Payments for compulsory motor third-party liability insurance in Ukraine increased in 2025: by how much and why

The compulsory motor third-party liability insurance market in Ukraine is experiencing a noticeable surge: payouts are increasing, policy costs are changing, and digital services are becoming the new standard for drivers. Find out how much insurance payouts have increased and how these changes will affect drivers in the near future

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The MTPL market in Ukraine in 2025 is showing the most significant changes in recent years. The increase in repair costs, updated legislation, and the transition to digital services have led to a significant increase in insurance payments. According to data from the MTIBU, insurance companies paid out more than UAH 4.5 billion in January-September 2025, settling more than 108,000 claims from victims. Compared to last year, compensation has increased by almost a third, and the average payout has increased to UAH 42,000. This reflects both the deterioration of road conditions and the rising cost of the repair process itself.

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What is the reason for this?

According to Oleksandr Bernatsyuk, Chairman of the Board of the Motor Transport Insurance Bureau of Ukraine, the insurance market is seeing an increase in the frequency of losses and a significant increase in the average loss. This is mainly due to higher prices for spare parts and repairs, which are putting pressure on tariffs, forcing insurance companies to strengthen their financial stability while keeping policy prices at an acceptable level. An additional factor in the growth of payouts was the gradual replacement of ‘old’ MTPL contracts with updated ones with increased liability limits.

The increase in the cost of repairs also led to an increase in the average insurance premium. In 2025, it exceeded three thousand hryvnias — twice as much as a year earlier. The price change was influenced not only by market conditions, but also by new requirements for settlement processes, which required additional resources from insurers. Despite this, the sector is showing resilience and continues to invest in improving customer services.

One of the key changes of the year was the introduction of direct settlement, thanks to which victims receive payments from their insurer. This has significantly reduced the time required for consideration: a process that previously could take two months now takes an average of four weeks. At the same time, the network of partner service stations is expanding, where drivers can have their cars fully repaired without complicated bureaucratic procedures, and the digitisation of processes is intensifying.

In 2025, almost all MTPL contracts are concluded online — the share of electronic policies has reached 99.7%. This transition increases market transparency, eliminates the risk of counterfeiting and facilitates regulatory control. This is particularly noticeable against the backdrop of an overall decline in the number of contracts concluded: even with a decline in sales, the market is becoming more technological and efficient.

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Europrotocol has become more popular

Europrotocol also continues to gain popularity. More and more drivers are filing accident reports themselves, which saves a significant amount of time. In the first nine months of 2025, more than 48,000 cases were settled through Europrotocol, and the amount of payments exceeded UAH 1.3 billion. The growth in interest is explained by the absence of restrictions on the amount of compensation: now it is determined within the framework of the insurance amount under the contract, which in new policies reaches UAH 250,000.

Insurance companies that lead in terms of the number of payments and premiums collected have maintained their positions, while some market participants have lost the right to conclude MTPL agreements due to non-compliance with the requirements of the Motor Transport Insurance Bureau of Ukraine. This underscores the state's policy of strengthening control and gradually improving service quality.

Despite increased losses and the rising cost of repairs, the MTPL market continues to adapt to new realities. Insurance reforms, digitalisation and the expansion of services are creating a more flexible and customer-oriented system in which speed of settlement, transparency of processes and accessibility of electronic solutions are becoming key advantages. 2025 shows that the Ukrainian motor insurance market is entering a phase of qualitative change, creating a higher level of financial protection for all road users.

Reminder! In order to successfully complete vehicle registration procedures, the representative must have duly executed powers of attorney and confirmed authorisation. Find out what documents are required from individuals and legal entities and what exactly is needed for quick car registration.

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