What to choose: OSAGO or CASCO? What is the difference?

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

All car owners in our country annually face the need to take out car insurance. Basic insurance packages for car owners are OSAGO or CASCO. Each of them performs different functions, and one type of insurance is mandatory, and the other is purely voluntary. What should you choose when applying for a policy - OSAGO or CASCO? What is the difference between these types of insurance?

The difference in insurance packages

A car insurance document must be carried by each driver and should be presented as soon as necessary to traffic police officers. If we look at the policy, we can immediately see what is in front of us - OSAGO or CASCO. What is the difference between these types of insurance?

A4 format document signed by OSAGO is called a compulsory insurance policy. It must be carried by everyone who drives their own car. It is this type of insurance services that we need to annually purchase from insurance agents. CASCO is a voluntary type of insurance. What kind of agreements should be concluded with SK - OSAGO or CASCO? In order to answer this question, you should understand in more detail the features of each type of insurance.

BWhat is special about OSAGO?

At its core, this type of auto insurance does not protect the car or the he alth of the driver, but the civil liability of this citizen in the event of a road accident. What does this mean?

In the event of an accident, the culprit of which is the owner of the car insured under OSAGO, the damage to the injured people will be compensated not by the driver himself, but by the insurance company. In this case, damage caused to the vehicle of the culprit will not be compensated. Thus, OSAGO insures unknown persons and their property if, as a result of the actions of the perpetrator, damage is caused to them. The maximum amount of insurance compensation is regulated at the legislative level. At present it is 400 thousand rubles. In case of severe damage or death of a person, the amount of compensation may be even higher. But in certain cases, the insurance company has the right to reimburse the paid compensation at the expense of the OSAGO payer.

When will OSAGO reimburse damages?

Under existing laws, the payment for compulsory auto insurance will be provided to the victim only in two cases:

• If the victim is a participant in a road accident and is recognized as an injured party in it, according to traffic police reports. The guilty party must be known in this case and have a valid and paid OSAGO policy at the time of the accident.
• If the policyholder was found guilty of an accident, but he was not drunk, behaved adequately and provided his car for inspection - in this case, compensation to the victims will be paid forinsurance company account. If the cost of processing your insurance policy is 10,000 rubles, and the damage caused is estimated to be five times higher, then the representatives of the insurance company will compensate the damage in the amount of 50,000 rubles, and the person responsible for the accident will not pay anything.

What is CASCO?

It is advisable to start talking about CASCO with a standard question that all novice motorists ask: "OSAGO or CASCO - which is better for the driver?" This wording is fundamentally wrong - after all, apart from the fact that both insurance packages are related to cars, they have nothing else in common. If OSAGO protects civil liability, then CASCO insures quite material values - the insurance package includes compensation for theft or damage to the car. Both insurance packages complement, but do not replace each other. Therefore, the question - OSAGO or CASCO: which is better - is meaningless. These insurances cover very different concepts, therefore, in order to compensate for any possible damage, you will have to pay for both policies.

When is CASCO reimbursed for damages?

You can count on compensation from the insurance operator in case of proven theft, damage or damage caused to the car. In some cases, the injured owner of the car can also count on compensation for he alth reasons - if this item was separately specified in the insurance contract.

OSAGO or CASCO: what to choose?

Now it is not so difficult to say that an insurance contract is mandatory in our countrycivil liability. The acquisition of an OSAGO policy is supervised by many financial institutions. These are the RSA - the Russian Union of Motor Insurers, and the Central Bank, which is the regulator, and various bills and regulations. CASCO insurance is purely voluntary. The provision of material compensation insurance is regulated only by the Consumer Rights Protection Law and the Civil Code of the Russian Federation. Therefore, when purchasing an OSAGO policy, you can take care of CASCO, but not vice versa. A voluntary car insurance policy does not exempt you from having to purchase OSAGO.

Regressive claims

The concept of a regressive requirement exists in all insurance companies and does not depend on what type of insurance you used - OSAGO or CASCO, or something else. In some cases, the insurance company is not required to pay the insurance premium. For example, if the perpetrator of the accident fled the scene of the accident, did not provide a vehicle for inspection, or was in a state of intoxication. In this case, the entire burden of financial payments to compensate for the damage falls on the shoulders of the culprit of the accident.

CMTPL or CASCO policies must include a clause on regressive requirements in the insurance contract. It stipulates cases in the event of which the insurance company may initiate a civil claim and sue the issued compensation back. This usually happens if:

• the victim leaves the scene of the accident before the arrival of the traffic police;
• does not provide his car for inspection;
• is under the influence of alcohol or drugsintoxicated;
• other.

In these cases, the insurance agent has the right to recover in court the entire amount paid to the victim (if we mean the OSAGO agreement) or the policy holder (if we are talking about CASCO). CMTPL or CASCO payments come only after the payment of the insurance policy.

Which type of auto insurance is cheaper?

The second important issue is the cost of car insurance. OSAGO or CASCO - which is cheaper? Sorry to disappoint you - it will be cheaper to pay for the damage caused to another person than to repair the damage caused to your own vehicle.

CTP rates are regulated by the state - in all insurance companies, the conditions for obtaining CMTPL insurance are the same, and a motor vehicle citizen in various insurance companies will cost the same amount. The cost of CASCO is set by insurance operators themselves, and it depends on many factors - from the statistics of theft of a given car model to the level of driver competence.