CASCO Insurance
CASCO is insurance for a vehicle (car or motorcycle) against damage or theft. CASCO insurance can be utilized even if the owner is at fault. If the car gets into an accident, a icicle falls from the roof onto it, or if the driver miscalculates the garage door, CASCO can cover the losses.
Typically, vehicle owners purchase CASCO policies voluntarily. However, when buying a car on credit, it is advisable not to decline insurance, as a CASCO policy helps reduce the interest rate on the loan.
What is the Difference Between CASCO and OSAGO?
- CASCO is voluntary insurance that protects the interests of the vehicle owner. Even if the owner is at fault in an accident and their insured vehicle is damaged, the CASCO payouts will compensate for this damage. The vehicle owner will either receive money or have their car repaired at the insurance company’s expense. The rates for CASCO are determined independently by each insurer.
- OSAGO (compulsory insurance of civil liability for vehicle owners) is mandatory insurance. The payouts from OSAGO go to the victims. This means that if the OSAGO policyholder damages someone else’s bumper or runs over their foot, their insurance company will compensate the amount of damage caused to another person’s property or health. The rates for OSAGO are regulated by the state.
If you purchase both OSAGO and CASCO policies simultaneously, they can be issued on the same form, but the terms of both policies must match. The rates for each type of insurance will be calculated separately by the insurance company.
What Affects CASCO Rates?
Several factors influence the rates:
- Statistics on thefts of specific makes and models of vehicles in your region.
- The price of spare parts and the cost of labor at service stations for your vehicle make in your locality.
- The age of the vehicle.
- Engine power.
- The age and driving experience of all drivers of the insured vehicle.
- Their insurance history (primarily how often they have been in accidents and what insurance payouts resulted).
- Additional services included in the policy (e.g., towing, on-site accident commissioner).
- The type of vehicle security device.
- The location of nighttime parking—garage, secure parking lot, or street.
- Other conditions (e.g., CASCO for right-hand drive vehicles will be more expensive).
Saving Money with Deductibles
A deductible is the portion of the damage that the insurance company does not compensate. This can be convenient—you won’t have to contact the insurer for every scratch—and cost-effective, as a deductible significantly reduces the cost of the policy.
There are two main types of deductibles: conditional and unconditional. With a conditional deductible, if the damage does not exceed its amount, you receive nothing. However, if the damage exceeds the deductible, the insurer will pay the full compensation. An unconditional deductible reduces the insurance payout in any case.
Deductibles can be fixed amounts in rubles or a percentage of the insurance amount. The insurance contract may also specify other types of deductibles.