What will change for drivers in Ukraine in 2026?

In 2026, motor insurance in Ukraine will become fully electronic, and the rules for settling traffic accidents will become simpler and faster. Find out what changes in motor insurance will affect drivers, how direct settlement will work, and what services will appear in Diia

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2025 was a transformative year for the compulsory civil liability insurance (OSCPV) market. Throughout the year, the provisions of Law of Ukraine No. 3720-IX were gradually implemented, significantly changing approaches to auto insurance and bringing the Ukrainian MTPL market closer to European standards in terms of both the level of protection for victims and the quality of service for drivers. This was reported on the official website of the Motor Transport Insurance Bureau of Ukraine (MTIBU).

According to Alexander Bernazyuk, Chairman of the Board of the MTIBU, 2025 was a turning point for MTPL: thanks to the joint efforts of insurance companies, regulators, and professional associations, it was possible to integrate all the necessary provisions and raise the quality of motor insurance to European standards. The changes have made the system more understandable and customer-oriented, as well as strengthening the protection of victims of road accidents with fairer and more timely payments.

Transition to full digitalization of MTPL: only electronic contracts from 2026

One of the key steps was the digitalization of MTPL contracts, which was unconditionally supported by the MTIBU. According to Law No. 3720-IX, from 2026, all MTPL contracts must be exclusively electronic.

The market prepared for this transition back in 2025: as of December, 99.7% of MTPL contracts are concluded in digital format. As emphasized by the MTIBU, this significantly reduces the risk of policy forgery — in fact, to zero — and increases drivers' confidence in the auto insurance system.

To avoid confusion before trips or when filling out documents, it is important for drivers to check the validity of their policy and have it on their smartphone. To do this, it is convenient to take out car insurance online — in particular through Visit Ukraine, where you can quickly select and purchase MTPL without any paperwork.

Direct settlement will become the standard for all contracts

Starting in 2025, direct settlement became mandatory for all insurers operating in the MTPL market. The MTIBU administers the system and conducts mutual settlements between companies. Since the beginning of the year, the Bureau has also joined the direct settlement system: now victims can receive payments from the MTIBU through their insurer.

An important nuance of 2025 is the transition period. MTPL contracts concluded in 2024, which did not provide for direct settlement, were still in force on the market. Starting in 2026, all motor third-party liability insurance contracts will have a direct settlement option, and in most cases, victims will be able to receive payments directly from their insurance company.

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Free pricing: insurers determine the cost of the policy themselves

Another key change in 2025 is the introduction of free pricing. Under the new law, insurance companies have the right to determine the cost of MTPL independently for each client.

The MTIBU explains that this approach makes the insurance system more flexible and customer-oriented and encourages higher quality services. Even greater price personalization is expected in the coming years: insurers will be able to take into account driving history and other indicators, offering more favorable terms to drivers with a clean record.

New settlement rules: faster, without depreciation, and with repairs at a service station

In 2025, a number of important updates were introduced for drivers in the process of settling insurance claims:

● Reduction of settlement terms: from 90 to 60 days.

● Possibility of repair at a service station: insurers and the MTIBU can offer victims car repairs directly at a service station and provide options for implementation.

● Full payments: the application of the car depreciation coefficient when calculating payments and deductibles in contracts has been abolished, and insurance amounts (limits) have been increased to European levels.

Thanks to these changes, victims receive either full compensation or a repaired car at a partner service station. The MTIBU expects that the settlement mechanism will continue to be improved in 2026.

Payments for bankrupt insurers: the MTIBU can compensate losses faster

The entry into force of Law No. 3720-IX has enabled the MTIBU to compensate losses more quickly for the obligations of insurers excluded from the Bureau, without having to wait for a court decision on bankruptcy, as was previously the case.

The introduced mechanism has accelerated compensation and strengthened the protection of victims of road accidents: drivers are not left without compensation due to the financial problems of the insurance company — their own or that of another party to the accident. In total, in the first 11 months of 2025, the MTIBU settled 13,579 such cases and paid UAH 588.5 million to victims.

Electronic Europrotocol in Action and Online Document Submission

Throughout 2025, the MTIBU team worked with partners on new digital solutions. In particular, the MTIBU, together with the Ministry of Digital Transformation of Ukraine, is working on the implementation of the electronic Europrotocol in the Dія application. Currently, the final stage remains — technical implementation and official launch.

Victims will also be able to upload all the necessary documents for receiving insurance payments in the Diya app. Full implementation of the function is expected to take place in the first quarter of 2026.

We remind you! The state compensation service for motor vehicle insurance in Diya has been launched, but some applicants have encountered a message stating that the service is temporarily unavailable. It is important to understand that this is not related to a refusal. Read what the message “Service unavailable” means and what steps you should take to receive your payment.

Photo: telegraf

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