CASCO insurance against theft and “Total”, what is it and how to get it

What is the difference between OSAGO and CASCO

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The essence of these types of insurance is the same, but they have fundamental differences. The MTPL policy is mandatory, while the CASCO policy is concluded exclusively on a voluntary basis, at the request of the car owner.

However, this is not the only difference. The main distinctive feature of these types is that compulsory motor liability insurance is aimed at covering damage to third parties injured in an accident. The culprit, as a result of the damage received, does not receive compensation at all. Thus, the financial responsibility of the person responsible for the accident is transferred to the insurance company, which undertakes to fully compensate all expenses to the injured person.

CASCO insurance is necessary in case of insured events; it allows you to protect your car and obtain insurance. With compulsory motor liability insurance, damages are compensated only to injured persons.

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The scope of insurance risks covered by the CASCO policy is much wider than that of compulsory motor liability insurance. For example, CASCO protects a vehicle not only due to damage caused under various circumstances, but also when establishing the fact of theft and theft.

There is also a difference between these types of insurance in price: compulsory insurance is much cheaper and, accordingly, is more affordable for citizens.

In addition, until recently, the cost of compulsory motor liability insurance for all insurers was the same, but now it fluctuates in the amount of 15-20%. As for CASCO, the price directly depends on the degree of risk and the cost of the car and varies somewhat among different companies.

The amount of compensation for damage is also different: in compulsory motor liability insurance, payments are based on the average cost of repairs, as well as the degree of wear and tear of the vehicle; in the second, payments are calculated in the amount of the real cost of car repairs (at the time of the accident).

The maximum amount of CASCO coverage depends on the cost of the car, but cannot exceed it.

The few disadvantages of these insurances include the following: in CASCO insurance, the age of the insured vehicle should not exceed ten years. For an MTPL policy, this factor is not taken into account.

comparison table

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Cost and what it depends on

Car owners can protect themselves from financial risks and reduce insurance costs by choosing single risk insurance. Just look at how much theft insurance and full motor insurance costs from various insurers and calculate the benefits when taking out a “reduced” policy. Table No. 2 shows the cost of an insurance policy for a 2012 Hyundai IX 35 car registered in Moscow. The price is 789 thousand rubles, mileage is 100 thousand km.

Table No. 2 - Cost of a comprehensive insurance policy for the risk of “theft” in 2021, rub.

Source: insurers' websites https://www.ingos.ru/auto/kasko/calc/

You can calculate your insurance against theft either independently, using the online calculator on the insurer’s website, or by contacting the office or email of the insurance company. Insurance will be cheaper for a car owner over 25 years old with a driving experience of more than 2 years. Such a car owner will be perceived by the insurer as an experienced driver; the advantage will be the absence of applications to the insurance company during the past year, and the absence of fines for violating traffic rules.

Advantages and disadvantages of OSAGO

Advantages of OSAGO:

• The main advantage of MTPL is its low cost compared to CASCO.
• There are discounts for driving without accidents.
• Compulsory motor liability insurance is regulated by a special law (Article 12.37), which specifies the procedure for insurance, payments and the cost of the policy.
• In the event of bankruptcy of the organization that issued the policy, payments will be made.

Flaws:

• Tariffs are set exclusively by the state.
• The maximum amount of coverage is 400 thousand rubles.
• The costs of repair work are covered only for the injured party.

Both types of insurance contracts have their advantages and disadvantages. Therefore, if a car is too expensive, experts recommend insuring it voluntarily.

Advantages and disadvantages of CASCO

CASCO primarily insures the owner's car. This allows you to be sure that the vehicle is safe, so it is very important to have a voluntary insurance policy on hand.

CASCO advantages:

• Payments can be made by the insurance company, both in repairs and in cash.
• Guarantee of payment in case of an insured event.
• Payment is made regardless of who is at fault for the accident.
• Coverage of damage caused to a car as a result of an accident due to the illegal actions of third parties, force majeure, etc.
• Compensation is made in the form of the actual cost of repair work at a service station (excluding wear and tear of the vehicle).

Flaws:

• The need to take out a policy when purchasing a new car. Most often, financial institutions include the cost of the policy in the amount of the issued car loan in the first year of using the car.
• High cost of the policy. On average, the price of CASCO is about 10% of the cost of the car.

Despite the high cost, the CASCO insurance contract reliably protects the vehicle in the event of many unpleasant situations.

Policy maintenance

The cost of CASCO against car theft is influenced by many factors, one of which is the driver’s experience.

If the car is stolen, the insurance company is obliged to reimburse the full cost of the car without taking into account depreciation. It is for this reason that the cost of theft insurance service is 3-5% of the price of the car.

In addition, do not forget about the risk of vehicle theft, because cars of different values ​​are susceptible to theft. Alarms have long been no barrier to thieves, and the emergence of the latest security systems has only provoked the invention of modern hacking methods.

Years earlier, theft was not carried out by professionals and was based on getting easy money.

Today there is a custom, carefully planned theft of a vehicle. A criminal operation involves clear planning of actions before and after the crime and the purchase of tools capable of disabling any security systems.

As statistics show, the chances of a successful investigation of such a case are negligible. In case of theft, the insurer is obliged to pay monetary compensation.

As a rule, searching for an insurer capable of offering partial insurance is not always successful. Usually the insurance contract contains additional insured events; you cannot simply buy CASCO insurance against theft. These include:

1. destruction of a vehicle as a result of fire;
2. damage by unauthorized persons;
3. damage resulting from falling icicles and other objects;
4. total loss of the car;
5. car accident.

Insurance situations also include damage resulting from hail and other adverse weather conditions, fire, flood or explosion.

Is it worth insuring your car under CASCO?

Despite the fact that CASCO insurance is not cheap (about 10% of the price of the car), the contract guarantees payments in the event of various unpleasant situations: upon the occurrence of an insured event, in force majeure circumstances, etc. Compensation is reimbursed in cash or by carrying out repair and restoration work.

In some cases, for example, when buying a car on credit, CASCO insurance is required. This is due to the fact that banks are thus trying to protect themselves. If you refuse to register for CASCO when purchasing a car, you may not be given a loan.

However, if you look at this situation from the other side, then it is better for the future owner of a new car to agree with the financial institution and take out voluntary insurance. Repairing new cars is quite expensive, and in the event of an accident due to the fault of the owner, according to OSAGO, you will have to cover the damage caused to your car yourself.

If a car is purchased on credit, do you need to apply for compulsory motor liability insurance if you have CASCO insurance? Mandatory, since the presence of voluntary CASCO insurance does not exempt the car owner from this type of insurance.

OSAGO also has its advantages. Thus, for accident-free driving, discounts and insurance payments are provided even in the event of bankruptcy of the insurer.

Subtleties of insurance

Practice shows that theft insurance is rarely used as a separate service. Several insurers offer this option, and more often the client is offered the full range of services - full CASCO. If the policyholder managed to find an organization that only insures against theft, this service option is called partial CASCO.

The difficulty of taking out a policy with only one insured event (theft, theft) is associated with the following factors:

• Such a policy carries high risks for the insurer. For example, the owner can independently “arrange” the theft of a vehicle to receive compensation. By the way, in the early 90s there were many such cases of fraud. Over time, insurance companies have learned to expose the swindlers.
• It is not profitable to record only one case, because the insurance amount under CASCO for car theft is the highest (when compared with other types of damage).

That is why theft and/or theft are included in the insurance policy in conjunction with the more common insured event - damage to the vehicle in an accident.

If an accident occurs, apply for compensation under OSAGO or CASCO insurance

Often, drivers who have two policies wonder which policy is more profitable to obtain insurance in the event of an accident.

If the car owner has both policies in hand, then in case of an accident it is worth considering the following points:

• Conditions of the insurance contract.
• Circumstances of the accident.
• Extent of damage.
• Speed ​​of payment (CASCO is paid much faster).
• Who is the insurer?

Important! If the car owner is not the culprit of the accident and the amount of damage caused is less than 400 thousand rubles, then it is still better to use compulsory motor liability insurance. Since there is one drawback when deciding to receive compensation under CASCO insurance - next year this policy will be significantly more expensive for him.

To avoid problems with payments, all drivers who are allowed to drive a car must be included in the CASCO policy. If the driver who is not named in the policy is driving, the policy will be denied payment. If at the time of taking out insurance it is not known who will drive the car, then you need to buy unlimited CASCO insurance.

Regardless of who is at fault for the accident, the insured must have a compulsory motor liability insurance policy. Therefore, there is no need to doubt whether OSAGO is needed if you already have CASCO insurance. Otherwise, problems with payment may arise.

Important points when insuring against theft

In order to avoid making mistakes when applying for a policy, it is important to remember that theft and theft of a vehicle have different meanings.

A car can be considered stolen only if it could not be found within a certain period established by the insurer and specified in the contract. As a rule, the longer this period, the better.

If the insurer does not indicate the period allotted for searching the car, compensation for damage may be denied. Drivers allowed to drive are reflected in this agreement.

When signing an insurance contract, the company that issued the policy almost always adds damage to the vehicle to CASCO. Such actions reduce the risk of potential loss as a result of an incident.

To avoid getting into an unpleasant situation, buying a car requires attention to certain things. Before insuring it, you must clarify with the insurance company manager what exactly constitutes an insured event: theft or theft of property.

Despite their similarity, there is still a difference. Theft is an illegal act committed by unauthorized persons in relation to a vehicle that does not belong to them for the purpose of its use and/or sale.

Cars recognized as stolen are found fairly quickly. Theft is the theft of a vehicle to sell it and get money. The search for stolen cars often does not end in success.

All actions during the work of an investigator completely depend on these concepts. First of all, a criminal case will be opened in the hope of finding the lost car.

After 10 days, when a case has already been opened, an investigation begins, at the end of which the car can be recognized as stolen.

If the CASCO agreement specifies insurance against theft of a vehicle, compensation will be provided only after the establishment of a case and the completion of operational investigative measures (when the car is recognized as stolen).

In a situation where the insured event is theft, the insurer is obliged to provide compensation regardless of the investigation.

Also, insurance companies often save on compensation for the client, sometimes breaking the law. One of the most common methods of saving is challenging the market value of the car even at the stage of signing the CASCO agreement.

For example, the insurer and the client enter into an agreement where the cost of the car is 500 thousand rubles, and when an insured event occurs, the insurance company declares that the vehicle was assessed incorrectly.

Next, the client receives an independent examination report, as a result of which the cost of the car has decreased to three hundred thousand. As a result, the policyholder is faced with a choice and, in fear of not receiving compensation, the citizen agrees to the newly established cost.

Attention! In accordance with Art. 948 of the Civil Code of the Russian Federation, an insurance company does not have the right to dispute the value of the insured property.

Interesting article: CASCO refund when selling a car.

Buy both policies from the same or different insurance companies

If an accident occurs, the vehicle owner has the opportunity to apply for CASCO to one company or for compulsory motor liability insurance to another. However, if the car owner decides to buy CASCO insurance in addition to compulsory motor liability insurance, then the question may arise whether it is necessary to purchase different policies from one insurer or whether it is better to contact different companies. There is no clear answer to this question, but there are pros and cons in favor of both options.

Advantages in favor of drawing up contracts with different insurance organizations:

In the company where the compulsory motor liability insurance was issued, despite the CASCO benefits, it is convenient to receive it.

Minuses:

• If the company turns out to be unreliable, the car owner may have problems with two insurance policies at the same time.
• Quite often there are unfavorable conditions at the time of concluding a contract than in another organization located somewhere in a remote office.

The choice of insurer must be made with responsibility, since insurance conditions in different companies can vary significantly.

Advantages of choosing to take out insurance with one company:

• The insurance procedure is simpler and does not take much time.
• Often, when taking out insurance for both types, companies provide car owners with discounts.
• Some insurers, when insuring CASCO insurance, offer a client who has previously received compulsory motor liability insurance from them a discount for each year of accident-free driving, starting from the date of insurance.

In conclusion, it is worth summing up. Whether CASCO is needed if you already have MTPL is up to the owner of the car to decide. At the same time, he must be guided by his own interests and determine for himself what compensation and in what amount he would like to receive in the event of an insured event.

Today, all vehicle owners have a choice. This is explained by the fact that at the time of concluding CASCO, insurance organizations have greater opportunities. They have the right to set deadlines for compensation of damage and establish the amount of insurance payment. In addition, insurance companies for which payment is provided under the CASCO policy are also determined by the insurance companies. Accordingly, by contacting different organizations, you can issue a policy under different conditions.

Payments and when they will be refused

Insurance compensation is paid within the limits of the insured amount under the contract minus the unpaid part of the insurance premium, deductible (under the contract), and depreciation. Depreciation wear deserves special attention. Insurance companies deduct 1% of depreciation for each month of operation, so you can calculate the final amount yourself. If the cost of the car at the time of signing the contract is 1,200,000 rubles, then if the car is stolen after 10 months, it will automatically decrease by 10%. The insurer will deduct the difference and pay only RUB 1,080,000. When concluding a contract, you should carefully read the conditions offered by the insurer - in some cases, depreciation may be higher.

The most common reason for refusal of compensation is leaving keys and documents in a stolen car, or finding out that documents were missing before the car was stolen. Often, insurers include clauses in the contract that are not legal - the absence of a second ignition key should not be grounds for refusal to pay. The court most often regards such situations as the insurance company’s withdrawal from fulfilling its obligations to the policyholder and makes a decision in favor of the plaintiff, the insurer’s client.

Each insurer has its own rules and terms for paying compensation. Most often, compensation is paid after the criminal case is closed. Sometimes the insurer will pay a small percentage of the insurance during the investigation and transfer the rest to the insured after the case is closed. A prerequisite is the conclusion of an agreement with the policyholder in the event of the discovery of the car after payment of the insurance. Under one of the conditions, the client will have to return the entire amount of insurance; under the second, he will have to renounce ownership of the car, which will become the property of the company.