A driver who is not included in the MTPL policy will receive a fine when stopped by a traffic police inspector, and in the event of an accident, the insurance company will refuse to pay if closed insurance is issued. This is why car owners with extensive driving experience often consider open policy, which allows anyone with a valid license of the appropriate category to drive. This insurance format completely eliminates the need to make changes to the document every time you change the driver or transfer the car to a friend.
The cost of drawing up such an agreement directly depends on the base tariff and increasing factors, which can make the final amount significantly higher than the standard one. Unlike closed insurance, where the price is formed individually for each registered person, the maximum values of the age and length of service coefficients are applied here. This means that even if the car is driven by an experienced driver, the calculation will still be made according to the most “expensive” parameters available for this type of policy.
The difference between open and closed types of insurance lies not only in the price, but also in the recovery procedure KBM (bonus-malus coefficient). If there are restrictions on the number of persons, the driving history of each specific driver affects the discount, while in the unrestricted mode (without restrictions) a fixed high coefficient is applied. Understanding these nuances will help you avoid overpayments and legal problems when operating a vehicle.
The essence of an open OSAGO policy and the legislative framework
Open insurance, legally called a compulsory motor liability insurance agreement without limiting the number of drivers, is a full-fledged financial instrument for protecting civil liability. According to Federal Law No. 40-FZ, such a policy gives the right to drive a vehicle to any person holding a valid driver's license. In the column “Limitation on the number of drivers,” in this case, the “No limit” checkbox is placed, and the fields for entering specific names remain empty.
The main feature of this product is that it is not tied to specific individuals at the time of concluding the contract. This creates a unique situation where insured event is recognized as such regardless of who exactly was driving at the time of the accident. The law does not require the owner of a car to notify the insurance company that the car will be used by a neighbor, relative or employee if there is a corresponding note on the policy.
However, it is worth remembering that the absence of restrictions does not mean permissiveness. The person driving the car must still have a license corresponding to the category of the vehicle. If a person is driving without a license or with an expired license, this will become the basis for recourse claim by the insurance company, which will pay the victim, but then demand the full amount of expenses from the offender.
⚠️ Attention: Having an open policy does not relieve the driver from the need to carry the original or electronic version of the document. Lack of insurance in the database when checking through an inspector's tablet will result in penalties.
It is important to note that the transition to this insurance format is often due to corporate needs or the specifics of using a car in a family with several drivers of different ages. The legislation of the Russian Federation clearly regulates the use of increasing coefficients for such cases, making them mandatory for all market participants.
Key benefits for car owners
The main advantage of signing a contract without restrictions is maximum flexibility in using the vehicle. The car owner can transfer the keys to any authorized person without having to visit the insurance company's office or submit online applications to make changes. This is especially true for situations when you need urgent driving of a car or assistance in driving from friends.
The second important aspect is the absence of bureaucracy when changing drivers. Owners closed policies you have to constantly monitor who exactly will drive the car and promptly enter the data of new drivers. In open insurance, this stage is completely eliminated, which saves time and nerves. In addition, this is an ideal option for organizations where the vehicle fleet is used by shift personnel or couriers.
- 🚗 Versatility: Anyone with a license can get behind the wheel, making it ideal for rental or family use.
- 📄 No paperwork: There is no need to apply to change the list of persons admitted to management.
- 🛡️ Payment guarantee: The insurance company will not be able to refuse compensation to the victim, citing the fact that the driver is not included in the policy.
Another hidden advantage is the ability to use the car for commercial purposes, for example, for taxis or cargo transportation, if this is permitted by the terms of the contract and the class of the vehicle. Although tariffs for such cases may differ, the very principle of “openness” allows you to legally attract different drivers to perform tasks.
If you are planning to sell a car, an open policy can be an additional advantage for the buyer, since he will not have to immediately take out new insurance for a trip to the traffic police.
Financial disadvantages and high cost of registration
The main and most noticeable disadvantage of open insurance is its high price. The cost of such a policy can exceed the price of a closed analogue by 1.5–2 times or more. This is due to the application of the maximum coefficient for an unlimited number of drivers, which in current tariffs is 1.87 (the value may vary depending on the year and region, but is always one of the highest).
When calculating the cost, the system ignores the actual experience and age of the actual drivers, applying the worst-case scenario. Even if the car is driven by only one experienced driver with 20 years of experience, but the policy is issued “without restrictions,” the calculation will still be made at the rate for young and inexperienced drivers. This makes such a product economically unprofitable for single drivers or families with 1-2 people with a good history behind the wheel.
| Comparison parameter | Closed insurance | Open insurance |
|---|---|---|
| Number of drivers | Limited to list | No restrictions |
| PIC coefficient (age/experience) | Individual for everyone | Maximum (1.87) |
| Policy cost | Depends on the registered persons | Maximum high |
| Need for change | Required when adding | Not required |
In addition, high tariffs make this type of insurance less attractive for owners of budget cars, where the cost of the policy can be a significant part of the market price of the car itself. In such cases, an overpayment may not be justified, especially if the risk of transferring the steering wheel to third parties is minimal.
Impact on KBM and driving history
The issue of preservation and restoration bonus-malus coefficient (BMC) is one of the most difficult when open belaying. When taking out a policy without restrictions, a fixed coefficient is applied, which does not depend on the accident-free driving of a particular driver in previous years. In fact, at the time such an agreement is in effect, your personal discount is “frozen” or not fully taken into account when calculating the price.
There is a common misconception that when the belay is open, the CBM burns out completely. In fact, the owner's driving history is stored in the database RSA (Russian Union of Auto Insurers). However, while the policy is in force without restrictions, it will not be possible to apply the accumulated discount to a new calculation, since the base rate with an increasing coefficient is used.
The situation changes if it happens insured event. If you have an open policy, if an accident occurred due to the fault of the driver driving the car, the owner’s KBM coefficient may be increased in the next period. This means that it will not be the driver’s personal vehicle (which might not have been entered), but the history of the car owner that will “rattle.” This is an important nuance that is often forgotten.
When switching from an open policy to a closed one, the previously accumulated discount (BMR) of the owner is restored and applied in the calculation if there were no accidents due to his fault during the period of open insurance.
To restore the correct discount after a period of using open insurance, you may need to check the data in the PCA database and submit an application for a revision of the coefficient. Insurance companies don't do this automatically, so the owner needs to be proactive.
Comparison with closed insurance: what to choose
The choice between an open and closed policy depends on your specific life situation and plans for using the car. Closed insurance, where a specific list of persons is included, is beneficial when the circle of drivers is defined and stable. In this case, individual age and length of service factors can be applied, which often results in significant savings.
The open option becomes uncontested when the car is used as a “family carriage” with frequent changes of drivers or is owned by an organization. This solution is also suitable for cases where the owner plans to give the car for long-term use to a person whose details are not exactly known or may change (for example, a distant relative, friend).
- 📉 Savings: A closed policy is almost always cheaper if there are 1-3 experienced drivers on the roster.
- 👥 Circle of people: If there are more than 4-5 drivers or they change frequently, it becomes technically difficult and expensive to include everyone in a closed policy.
- 🔄 Dynamics: An open policy does not require action when changing the driver, a closed policy requires changes.
It is also worth considering the psychological aspect: an open policy gives a feeling of security and freedom of action. You don't worry that a friend who decides to take your car to the wash will receive a fine. However, this freedom comes with a high financial price, which each driver evaluates independently.
⚠️ Attention: When selling a car, an open policy is not automatically transferred to the new owner. The buyer will have to take out new insurance even if your policy has not yet expired.
Registration procedure and required documents
Registration of a policy without limiting the number of drivers is available both at the offices of insurance companies and through online services. The process is almost identical to the standard procedure, with the exception of the stage of registering drivers. You will need a standard package of documents: the owner’s passport, PTS or STS of the car, a diagnostic card (if the car is older than a certain age) and a driver’s license (at least the owner’s for identification).
When filling out an application, in the box asking you to select the type of insurance, you must select the “No limitation” option or similar wording. The system will automatically apply the appropriate tariff coefficients. It is important to carefully check the total amount before paying, as the difference with a closed policy can be significant.
☑️ Documents for registration
After payment, the policy immediately enters the unified RSA database. The electronic version can be downloaded and printed, but having a paper copy is not strictly necessary; just show the file on your smartphone screen. However, to avoid technical communication problems for inspectors, having a printed copy remains good form and practice.
Is it possible to add a driver to an open policy later?
Technically, there is no need to include drivers in an open policy, since it already allows driving by any person. But if you decide to switch to a closed format, you will have to terminate the current contract and enter into a new one.
Frequently asked questions (FAQ)
Is it possible to get my money back if I took out open insurance but used the car alone?
Part of the cost of the policy can only be returned upon termination of the contract. Termination is possible upon sale of the car, disposal or death of the owner. Simply because you “did not exercise” the right to allow other drivers, no refund will be issued. When selling, the amount for the unused period is returned minus 23% (3% RSA + 20% company expenses).
Does open insurance affect your car tax?
No, the presence or absence of restrictions in the MTPL policy does not in any way affect the calculation of transport tax. The tax is calculated based on engine power, region of registration and year of manufacture of the car, as well as preferential categories of the owner.
What happens if a person without a license gets behind the wheel of an open insurance?
The insurance company will pay compensation to the injured party because the policy covers the owner's liability. However, after payment the insurer has the right to charge recourse claim to the driver without a license (and in some cases, to the owner who let him drive) for the full amount of damages paid.
How can I check if my open insurance is valid?
You can check the status of the policy on the official website of the RSA (Russian Union of Auto Insurers) in the “Checking OSAGO policies” section. It is enough to enter the series and form number, or the car’s VIN code and state number. The system will show the status of the contract, the insurance company and the start/end dates.