Voluntary motor insurance (CASCO)

Voluntary car insurance — CASCO protects the owner's property interest in the event of damage to, loss of or theft of the vehicle within the chosen programme. Unlike compulsory MTPL, CASCO can compensate damage to the policyholder's own car.

A car is often a significant asset for a family or a business. Repairs after a road accident, fire, hail, a falling object or unlawful acts can require large expenses. A CASCO policy lets you decide in advance which events are passed to the insurer and which part of the risk stays with the owner.

CASCO and compulsory motor insurance

Criterion MTPL for vehicle owners CASCO
Form Compulsory Voluntary
What it protects Liability for harm to third parties Your own car under the terms of the policy
Damage to the at-fault driver Does not cover repair of their own car May be covered regardless of fault
Terms Determined by law and the contract Chosen from the insurer's programmes
Compulsory MTPL is provided only by an insurance company holding a licence for the relevant class. CASCO is also arranged with a licensed insurer, but it is a voluntary product.

Which risks CASCO can cover

Road accident
Collision, hitting an obstacle, rollover
Natural events
Hail, storm, flood and other events
Fire and explosion
Within the definitions in the contract
Falling objects
Trees, ice, parts of structures
Unlawful acts
Damage and vandalism
Theft
If the risk is expressly included

The set of events differs between insurers. A basic programme may cover only major damage or road accidents, while a comprehensive one covers a wider list. Check the rules and exclusions rather than the advertising name.

What is usually not covered

  • deliberately caused damage;
  • driving by a person who has no right to drive or is not admitted under the terms of the policy;
  • driving under the influence of alcohol or drugs;
  • ordinary wear and tear, corrosion and technical faults without an external event;
  • use of the car other than for its declared purpose;
  • participation in competitions, tests or hazardous operation without agreement;
  • leaving documents or keys in the car — if this affects the risk of theft;
  • an event outside the territory of cover;
  • failure to observe the deadlines and procedure for notification, where this has legal significance.

The phrase "the car must not be left in an unguarded area" may be a condition of a specific programme, but it is not a universal rule. All requirements for alarms, key storage and parking should be known before you pay.

Sum insured and the value of the car

The sum insured is the limit of the insurer's liability. It may be determined by market value, the purchase invoice or an agreed valuation. Overstating the sum does not guarantee a payment above the actual damage, while understating it can lead to insufficient compensation.

Find out whether the sum insured decreases after a payment, whether a proportional condition applies and how a total loss is assessed. For a new car, the procedure for changing its value during the year matters.

Deductible: zero or reasonable

A deductible is the part of the loss that the client pays themselves. A zero deductible broadens protection but usually raises the premium. A non-zero one lowers the price and lets you avoid claiming for minor damage.

A deductible can be conditional, unconditional, percentage-based, fixed or separate for theft, total loss and young drivers. So the advice "always choose zero" does not suit everyone.

Repairs: authorized service centre, partner or cash payment

  • official dealer — especially important for a new car under warranty;
  • the insurer's partner service centre — can provide an agreed repair process;
  • a service centre of the client's choice — if this option is included;
  • cash payment — calculated using the insurer's methodology and documents.

Check the use of original or alternative parts, how wear is accounted for, the approval timelines and the possibility of an additional payment for hidden damage. The wording "without deduction for depreciation" must be set out expressly.

Who may drive the car

A policy may admit a specific list of drivers, any person with a lawful right to drive, or restrictions by age and driving experience. Separate terms apply to corporate vehicles.

Before handing the car to an employee, a relative, a taxi driver or a renter, check whether this matches the declared nature of use.

How to arrange CASCO

  1. Fill in the application with accurate information about the car and its use.
  2. Provide the documents: ID, vehicle registration certificate and any other information requested.
  3. Undergo an inspection or photo recording, if required.
  4. Choose the risks, deductible and repair method.
  5. Check the policy: VIN, registration plate, drivers, period and territory.
  6. Pay the premium and keep the receipt, the rules and the inspection report.

Protection does not always begin at the moment the application is filled in. Go by the date, time and conditions under which the contract takes effect.

What the price of CASCO depends on

The car

Value, year, model, repairability, anti-theft protection.

Drivers

Age, experience, the list of admitted persons and loss history.

Programme

Risks, deductible, territory, service centres and additional services.

For a legal entity, the size of the fleet, the purpose of the vehicles, the territory, driver supervision, telematics and past loss statistics are also taken into account. There is no single price for all cars.

CASCO for taxis, rentals and delivery

Commercial use increases mileage and the frequency of risk. An ordinary personal policy may not cover taxi work, car sharing, rental, courier activity or driving lessons. The purpose of use should be disclosed to the insurer in advance.

Concealing the nature of use can become grounds for a dispute. Request a programme that expressly permits the intended use.

What to do when an insured event occurs

  1. Ensure safety and call the emergency services if necessary.
  2. Record the circumstances with photographs, video and documents.
  3. Notify the insurer within the prescribed period.
  4. Do not repair the car before inspection or written agreement, except for necessary emergency measures.
  5. Submit the claim and keep confirmation of each document.
  6. Obtain the decision and the calculation.

In the case of theft, contact the police and the insurance company immediately and hand over the keys and documents required. The requirements of the specific policy take priority.

Total loss and salvage

A total loss is determined by the threshold set in the contract, when repair is not economically viable. Find out who receives the salvage and how its value affects the payment.

If the car was bought on credit, the bank may be the beneficiary. The procedure for payment and for repaying the debt should be checked in advance.

The role of Polis Re

Polis Re can help compare programmes on identical parameters, check exclusions and gather documents. The final terms, the rate and the decision on payment are determined by the insurance company.

There is no universal "best policy." The choice depends on the value of the car, your budget, your willingness to pay a deductible and your preferred method of repair.

Summary: choose CASCO by the substance of the protection. Check the risks, exclusions, sum insured, deductible, drivers, territory and service centres — and keep the full set of documents.

This material is for information purposes only. Programme terms differ between insurance companies and are determined by the contract.