CASCO against theft and theft: we understand the nuances

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.

What else to read:

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• How to get money instead of repairs under compulsory motor liability insurance: a detailed review

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

Video on the topic:

Total loss and theft of a car: what a CASCO policy will protect you from

No better means than insurance has been invented to protect the financial interests of the car owner. In addition to compulsory types of insurance, such as compulsory motor liability insurance, there are voluntary ones, for example, CASCO. This is comprehensive insurance that protects the car from any damage or theft caused to it, but does not include insurance of transported property and liability to third parties. In the option where total loss and theft is insured under CASCO, companies that rent out cars, banks, if the vehicle is on credit, and, of course, ordinary car owners may be interested.

What is it about

The statistics of thefts in the country are sometimes simply frightening. If the car is stolen, the CASCO policyholder will receive a certain compensation specified in the contract. The domestic insurance market very rarely offers insurance only against theft. As a rule, this risk is included in a package with others and the insurance is called complete. If insurance is taken out only for theft, it will be partial CASCO. OSAGO does not provide for such a possibility at all, since this type of insurance only includes liability to third parties.

But compensation for damage caused, which requires restoration of the car, includes both types of insurance.

In the event of an accident, both the culprit and the victim can receive money under CASCO, but only the victim can receive money under OSAGO.

In addition, total loss of a car under compulsory motor liability insurance and comprehensive insurance has a different interpretation.

In the first case, this is truly the destruction of the vehicle as such, that is, when its further operation is impossible or the cost of repairs is equal to or exceeds the market value of the car.

In the case of CASCO, the total loss of a car does not mean that it cannot be restored. Simply, the damage will require repairs, the price of which exceeds the percentage of the cost of the car indicated in the insurance contract. Most often this is 70%, although the amount may vary. That is, you will not receive more than a certain amount. Here it is important to make sure that the insurance company does not try to recognize the case as “total” and refuse to cover the entire cost of repairs.

Pros and cons of total loss insurance

CASCO for theft and total guarantees maximum complete protection from almost all troubles that are possible with the car.

The insurance covers the maximum insured risks and provides the following benefits:

The disadvantages include:

• high cost;
• the complexity and duration of confirming the fact of theft;
• the difficulty of resolving controversial issues when determining wear and tear and recognizing the fact of “total loss”;
• there are restrictions on the age and length of service of the policyholder.

Where and how can I apply?

A contract can be concluded with almost every insurance company (IC) without exception, and this can be done today through an agent or directly through the website. The procedure is as follows:

1. Select an insurance company.
2. Review the contract, focusing on the proposed terms.
3. Submit the application, documents and payment receipt.
4. Sign the contract.

The choice is not difficult, since the market is oversaturated and many large companies consistently run promotions that allow you to save.

To avoid having to file a claim in the event of total destruction of the car, it is better to purchase compulsory motor liability insurance in compliance with the following rules:

1. The insurer must be reliable, that is, verified. If a company has been operating on the market for a long time, this is an indirect indicator of stability.
2. The contract is concluded in an office or a certified point of sale; you should not buy expensive insurance in person.

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.

Possible insurance options

Let's start with the fact that it is not possible to insure a car under CASCO only against theft in all companies.

In most cases, managers suggest taking out a policy with full insurance coverage, citing the fact that big troubles happen to a car much less often than minor damage.

However, it is not profitable for experienced drivers to purchase policies with all the options included: in fact, they pay for risks whose probability is minimal.

Car owners with extensive driving experience and accident-free driving skills rarely get into minor accidents, so they prefer to protect their vehicles exclusively from serious damage. Let's see what the Russian insurance market can offer in this regard.

Only theft

When choosing this insurance option, you need to understand that “theft” and “theft” are not identical concepts.

Theft is the illegal taking of a vehicle without mercenary purposes. In particular, if a car was stolen by teenagers for the purpose of going for a ride, and then they burned the annoying vehicle in a nearby vacant lot, the insurance company is obliged to compensate the owner for the damage caused.

If a car is stolen for the purpose of resale or dismantling for parts, such a crime is theft, and if the contract specifies only the risk of “theft,” the company will refuse to pay.

In addition, when insuring a car against theft, you need to understand that the company will not compensate for damage received by the vehicle. Therefore, such insurance will definitely be unprofitable for beginners who can scratch their car while simply leaving the parking lot: they will have to repair the car at their own expense.

Important! The company may refuse to insure a car if it is at risk. In addition, insurers may insist on the installation of certain anti-theft systems and require only garage storage.

Theft+total

This is a fairly common car insurance option that protects the car not only from theft, but also from complete loss.

All companies have different requirements for the total, but on average, constructive loss is considered to be situations when the damage caused to the car is 65-70% of the market value.

In case of total destruction of the car, the owner can receive compensation in two ways:

1. Keep the usable parts of the car for yourself and receive a payment minus their cost;
2. Transfer the car to the insurance company and receive the full cost of the damage.

Note that the second option is preferable. Firstly, the owner gets rid of the need to store a damaged car, and secondly, payments under this compensation option are much higher.

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.

CASCO against theft and total loss

Valery Kropachev / October 16, 2020

CASCO against theft and total loss is a type of insurance in which the driver insures the car against theft and loss and receives payments only if the car is stolen or completely destroyed. In this article we will tell you about the features of insurance and help you calculate the exact cost.

Calculate CASCO insurance against theft and total loss of your car

CASCO against theft

This is a special type of CASCO insurance, which allows you to receive payments only if your car is stolen or stolen. Theft insurance is well suited for experienced drivers who are confident that they will not get into an accident, but at the same time want to protect their car from the risk of theft.

Differences between theft and theft

The cost of insurance against theft is less than against theft, since insurers assume a high probability that the stolen car will be found.

Even if you are a very experienced driver and can cope with all sorts of difficult situations on the road, this does not guarantee the safety of your car. Statistics show that if your car is stolen, the likelihood of it being found by the police is not that high.

For car owners, various CASCO theft insurance programs provide a good opportunity to avoid the risks of being left without a vehicle and without money.

For a very reasonable price of 1.2 - 2.1% of the cost of the car, you can buy a CASCO policy in case of theft or theft, protecting yourself from much larger financial losses.

An additional advantage of theft insurance is that there are no restrictions on the driver’s length of service.

Insurance against theft and total destruction

This is a more common and expanded type of CASCO insurance. In addition to the theft insurance discussed above, it also includes insurance against total loss of the car, or CASCO total.

It is necessary to immediately determine what CASCO means complete loss of the car. It refers to damage for which the cost of repair is not economically feasible, i.e. exceeds the cost of the car itself. Complete loss of a car can occur as a result of a natural disaster, fire, actions of third parties, or an accident.

The price of insurance against theft and total loss of a car is higher than a CASCO policy only against theft or theft.

Requirements for a car for CASCO registration

Each insurance company has its own requirements for obtaining insurance. The main ones:

High price category and car age up to 10 years. If your car is of a low price category and is more than ten years old, you will most likely be denied insurance.

No defects. If your car shows corrosion, metal distortion, or damage, insurance will not be provided.

Correctly completed documents. Insurance companies issue CASCO insurance if you:

• policyholder and car owner
• received a state number
• passed state registration

Insurance may be denied if the policyholder:

• no original PTS or duplicate with stamp
• There were errors in the PTS or STS in the year of manufacture, wine number, etc.

Availability of anti-theft systems. To obtain CASCO insurance, install an alarm, lock and other anti-theft systems. If the car is under warranty service at a dealership, consult with dealers before installing an anti-theft system.

What documents are needed for registration?

• Vehicle registration certificate
• PTS;
• Car owner's passport
• Power of attorney, if the agreement is signed not by the owner, but by his representative
• Driver's license, if the insurance is not multi-drive

How much does CASCO cost against theft and how to save

The cost of insurance is 3-5% of the price of the car to 5-10%. The price is affected by:

• Popularity of a particular brand among car thieves
• Model, car class, year of manufacture
• Driver's age, region of residence.
• Method of storing the car, availability of additional services.
• Number of car users, payment method

Help to reduce the price:

Franchise

The amount of damage that will not be compensated upon the occurrence of an insured event.

Waiver of depreciation

Payments without depreciation are higher, but you will have to pay more when taking out a policy

Method of compensation

Receiving compensation in cash may be unprofitable compared to repairs at the insurer's service station.

To calculate the exact cost and choose the right company, use our calculator for CASCO insurance against theft.

What to do after an insured event to receive payment

1. Call the Investigative Committee and report the car theft
2. Take a certificate of theft from the traffic police and contact the insurance office
3. Write an application and attach all the necessary documents to it. Check the list of documents with an employee of the insurance company

To receive compensation faster, contact the insurance company immediately. The insurer reviews the application within 2 months. Time is counted from the moment the application is submitted to the insurance company, and not from the day the car was stolen

How much will they pay

Insurers calculate the exact amount of payments. Its size is influenced by:

• Depreciation. The price of the car is constantly decreasing, and at the time of payment it will be lower than at the time of concluding the contract.
• The amount of previously made payments. It is taken into account if such conditions are specified in the contract.
• Unpaid insurance premiums. If you have purchased CASCO insurance in installments.
• Availability of a franchise. It is deducted from the final amount.
• Car loan. You will be refunded the difference between the cost and the loan balance, the rest will be transferred to the bank.

If the company paid compensation for a stolen car, and after some time the police found it, you can pick up the vehicle and return the compensation or refuse the car and give it to the company.

When insurance won't pay

• The car was stolen along with documents
• There is no second set of keys. Their loss must be additionally reported to the Investigative Committee.
• If the vehicle is stolen after losing the keys. The insurer may consider negligence in the actions of the insured
• Violation of the method of car storage. If the contract states that the car should be parked in a guarded parking lot, but it was stolen from the street, you will not be paid compensation
• The permanent anti-theft device has been broken or disabled
• You are suspected of fraud
• You did not notify the insurer on time

Calculate CASCO insurance against theft and total loss of your car

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.

Results

In conclusion, we highlight a number of nuances that a car owner should remember when insuring a car against theft:

1. Car wear and tear is a factor that affects the amount of payments under a CASCO policy. Insurance companies often don't mention this, but it's important to find out what percentage will be charged before signing up. This could be 12 – 15% per year. The use of this factor leads to an increase in the price of the car. Sometimes the total wear and tear is as high as 24%, so it is important to study the agreement carefully. Sometimes it is more profitable to buy a full policy, but be sure of full compensation.
2. With each payment after an accident (if the person at fault is the policyholder), the amount of payment for theft is reduced by the amount already paid previously.
3. It is recommended to take into account the expensive equipment that is in the car in the agreement. Otherwise, no one will compensate for its cost if the car is stolen or destroyed. It is important that you have documents confirming the price of such equipment.
4. It is worth paying attention to the terminology, namely, what the company insures against - theft or theft.
5. The insurer often recommends a company to install a security system. If this option is imposed, you should refuse the company’s services.

It is important to pay attention to the point regarding the theft of a vehicle in the event that one of the keys is left in the ignition switch or documents for the vehicle remain. In such situations, the insurer often refuses to pay. He focuses on the fact that the policyholder allowed the theft through his actions. Such disputes are resolved through the court, which often sides with the policyholder.

In practice, disputes are possible if the car is rented or leased. In this case, the insurer also often refuses to transfer the insured amount. That is why such nuances should be clarified in advance. Sometimes problems arise with installing an alarm system at the request of an insurance company. In this case, the warranty service of the car may be violated or the interior may be damaged. As a result, the car owner suffers losses, compensation for which is almost impossible to obtain.

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.

Full or partial comprehensive insurance?

A comprehensive insurance policy may include car protection from one or multiple insurance events. Depending on the volume of risks, this insurance is divided into two types: partial and full comprehensive insurance.

Full comprehensive insurance

This insurance combines a combination of car insurance for the following risks: damage, theft and theft.

It is important to understand that with comprehensive insurance you only insure the car itself as supplied by the manufacturer. Full comprehensive insurance does not cover damage associated with harm to the life and health of the driver and passengers, as well as the contents of the car (transported property or additionally installed equipment), as well as the driver’s liability to third parties (MTPL insurance is provided for this).

The classic version of full comprehensive insurance covers the following types of risks:

• Any damage to the car in the event of a road traffic accident (accident) up to the complete loss of the car.
• Theft, theft or theft of a car.
• Causing damage to a car during an attempt to steal it.
• Damage, loss of individual parts, components, and assemblies of the vehicle.
• Various illegal actions of third parties leading to damage to the vehicle (acts of vandalism and intentional sabotage).
• Damage to a vehicle or its complete loss as a result of intentional arson by a third party or spontaneous combustion.
• Damage sustained by a vehicle due to various natural disasters.
• Actions of force majeure (force majeure).
• Accidental impact of stones or other objects on the car - icicles, hail, etc.

Theft and theft are different concepts

Many drivers mistakenly believe that theft and theft are, if not the same, then almost identical concepts. For the owner of the vehicle, the meaning is that “the car was there and disappeared,” then the insurance company will most likely look at the event from the point of view of the Criminal Code of the Russian Federation. According to its norms, theft and theft are different concepts:

1. Article 166: Theft is the unlawful taking of a car or other vehicle without the purpose of theft.

2. Article 158: Theft is the unlawful gratuitous seizure and (or) conversion of someone else’s property for the benefit of the perpetrator or other persons, committed for mercenary purposes, causing damage to the owner or other holder of this property.

In other words, theft is the unlawful taking of a car, as a result of which you lose the opportunity to use and dispose of the property at your own discretion, and the culprit gets the opportunity to use someone else’s property for personal gain.

Special cases of theft are theft (secret theft of property); robbery (open theft of someone else's property) and robbery (an attack for the purpose of stealing someone else's property, committed with the use of violence dangerous to life or health, or with the threat of such violence).

To avoid misunderstandings and major troubles, negotiate in advance with the insurance company a specific list of risks, which includes the full comprehensive insurance program.

Partial comprehensive insurance

This type of insurance involves insuring the car against damage - possible damage (up to complete loss) of the car and its parts. The difference between partial and full comprehensive insurance is that it does not include car insurance against theft and theft.

As a rule, insurance companies include damage to the car as a result of:

• collision, run-over, rollover, fall, fire due to a traffic accident (accident), falling into water and falling through ice;
• exposure to stones or other objects flying off the wheels of another vehicle, falling under ice or road surface, collapse of elements of roads, bridges, crossings, etc.;
• fire, lightning strike, explosion;
• natural disaster (earthquake, collapse, landslide, mudflow, sudden release of groundwater, storm, heavy snowfall, whirlwind, hurricane, typhoon, storm, tornado, volcanic eruption, flood, hail, flood, subsidence and subsidence of soil as a consequence of the above phenomena, atmospheric phenomena unusual for the area);
• falling of foreign objects onto the vehicle, including trees, snow and ice, floods;
• illegal actions of third parties, with the exception of theft of a vehicle, its parts or additional equipment;
• actions of animals.

It is worth considering that the exact list of insured events for incomplete comprehensive insurance must be agreed with your insurer. It is not uncommon for an insurance company to understand this type of insurance as covering a shortened list of risks (for example, all types of illegal actions of third parties and a few more items from the standard list) or, conversely, including damage caused to installed additional equipment.

By concluding an insurance agreement for any type of comprehensive insurance, you insure the car for a certain amount, which cannot exceed the market value of the car. Everything that is above is considered void under any insurance contract.

Sravni.ru advice: Obviously, the cost of insurance for full and partial comprehensive insurance will be very different. However, by choosing the right set of options you need, it is quite possible to find insurance at an affordable price. Just take the time to compare prices for the same policy from different insurance companies. The comprehensive insurance calculator will help you with this.