Prices are rising! This is what drivers need to know about car insurance in 2025

Prices are rising! This is what drivers need to know about car insurance in 2025

In 2025, car insurance prices in Ukraine have changed significantly. These price increases resulted from new price regulations and healthy competition in the market. Car insurance remains compulsory insurance, as driving a vehicle without such insurance is prohibited in Ukraine. It covers drivers' liability for damage to other road users, but does not cover their own losses in self-inflicted accidents. Loud Visit Ukraine The cheapest car insurance for vehicles with an engine capacity of up to 1.6 liters in Kiev could be around 5,000 UAH; In smaller cities the price is often lower.

Car insurance pricing is influenced by various factors. These include, among other things, the vehicle type, engine size, where the vehicle owner lives and specific discounts for certain groups, such as combat participants or people with disabilities. From 2025, insurance companies will now be able to set their own prices, which has increased the price range between different providers. This increase is primarily due to increased risks and losses.

Current changes in insurance law

A new law on motor vehicle liability insurance will come into force on January 1, 2025. This replaces the existing 2005 law and was updated by the Verkhovna Rada in 2024. The main reason for the changes is the adjustment of the insured amounts to the level of the EU countries as well as the modernization of the payment processes in the event of accidents, as stated by UNN reported.

The most significant changes include the abolition of the deductible, meaning drivers will no longer have to cover their own costs in the event of an accident. From 2025, new, higher insured amounts will apply: UAH 250,000 for property damage and up to UAH 500,000 for damage to health per injured person. These amounts take into account inflation and increasing repair costs. Further increases in reimbursement amounts are planned from 2026, particularly in view of Ukraine's possible EU membership.

Practical implications for drivers

The new payment limits and the abolition of the deductible have an immediate impact on drivers. While certain groups will continue to benefit from discounts, the changes are not expected to result in an across-the-board increase in premiums. Insurers set prices based on factors such as location, age, accident history and driving style. Drivers with many accidents may face a 50-70% price increase, while accident-free drivers can expect smaller price changes.

To simplify the purchase of car insurance, online platforms such as Visit Ukraine offer the advantage of speed and convenience. Drivers can compare and purchase quotes from different insurance companies in just a few minutes. In addition, paper policies will remain valid until 2026, before a transition to electronic policies is planned. A new direct claims settlement process aims to improve and speed up the compensation process.