Car insurance:
CASCO and OSAGO

Every motorist, after purchasing an “iron horse,” always faces the issue of insuring the purchase. Since July 1, 2003, civil liability insurance for motorists has been a mandatory procedure in Russia. In this article we will look at the types of car insurance, compare prices for car insurance, discuss how to buy a compulsory motor liability insurance policy in certain cases and the corresponding benefits for the car owner.

How to buy insurance?

In the simplest case, the insurer contacts a specific insurance company. Sometimes this is a company practically imposed by the situation, for example, if the dealership where the car is purchased already has a representative of the insurance company or an insurance manager. For some time, intermediaries – private organizations, which entered into contracts with several insurance companies and actively operate for a percentage of the contract amount – enjoyed relative success. Such organizations are well known to all car enthusiasts - they, using access to the databases of their insurance partners, abused telemarketing (unplaced calls) and were gradually supplanted by aggregators.

There are few aggregators, but their advantages are obvious - convenient and without negativity, the policyholder gets a choice of offers from insurance companies in one place, with the opportunity to compare and get a policy in any city in Russia. See how it looks like using the example of the largest insurance aggregator - Ozone Insurance

How does CASCO differ from OSAGO?

There are two types of transport insurance in Russia, their names are OSAGO and CASCO. OSAGO (stands for Compulsory Automobile Liability Insurance) is an economical option designed to cover the costs of the culprit of an accident to compensate the injured party. The CASCO and OSAGO car insurance systems have several fundamental differences. But it should be noted that there is a maximum payment threshold above which insurance companies will not cover damage.

Today, the maximum amount of payments to cover damage to several victims by an insurance company cannot exceed 160,000 rubles, plus the same amount to cover damage to the health of several victims. To compensate for property damage to one victim, the threshold of payments by the insurance company cannot exceed 120,000 rubles. Property damage incurred by the person responsible for the accident is not included in the scope of compulsory motor liability insurance. To do this you need to buy CASCO.

What services are provided under the CASCO system?

Car insurance under the CASCO system is voluntary; a car owner may prefer it to compulsory motor liability insurance if he deems it necessary. CASCO (from the word casco, which translates as “body” or “helmet”) is a more expensive option for car insurance, which insures not only the possible civil liability of the driver, but also his vehicle itself. The list of misfortunes from which car insurance under the CASCO system can protect a driver is quite wide. Here there are road accidents, the health of people in the car, theft, falling foreign objects, damage caused to the interior of the car, and much more. The list of CASCO insurance cases is compiled for the insured individually.

What is the cost of car insurance?

As a rule, the main question that worries a person choosing car insurance is how much will it cost me? Car insurance under compulsory motor liability insurance will not greatly burden the driver with contributions, but this amount varies. The annual payment for compulsory motor insurance depends, first of all, on the driver’s experience and the engine power of his iron horse. The insurance history of the insured is also of great importance. From year to year, in addition, the amount of your insurance premium will decrease if you were not involved in an accident. And, of course, the region where you are insured also matters.

Let’s say that in Moscow the annual MTPL premium for an average car can reach 5,000-6,000 rubles, and in the Kursk region it is unlikely to exceed 2,000-2,500 rubles. The price of car insurance under CASCO also depends on many parameters. The car insurer calculates CASCO insurance for the client on an individual basis, and the final price for different buyers can vary greatly depending on a number of factors. The main one, however, is the market price of the insured iron horse.

Your annual CASCO policy premium can vary between 5 and 15 percent of the market value of your car. Also, the price of CASCO is, of course, influenced by the list of insured situations, the driver’s length of service, his insurance history and a number of other parameters. It is also worth noting that there is a threshold for the old age of insured cars. For example, today no insurance company will issue you a CASCO policy for an AUDI 80 model 1986 car.