Quality car insurance is determined not by bright advertising or the lowest price, but by how well the policy terms fit the vehicle, the drivers and the real risks. It is important for an owner to distinguish between compulsory liability insurance and voluntary protection of their own car.
What the solution provides
Compensation for the damage provided for to third parties or to your own car, depending on the type of insurance chosen.
Individual calculation
The price of CASCO depends on the car, the drivers, the set of risks, the sum insured, the deductible, the territory and the repair procedure.
MTPL and CASCO: the main difference
| Policy | What it protects | When it applies |
|---|---|---|
| Vehicle owners' MTPL | The civil liability of the car owner. | When operation of the vehicle has caused harm to the life, health or property of third parties of the kind provided for by law. |
| CASCO | The insured car itself, within the contract. | In a road accident, theft, unlawful acts, fire, natural events and other risks included. |
| Additional liability | Liability above or wider than the basic terms, within a voluntary programme. | When provided for by a separate contract and the event specified in it has occurred. |
Having a compulsory policy does not mean the insurer will pay for repairs to the at-fault driver's car. A voluntary programme is needed to protect your own car. Conversely, CASCO does not release the owner from the obligation to hold compulsory liability insurance.
What risks CASCO may cover
- road accidents, with or without another car;
- theft, larceny or misappropriation, as worded in the specific programme;
- fire, explosion and natural events;
- falling objects and damage in a car park;
- unlawful acts by third parties;
- damage to glass, headlights and individual parts under special conditions.
The name of a risk does not guarantee identical cover at different insurers. For example, damage to wheels, water hammer, driving off public roads or items left in the cabin may be excluded. Check the full text of the rules, not just a brief summary leaflet.
Signs of a good insurance contract
A good contract gives a clear answer to four questions: what is insured, against which events, for what amount and how to obtain payment or repair. The documents must state precisely the car, the permitted drivers, the territory, the term, the insured value, the deductible and the claims procedure.
- the exclusions are clearly worded and available before payment;
- the method of settlement is defined: payment, referral to a service station or a choice of several options;
- requirements for inspection, key storage and anti-theft systems are stated;
- it is clear whether wear of parts is taken into account;
- notification deadlines and the list of documents are fixed;
- internal limits on individual types of damage are specified.
What determines the cost of CASCO
The rate is calculated individually. It is affected by the make, model, year and value of the car, theft statistics, the cost of spare parts, the age and driving experience of the drivers, the region of use, storage conditions, the risks chosen and the loss history. The deductible — the part of the loss the owner pays personally — has a significant effect.
A high deductible usually reduces the premium but makes it uneconomical to claim for minor damage. A zero or small deductible raises the cost of the policy. Compare offers on the same sum insured, the same risks and the same repair procedure.
How to choose a car insurance programme
- Assess the cost of the risk. Consider whether you could pay for major repairs or the loss of the car yourself.
- Set your priorities. For a new car, theft and repair at an official dealer matter; for a used one, a reasonable sum insured and an accessible service station.
- Request several quotes. Compare the table of terms, not the final price.
- Check the insurer. Confirm the licence, the claims contacts and the procedure for filing a claim.
- Inspect the car. Record existing damage and the equipment before the cover starts.
- Keep the documents. The policy, rules, inspection report, photographs and proof of payment should be available to the owner.
What to do in a road accident
First ensure the safety of people and act as the law requires: stop the car, mark the scene and, if necessary, call the emergency services. Then notify the insurer in the way and within the time stated in the contract. Do not start repairs before an inspection or written approval, unless the rules allow otherwise.
Take photographs of the overall position of the cars, the damage, road signs and marks. Write down the contact details of the participants and witnesses. When handing over documents, obtain confirmation that they were received. If the insurer requests additional information, ask for the grounds and the deadline for providing it.
Typical mistakes made by owners
- choosing a policy solely on the lowest price;
- not reporting a change of drivers or conditions of use;
- assuming that any damage is automatically an insured event;
- repairing the car before an agreed inspection;
- not checking the period, territory and deductible;
- leaving the only copy of the documents in the car;
- giving untrue details to reduce the rate.
Check before you buy
- → the full name and licence of the insurance company;
- → the insured value of the car and the rules for changing it;
- → the list of risks covered and of exclusions;
- → an unconditional or conditional deductible;
- → repair at a dealer, at the insurer's service station, or a cash payment;
- → the treatment of wear and the limits on parts;
- → the territory and the restrictions on use;
- → the grounds for refusal and the procedure for resolving disputes.
Which option suits your car
For an expensive, financed or new car, a broad CASCO programme that protects against major damage and theft is usually appropriate. For a car of low market value, you can consider a limited set of risks or a deductible, keeping protection against the events the owner is not prepared to pay for personally. There is no universal package.
A quality policy is a balance of cover, price and clear claims settlement. Before concluding the contract, request the current terms, compare the offers and make sure that important promises are put in writing.
Frequently asked questions
Does CASCO replace compulsory insurance?
No. CASCO and MTPL have different subjects and purposes. The compulsory policy is arranged in accordance with the law, while CASCO is bought voluntarily to protect the car.
Does CASCO always pay for the full repair?
No. The payment depends on the sum insured, the deductible, the limits, wear, the circumstances of the event and compliance with the terms of the contract.
Can a used car be insured?
Yes, if it meets the requirements of the chosen programme. The insurer may request an inspection, photographs and documents on the condition of the car.
Check the current terms
Car insurance rates, rules and programmes change. Obtain a quote on the date of issue and check the version of the documents that will be attached to your contract.