All You Need to Know About Mandatory Auto Insurance

Commonly known as "Mandatory Auto Insurance", the Compulsory Civil Liability Insurance of Vehicle Owners is designed to cover damages caused by motor vehicles during their operation within the Republic of Azerbaijan. This type of insurance is a critical safeguard for compensating damages to both health and property.

What Vehicles Require Mandatory Auto Insurance?

All vehicles with an engine capacity exceeding 50 cm³ must have compulsory civil liability insurance for third parties. This applies to:

• Passenger cars and other vehicles based on their design;

• Trucks and other vehicles based on their design;

• Minibuses, buses, and other vehicles based on their design;

• Motorcycles and scooters;

• Tractors, construction, forestry, and agricultural vehicles;

• Trolleybuses and trams.

  
  

Coverage Amounts

The coverage limit for each incident is 55,000 AZN, allocated as follows:

• 5,000 AZN – for property damages;

• 50,000 AZN – for personal injury or death (with a maximum of 5,000 AZN per person).

Key Note: The coverage amount does not decrease after an incident. It remains valid for the full duration of the insurance contract.

Bonus-Malus System

The Bonus-Malus System adjusts insurance premiums based on the driver’s past insurance record. Simply put:

• The insured is given a discount on the insurance premium for each accident-free year.

• If an accident occurs, an additional premium is charged for the following year.

Thus, your premium depends on your driving history.

Premium Rates

The premium for mandatory auto insurance is the same across all insurance companies. Drivers are encouraged to select an insurance provider based on the quality of service and reliability.

Why Is Mandatory Auto Insurance Important?

1. Legal Requirement: It is mandated by law, and driving without it constitutes a legal violation.

2. Financial Security: Protects you and others from financial burdens caused by accidents.

3. Consistency: Coverage limits remain unaffected by claims throughout the contract period.

4. Discounts: Rewards safe driving habits with reduced premiums.

Mandatory Auto Insurance is not just a legal obligation but also a tool for responsible and safe driving. Ensure your own safety and that of others by securing this essential insurance.

Choose the Right Insurance Company for You!

Select a reliable insurance company to make the process smooth and efficient. For any inquiries, feel free to contact your insurance provider for detailed information.