Insurance for CASCO risks: conditions, risks, auto insurance objects

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Having decided on the need to insure your car (on its own initiative or under pressure from external factors), a person begins to search for a suitable insurance company. A potential client usually first looks at the insurer's tariffs, and only then pays attention to other terms of the contract (and even then not always). But the tariff will largely depend on the conditions under which auto insurance objects will be insured.

Despite the fact that CASCO is a voluntary car insurance for a client's car, not a single credit transaction can do without it. So for many car owners this contract becomes voluntary-compulsory. In order to understand the conditions in more detail and successfully choose an insurer, you first need to understand how CASCO differs from OSAGO. The main differences between these two types of insurance are the objects of auto insurance. If in the first case these will be third parties (that is, the life and he alth of other road users are insured, andalso their property, including cars), then with CASCO insurance, the only object of insurance will be the car itself.

When choosing the conditions under which a CASCO agreement will be drawn up, the client must understand that a low tariff under the agreement is necessarily accompanied by either a high deductible or exclusion from the list of certain risks. Both points are very important and may further affect whether a refund will be received when an event occurs.

The deductible (that is, the amount deducted from the reimbursement when it is paid) can be indicated both as a percentage of the cost of the car, and in rubles. If car insurance provides for a high deductible, then it makes sense to apply for compensation only in case of serious damage. Such agreements, as a rule, are concluded for credit cars, reducing the tariff due to the franchise, when the client, in fact, does not need insurance, and he perceives it only as an additional cost.

As for the risks against which auto insurance objects are insured, the situation is as follows: if the car is credit, then the bank chooses them, and the client cannot exclude any of the items in order to reduce the insurance premium. If insurance is not related to a loan, then the client himself chooses what to include in the contract and what not. In the event that auto insurance objects are insured against all CASCO risks, the contract covers road accidents (both due to the fault of the driver and without it), illegal actions of unauthorized persons (including theft), natural disasters, fallsobjects, trees, fires or spontaneous combustion.

To reduce the cost of insurance, the client can refuse items that, in his opinion, are unlikely. As a rule, natural disasters and fire are excluded from the contract, leaving only accidents and theft. With an average deductible of 2-4% of the sum insured, insurance can be 2 times cheaper. In this case, vehicles of both individuals and enterprises can be objects of auto insurance.

Many insurers set the maximum age of a car that can be insured under CASCO, increasing the tariff for cars older than 8, 9 or 10 years by 1, 5, or even 2 times, or even refusing to insure such vehicles.

When choosing an insurance company in which a CASCO contract will be concluded, as well as considering different terms of the contract, you should carefully consider this process so that, if necessary, you can easily and without problems receive compensation.