Is it possible to purchase CASCO insurance for a period of less than a year in 2021?

In practice, a voluntary car insurance contract is often concluded for a year, but there are other options. It is useful for car owners to know whether it is possible to apply for CASCO insurance for six months or for an even shorter period. The period of its validity is not regulated by law, so everything depends on the wishes of the policyholder.

Moreover, both the cost of insurance and the financial security of the insured person depend on the timing.

How long is the policy valid?

How long is the insurance policy valid? The duration of its validity largely depends on what tariff the policyholder chose, for what period the contract was originally designed, etc.

Depending on the insurance company, the car owner can choose for a rather limited period of time, which is suitable for specific situations.

For example, a specially created tariff for car insurance only on weekends. This means that the “net” period of use of CASCO will be shorter, which means you will have to pay less.

The standard insurance period is one year. During this time, the insurer can evaluate the statistics of a particular client:

• how many accidents involving the policyholder occurred during this year;
• how much his car has become cheaper;
• whether the rate of theft of his car model has decreased and other nuances.

If desired, the vehicle owner or other interested party, when purchasing a CASCO insurance policy, can choose a program with a longer validity period. For example, for 2 years. But this is not always profitable. Insurance policies with a six-month validity period, designed for 3 months or 1 month, are in much greater demand. We talked about this in more detail here.

When is short-term CASCO advisable?

Let's start with the newest type of insurance - per-minute, hourly CASCO. Such insurance is necessary for short-term car rental with a per-minute payment, the so-called “car sharing”.

Often operators providing their cars offer several rates for short-term car rental. There are options when the tariff includes a CASCO policy with a deductible, where minor liability passes to the user of the vehicle, subject to fault in the accident. There are also tariffs at which, regardless of the driver’s guilt, there will be no obligation to cover losses.

Fifteen-day or weekly insurance may be of interest to drivers who transport cars or rent cars.

If your voluntary car insurance policy is coming to an end and you plan to sell your car soon, then taking out a policy for 1 or 3 months is suitable for you.

Also, CASCO for 3 months or one calendar month will be of interest to car enthusiasts who are not completely sure about choosing a car and do not exclude the option of selling the car after a month's break-in.

Final loan payments may also be the basis for taking out insurance for a short-term period. After all, banks that provide car loans often oblige you to insure your vehicle with specific insurance companies, where rates sometimes exceed the average rates for the city.

What determines the choice of CASCO insurance period?

The problem of the modern CASCO car insurance market is that it is quite easy to find a reliable insurer that offers optimal insurance conditions, acceptable rates and flexible terms of the insurance period that the future policyholder could choose.

It is very important to find a suitable tariff that takes into account the following parameters:

• the duration of the contract is convenient for the client;
• favorable rates and final cost of the policy;
• maximum risk coverage;
• availability of additional protection options;
• availability of a free service;
• the possibility of prolonging the agreement on preferential terms;
• taking into account accident-free operation and all possible bonuses to provide discounts to the client.

In addition, a potential policyholder will always be pleased if he can make his own calculations in advance on the insurance company’s website, which would coincide with reality.

Many popular insurance organizations even offer a bonus - a discount of up to 5-10% if you sign up for a policy directly on the website, for which appropriate opportunities are provided.

Therefore, you need to pay attention to this in order to reduce the cost of a product that suits your time frame as much as possible.

However, the choice of policy duration may depend on the following main points:

1. How old is the car - is it included in the group of increased risk of operating a vehicle that can often break down.
2. How often does the owner use the car?
3. What experience does the car owner have in driving vehicles?
4. Is there a possibility that the owner will soon sell the car?
5. Regular CASCO or transit, when moving a car from one region of the country to another.
6. Whether the car is on loan or not, whether it is tied to the terms of the car loan agreement with the conditions of being pledged to the bank for a specific period of time.
7. Is the car available for short-term rental using the car sharing method?

In the first case, insurance organizations pay attention to the age of the car and its condition.

If the car is quite old and often breaks down, then insurers will most likely not want to insure for a long time such property, for which it is already known that frequent damages will have to be covered by insurance.

The new car is quite strong, in excellent condition, and shows minimal disruptions while driving on the roads. Companies will be happy to insure such a car for as long as possible.

The same may also apply to those car brands that are at risk of theft and theft.

There are cars that are most often targeted by criminals and swindlers - but insurance companies are not very willing to protect them for a long time.

In the second case, we are talking about the seasonality of car use. It makes no sense for the owner of a car to insure it under CASCO if he uses it only for trips to the country during the season - from April to September, let’s say.

Or, if the motorist uses the car, on the contrary, only in winter, or wants to protect it in winter from illegal actions of third parties (bullies), if the car is idle during the winter in the yard of the house.

Then it is enough for him to insure against certain risks only for a certain period of time.

Therefore, you will need to find an insurer that would provide its services with the conclusion of a voluntary car insurance agreement for 3, 6 or 10 months.

In the third case, the interest in purchasing insurance for a certain period of time concerns directly the driver’s ability to drive a car.

Most often, CASCO insurance for the risk of an accident (property risks and coverage for damage in case of violation of civil liability by the driver) protects young and inexperienced drivers.

They try to buy such insurance for the longest possible period, but at a price. And when a period of confidence and experience sets in, they may be interested in shorter terms.

This includes cases where the driver does not have a very good accident-free insurance history.

In the fourth case, the driver is sure that he will soon sell the car, so set aside a forecasted time for this - for example, 3 months, during which he plans to find a buyer.

There is no point in him haggling with the future buyer about the cost of the car minus insurance if he can immediately take out a CASCO policy for 3 months.

The same applies to those circumstances when a car is driven from one place to another, from one region of Russia to another. In the fifth case, when moving a car to the place of its new registration, it is simply enough to issue a transit CASCO insurance for a period of 20 days.

What is CASCO insurance for a car?

The term CASCO is commonly understood as issuing a comprehensive car insurance policy against possible damage or theft. The CASCO policy excludes any liability to a third party during an accident with the insured vehicle. For this purpose, a mandatory MTPL policy applies.

The advantages of CASCO include the fact that a wider range of risks is covered, which is not included in compulsory MTPL insurance:

• from the consequences of an accident,
• theft of individual car parts,
• car theft,
• spontaneous combustion of a car,
• consequences of hooliganism (car damage),
• hit by various objects and even from a lightning strike.

As a rule, the loan car is pledged to the bank, which requires registration of a full CASCO risk package.

If the car was purchased entirely with your own funds, without a car loan, and is owned, then you can choose only part of the risks for insurance. The number of risks specified in insurance directly affects the cost of CASCO insurance.

To reduce one-time payments when buying a car on credit, by agreement with the bank, the cost of CASCO can be included in the car loan. That is, the cost of the policy is spread over monthly payments and, as a result, is not so burdensome for the borrower.

The difference between CASCO and MTPL policies is that MTPL rates are controlled by the state, and for a CASCO policy, a separate insurance company uses its own coefficients to calculate the cost.

Therefore, if you try to calculate the cost of the same car online, all other things being equal, on the websites of different insurance companies, you will see differences in the cost of CASCO.

Sometimes the range of prices for a CASCO policy is quite large. What does the cost of CASCO depend on?

Validity period selection options

What determines the duration and duration of the insurance period and how not to make a mistake with the choice? Every client wants to find a reliable insurance company, reasonable prices and a convenient program.

When choosing a CASCO tariff, it is important to consider the following criteria:

• low rates and reasonable final price;
• the duration of the agreement required by the client;
• maximum possible damage coverage;
• the presence of additional options in the contract;
• the ability to extend insurance if necessary;
• discounts and bonuses for accident-free driving.

Please note that insurers do not like to issue such insurance. As a rule, they avoid short-term transactions or significantly inflate the cost to recoup their expenses. Finding a suitable option for a car enthusiast is not so easy and quick, so before choosing the period for which you need insurance, decide why and why you need a CASCO policy.

How to choose an insurer for CASCO

Even at the stage of choosing an insurance company to take out a CASCO policy, you need to very carefully study the proposed contract and ask the insurers to explain the most “slippery” places, and there will be plenty of them. The ambiguity and vagueness of many formulations is a fairly common phenomenon, but they can become a “rock of contention” when receiving insurance payments.

It would be a good idea to carefully study the history of the insurance company with which you plan to cooperate. An important aspect is:

• stability of the counterparty,
• quality of service,
• the cost of the CASCO insurance tariff.

You can also ask what level of payments the selected insurance company has. This indicator is calculated as the ratio of insurance premiums received to the amount of payments made, and should not fall below 30%, ideally 60%.

Cheap CASCO insurance for many car enthusiasts is just a dream, most often unrealizable. Everyone hopes to save money, not even wanting to think that an insured event can occur at any time and happen to anyone.

Website editors

Publications on the topics: how to get a car loan, which car to choose for credit, conditions for car loans in banks for new and used cars, how to repay a car loan ahead of schedule, CASCO and MTPL insurance for a loan car. The editors of the “Car on Credit” website help you understand the issues of obtaining, repaying and servicing a car loan

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Terms in different insurance companies

To understand which insurance company is more reliable and promising, just look at its ratings, which are assigned to it by the people and expert analytical services.

As an example, let’s look at some insurance companies, or more precisely, what terms they offer when concluding deals on the voluntary type of CASCO car insurance.

Table of validity periods of CASCO policies in different insurance companies in Russia:

The promptness of consideration of the application and the organization of the registration procedure are also important criteria when choosing an insurance company.

You should also look at the range of services, additional services, as well as insurance risks for which the insurance company undertakes to protect the policyholder and his property.

You also need to pay attention to the method of payment for the policy - if you are not able to pay its full cost right away, then it is better to agree to a product with installments or a deductible.

The terms of CASCO insurance vary - from several hours to several years, depending on why insurance is needed and under what circumstances it is used.

Typically, per-minute insurance is agreed upon in advance with the partner company that provides car sharing services.

And the terms that are standardly offered for future policyholders to independently select a product range from 3 to 12 months.

You can find offers where the policy will be issued for a longer period, but the maximum you can issue such a policy is only for 5 years.

CASCO for six months

Registration and purchase of a CASCO policy for up to six months is possible at the offices of the following companies:

• Rosgosstrakh provides the possibility of obtaining insurance for one or three months, subject to the obligatory condition of having an anti-theft system.
• RESO offers various options for voluntary insurance with a short period of validity. Depending on the presence of an anti-theft system. If there is an anti-theft system, the insurance policy is issued with a deductible. In the absence of such a system, you will be forced to purchase insurance at an inflated rate, without the possibility of establishing a deductible.
• Agreement . Depending on the current cost of the car in the automotive market, the company provides the possibility of a minor franchise of 2-3%
• Ingosstrakh . Tariffs under the insurance contract are high, which is compensated by the absence of any restrictive requirements.

How to purchase CASCO insurance for a month

Having decided to insure a car for a short period, it is important to know what documents are needed to obtain CASCO car insurance for one month and which companies insure for a minimum period.

Which insurance companies insure cars for a month?

Many insurance companies offer monthly car insurance. When choosing an insurance company, they give preference to organizations whose reliability has been tested by time. CASCO policies for a period of 1–3 months on acceptable terms are issued by the following companies:

• “Intach” – pays compensation in case of an accident or damage without the possibility of recovery (there is no deductible);
• “Renaissance Insurance” makes payments in the event of an accident or theft; When purchasing, no installment plan is available;
• “Tinkoff Insurance” – one-time payment in case of theft or accident.

Required documents

To apply for short-term insurance, you will need the following documents:

• application (written in free form or on UK letterhead);
• vehicle owner's passport;
• car registration certificate;
• driver license;
• documents for drivers allowed to drive a car;
• power of attorney to issue a policy, if an authorized person is allowed to insure;
• documents for the anti-theft system.

A machine condition card may be required.

CASCO for 12 months

There are situations when taking out a CASCO insurance policy for a car for 1 year would be a reasonable and only right decision.

If you purchase a car on credit, the obligation to purchase a voluntary insurance policy arises from the collateral agreement.

It also makes sense to take out an annual insurance policy, provided that you have only recently received your license and do not have the necessary skills and practice to drive safely.

If your car is one of the most stolen cars, then it would be wise to insure your vehicle so you can sleep peacefully at night.

Dependence of the cost of CASCO on its validity period

The CASCO tariff consists of a number of indicators. Moreover, the calculation formulas for different Insurers may be different. As a rule, the type of vehicle, year of manufacture, make, model, number of drivers, their age and experience, region, insurance program and term are taken into account. The term coefficient for a standard annual contract is 1. It must be borne in mind that when applying for CASCO for a short-term period, its price is not directly proportional to the price of a standard annual policy . You should not expect that a six-month policy is 2 times cheaper than an annual one. Its price will be approximately 60-70% of the annual value.

Long-term

Long-term CASCO insurance is more profitable and convenient for careful drivers, as well as for those people who do not intend to exchange their car for a new one in the near future. In any option, such a policy is beneficial for any driver, despite the fact that you need to spend a certain amount on the purchase, which may seem quite large to many. After all, no one is insured against the possibility of getting into an accident, and payments under the issued policy will be calculated for each individual case.

Voluntary CASCO provides the opportunity to choose an insurer, as well as a certain insurance option that will correspond to the client’s preferences and capabilities. In particular, the policyholder can independently determine the set of options and risks he needs, and he is not tied to any specific period and can buy CASCO for a year, three or five years at once.

Required documents

Each company requires a unique set of documents from its clients, and therefore it is best to clarify the conditions in advance with representatives of the insurer, but there is a certain list that is common to all organizations:

• an application from a person wishing to issue an insurance policy (must be drawn up in accordance with the form of the insurance company);
• passport of a Russian citizen of the citizen who is going to enter into an agreement, as well as all persons who will be allowed to drive a vehicle under insurance;
• the driver's license of each person who is permitted to drive the insured vehicle;
• technical passport of the car;
• vehicle registration certificate, which is issued by traffic police officers when registering it.

Also, some companies require a certain number of additional documents depending on the specifics of a particular situation.

In particular, you may be required to provide the following documents:

• power of attorney for the right to drive a car, as well as to draw up an insurance contract on behalf of the owner (the power of attorney must be certified by a notary and provided by an authorized person acting on behalf of the owner of the vehicle);
• invoice for the cost of the car, if the car is purchased through an official dealer;
• purchase and sale agreement if the car is purchased on the secondary market (used car);
• documents on state registration of the owner of the car, if he is a legal entity.

To receive compensation for car repairs under CASCO, you must carefully comply with all the terms of the insurance contract with the company.

Price

The most common option is to issue a CASCO insurance policy for a period of one year, since almost every insurance company annually reviews its accepted rates, and often does this downwards if the client meets certain requirements - has a long driving experience, has been cooperating with one insurer for a long time, and also does not get into any accidents.

It is also worth noting that cost reduction can be achieved by constantly reducing the cost of the insured car.

Among other things, the cost of a CASCO policy is also affected by the age of the car and its owner.

Conditions

In order to minimize your risks of not receiving payment during the process of registering a long-term CASCO insurance, it is important to consider the financial performance of the insurance company you have chosen, and also pay attention to the following terms of the contract being drawn up:

• a complete list of insurance risks, from which some of the most possible events may be excluded;
• the presence of a franchise, which provides for the payment of a certain part of the damage caused to the car by the owner of the vehicle;
• the option of paying compensation, which can become extremely unprofitable if the wear and tear of individual components is taken into account;
• the maximum possible insurance amount that should cover possible damage;
• the total number of insured events, the beneficial ones of which are unlimited;
• procedure and conditions for payment of compensation upon the occurrence of an insured event;
• payment period, which must be clearly limited to a certain period of time after filing the application without any additional conditions.

What affects the cost of CASCO

In addition to the main factors influencing the cost of CASCO and those mentioned above, subjective characteristics are no less important:

• country where the car was manufactured
• car class,
• indicator of model theftability.

As for the country where the car was produced, Chinese automakers are in the lead in terms of insurance rates, followed by French and American cars.

Japanese cars: Toyota, Honda, Mazda, Mitsubishi are statistically the most stolen, which increases the cost of CASCO for them.

An interesting feature of the CASCO calculation is the influence of the vehicle class. Expensive SUV models from different manufacturers are subject to the lowest CASCO insurance rate.

For example, for Toyota Land Cruiser Prado the insurance rate is 5% on average for companies, and for Reno Logan it is about 10%

A new or used car will also affect the cost of CASCO.

What to pay attention to when calculating CASCO insurance

If the price of CASCO seems too high, then you can contact your insurance agent with a request to reduce the cost of CASCO. But at the same time, you should understand why the cost will decrease, and how this can subsequently affect insurance payments.

First of all, you should pay attention to what the insured value of the car is indicated in the policy:

1. evaluative,
2. declared.

Regarding the first point, you should not be afraid of referral to an independent expert to assess the value of the car. Here, the main role will be played by whether the appraiser has the appropriate license under which he operates.

According to the second point, it is allowed to use the declared value of the car in CASCO calculations, that is, the amount is indicated according to the words of the insured. This can subsequently significantly reduce the insurance payment for possible damages.

For example, the real cost of a car is 500,000, but the policy states 100,000, then payments will be only 20% of the damage assessment

Don’t be shy about asking your insurance manager to explain in detail the conditions included in CASCO:

• What will be the payment if the policyholder violates traffic rules?
• Is the depreciation of the car taken into account when calculating the cost of CASCO?
• Does the insurance payment have any withholdings or taxes? - and so on.

As for the depreciation of the car, it is optimal, from the point of view of the benefit of the car owner, to insure the car without taking into account depreciation.

For example, after an accident, the driver's door is identified for replacement. The car is 5 years old. The payment will be calculated at a discount for five years' depreciation.

Another important point that you should pay attention to is the procedure to follow in the event of an accident. Naturally, if this is not a serious disaster, then you need to know when it is necessary and when it is not necessary to call the traffic police to the scene of the accident.

Short term

Despite the fact that the standard CASCO program in most companies is designed for a year, some organizations offer their clients to take out a policy for a shorter period.

Rates

In accordance with the current legislation, CASCO is regulated and regulated by the state only in the general insurance procedure, while each company has the right to set tariffs independently. That is why the conditions that are initially offered by many insurers may be quite similar to each other at first glance, but in fact they differ significantly.

Short-term policies cannot be renewed, and they are not subject to all sorts of discounts that can normally be given to drivers for accident-free driving. If an annual policy is canceled at the request of the policyholder, the amount to be paid will be calculated in accordance with short-term rates.

When choosing an insurance company, you should not pay attention to those offers that are the cheapest. It often happens that with such conditions, insurers attract clients due to financial difficulties, which can ultimately result in the complete collapse of the company and, accordingly, the impossibility of obtaining compensation in the event of an insured event.

Minimum CASCO policy validity period

Is it possible to get CASCO insurance for one month, and what is the minimum insurance period? Specialists from different insurance companies answer this question differently. In the voluntary insurance market there are no strict regulations establishing norms, tariffs and rules. Each insurance company has the right to establish the most optimal conditions. For some Insurers, the minimum CASCO validity period may be one week. Others offer an insurance product that provides a policy for one insured event. It is possible to issue a policy for one, three and six months .

Insurers do not really welcome insurance for a short-term period, since they bear the labor costs and other expenses for concluding the contract in full, and the benefits are generally small.

Which companies provide short term insurance?

Not all insurers are ready to provide the opportunity to purchase a policy for a short time, despite the fact that this service is becoming increasingly in demand among motorists. There are many offers on the market for transport insurance for 3-6 months; for a shorter period it is much more difficult to issue a policy.

Let's list which companies insure for a month and other short-term periods:

• Ingosstrakh;
• Tinkoff Insurance;
• "RESO";
• "Helios";
• "Rosgosstrakh";
• "Renaissance Insurance"

These insurance companies sell comprehensive insurance policies regardless of the duration of the contract. But the terms of service are different. For example, when offering comprehensive insurance for a month, it introduces a limit on the payment of compensation - no more than once. All operations to draw up a contract can be carried out remotely; it is not necessary to visit the company’s office.

If the client decides to apply for comprehensive insurance at Ingosstrakh, then with a short-term agreement he will be denied payment in installments. This opportunity is provided when purchasing a policy for a period of 90 days or more.

When purchasing from CASCO for a month or under another short-term program, restrictions are imposed on the age of the car. An agreement will be concluded with the car owner if his vehicle is not older than 7 years.

To find out where it is more profitable to apply for comprehensive insurance, you need to analyze the prices of several insurers. Some difficulties may arise with this, since each company strives to make its product as different as possible from the offerings of its competitors. The cost of the policy can also be affected by regional coefficients, which vary among insurers. Some organizations specialize in insuring vehicles of a certain class, so sometimes it is cheaper to buy a policy where the average market rate is the highest.

Advantages and disadvantages of short CASCO

Among short-term periods, the most popular offers are those with a duration of 3 or 6 months. Typically, such CASCO policies are purchased for the summer and autumn periods by summer residents who do not use the car at other times of the year.

Among the advantages of a non-standard policy period, the following can be noted:

• In the short term: in some cases, the motorist does not overpay for the period during which the car is not used;
• In the long term: the insurance company may make concessions and offer more favorable insurance conditions.

However, non-standard CASCO validity periods have more negative features. The benefit in the short term is often too small and does not justify the efforts made to obtain insurance.

When transporting a car over long distances, the car owner often loses more money if he takes out voluntary insurance for a week. Car transporter services that include cargo insurance are often cheaper.

Often the short-term CASCO period is not beneficial for both parties to the transaction. Insurance companies are afraid of encountering fraudsters, which leads to higher policy prices. Also, the probability of an insured event occurring within the time specified in the contract is quite small.

If a driver wants to take out a voluntary insurance policy, but does not have the required amount, it is better for him not to purchase a short-term CASCO period, but to buy the document in installments. However, if an accident occurs, the owner of the vehicle will have to pay the remaining amount to compensate for the damage.

Is it worth buying a short-term policy?

It is advisable to purchase a short-term CASCO insurance policy only when the end justifies the means. Considering that the price for a short period will not be proportional to the cost of a standard document, its purchase will be justified by a high probability of risk. We list some situations when it makes sense to take out short-term CASCO insurance:

• lack of experience of the car owner;
• The credit period for this vehicle ends;
• at the moment there is no financial opportunity to purchase a policy for a year, so they are purchasing for several months with the possibility of extension;
• took for temporary use an expensive or often stolen car according to statistics;
• Are you planning to drive a new car?

In all other cases, short-term CASCO insurance is issued at prices that are completely unattractive to the client.

For those drivers who have definitely decided to buy a short-term policy, it is important to analyze the offers of competitors and select the most favorable conditions.

If you do not have the opportunity to pay the entire amount at once for a long period, then you should try to get an installment plan with a maximum breakdown by month. This way you and your car will be protected and insurance won’t break your pocket.

For what period can you take out a car insurance policy?

Most often, insurance contracts are concluded for a year. However, this does not mean that these are the rules established by law. The state strictly controls the activities of insurance companies, but they are quite free in offering insurance products. If the MTPL market is controlled very strictly and the amount of insurance premiums for such insurance is set at the state level, then in car insurance everything is much freer. The reason is that OSAGO is mandatory, but CASCO is not.

Actually, each insurance company can develop its own insurance products, setting fees for them and the duration of the insurance. The minimum period of CASCO insurance in 2021 is not established by Russian legislation, and insurance companies are actively using their rights to offer clients the services they need. Insurance products with different terms for the provision of insurance services are also being actively introduced.

There are long-term insurances - for 2, 3 years and even 5 years. There are options for car insurance per minute - such options are used mainly when renting cars through the car sharing system. It is important to understand one thing - the longer the term of the insurance contract, the more expensive you will have to pay when concluding it, but then it will cost less each month, hour or minute of service provision. By paying CASCO monthly, the client saves on a one-time payment. However, if he buys such insurance every month, 12 one-time payments will be an amount significantly higher than what he would have to pay if he purchased insurance for a year at once.