Skyrocketing Car Insurance Costs: A Threefold Increase Reported?
In Kazakhstan, the Financial Market Regulation and Development Agency has updated the rules governing mandatory auto insurance, effective from April 7, 2025. The change has sparked criticism from Deputy Elnur Beisenbayev, who alleges that rates have increased significantly for various vehicle types.
The new rules are said to have increased insurance rates for cars in various regions by 2-3 times: from 36,000 to 78,000 tenge in the regions, 112,000 tenge in the Nur-Sultan capital, and for motorcycles and scooters from 7,000 to 50,000 tenge.
Deputy Beisenbayev also raised concerns about unequal conditions for Kazakh and foreign drivers and regional penalty sanctions for accidents, deeming it a violation of constitutional rights.
However, the Agency disputes claims of sharply increased basic rates, emphasizing that the 1.9 MCI (7,471 tenge) rate, unchanged since 2007, remains constant. The actual policy cost depends on the "bonus-malus" system, factoring in driving experience, accident history, and the region where the car is primarily used.
Beginners, without insurance history, now fall under class A, inheriting a loss rate above 100%. After an accident-free year, they can move to class 3, halving their rate. Conversely, experienced drivers with a clean history may receive more substantial discounts, like 18,048 tenge for a light vehicle in Almaty at class 13.
The Agency clarified that class 13 is applicable only to temporarily imported vehicles (loss rate of 15-20%), not citizenship. Upon registering a car in Kazakhstan, foreigners face the same conditions as local drivers.
Higher insurance rates are tied to risks, as novice drivers face initial penalties of 31,087 tenge, potentially reducing to 17,271 tenge following an accident-free year.
The Agency maintains that these changes comply with international standards in countries like Germany, the USA, and Canada, where insurance rates are based on risk levels. However, concerns persist about the impact on budgets, particularly for specific categories such as young drivers and scooter couriers.
Those interested in automotive news can follow our Instagram and TikTok for updates. Controversial comments from citizens suggesting insurers should compensate victims based on the price of new parts, hold a competition to test traffic knowledge, or provide insurance online, were met with varying reactions among industry experts and wider public.
What are the concerns of Deputy Elnur Beisenbayev regarding the updated rules for mandatory auto insurance in Kazakhstan? Finance-related concerns include accusations of significant increases in insurance rates, unequal conditions for Kazakh and foreign drivers, and regional penalty sanctions for accidents, which Deputy Beisenbayev deems a violation of constitutional rights. Additionally, he expresses apprehension about the potential impact of these changes on budgets, particularly for specific categories such as young drivers and scooter couriers.
