff	Save up to 50%	Covers death/disability only
Register for a co-borrower	If he is younger/healthier, the policy is cheaper	Not all banks agree
Use endowment insurance	Part of the premium is returned after 3–5 years	More expensive by 10–15% per year

Life hack: some banks (for example, Opening) allow you to issue a policy not for the full amount of the loan, but only for 70–80%. This reduces the cost by 20–30% with minimal increase in risks.

Another way to save is to register group insurance through the employer (if such an option exists). For example, in Sberbank for corporate clients there are discounts up to 30% for policies.

FAQ: Frequently asked questions about VHI in a car loan

🔹 Is it possible to get a car loan without voluntary health insurance in 2026?

Yes, but the bank can increase the rate by 1–3% or request to issue CASCO. Refusal of a loan due to lack of voluntary health insurance is illegal - complain to the Central Bank (form on the website www.cbr.ru).

🔹 What to do if the bank imposed VHI by fraud?

1. Write a claim to the bank demanding to terminate the insurance contract and return the money.

2. If they refuse, file a complaint with Financial Ombudsman or Rospotrebnadzor.

3. If the claim amount is up to 1 million rubles. You can go to court without state fees (Article 17 of the Law “On Protection of Consumer Rights”).

🔹 Does VHI cover the treatment of passengers if I am at fault for an accident?

Depends on the tariff. Basic policies cover only the borrower. In order for the insurance to apply to passengers, you need to purchase an extended tariff (for example, “Family Protection” in Ingosstrakh). The cost of such a policy is higher by 40–60%.

🔹 Is it possible to return money for voluntary medical insurance a year after registration?

No, the cooling off period is only 14 days. After this, the money can only be returned if the loan is repaid early (and not always). An exception is if the insurance company violated the terms of the contract (for example, refused to pay without reason).

🔹 Does VHI affect the approval of a car loan?

Formally, no - the bank does not have the right to refuse due to the lack of voluntary insurance. But in practice, managers may “forget” to send your application for consideration or artificially lower the scoring score. To avoid this, apply to several banks at the same time.