AZE.US
Azerbaijan is preparing to change the way compulsory car insurance costs are calculated, with a new focus on the accident history of the person who actually drives the vehicle.
The new approach is aimed at preventing drivers who frequently cause accidents from avoiding higher insurance payments by using cars registered or insured under someone else’s name.
Under the previous practice, if several people were allowed to drive the same vehicle, the insurance cost could be calculated based on the driver considered to carry the lowest risk. Under the new rule, the calculation may instead be based on the riskiest driver among those who use the car.
This means that if a vehicle is driven by several people, including under a power of attorney, the accident history of each driver may affect the future insurance cost.
Experts say the rule will make car owners more cautious when allowing others to drive their vehicles. Before handing over a car, the owner may now have to consider not only personal trust, but also the possible financial consequences.
If a driver causes an accident, the incident will be linked to that person’s personal record. Even if the insurance contract is registered in the vehicle owner’s name, the accident history will be calculated based on the person who was actually behind the wheel and found responsible for the crash.
According to the proposed approach, each insured accident may add a 30% increase to the responsible driver’s future insurance payment.
For example, if a driver currently pays 100 manats for insurance, the amount could rise to 130 manats the following year after an accident. If the current payment is 200 manats, it could increase to 260 manats.
Some drivers see the change as fair, arguing that people who repeatedly cause accidents should either improve their driving skills or avoid getting behind the wheel.
Others worry that the rule could create additional costs for ordinary motorists, since even careful drivers can be involved in accidents. They say the system should be flexible enough not to punish everyone in the same way.
The main goal of the change is to connect insurance history not only to the vehicle or its owner, but also to the specific driver. In that case, a person who causes an accident will not be able to avoid the consequences simply because the car is registered to someone else.
As a result, checking a person’s driving history may become more important before allowing them to use a car under a power of attorney. For drivers, the message is also clear: every accident may directly affect future insurance costs.
AZE.US