Where can you get CASCO insurance cheaper and what type of economical insurance is right for you?

Insurance under the CASCO program is the most common option for insuring various motor transport risks on a voluntary basis, more often demanded by inexperienced drivers or owners of expensive vehicle models. When concluding an agreement with an insurance organization, the client is issued an insurance policy that provides his protection in the event of the occurrence of the types of risks specified in the transaction (theft, damage).

The term of the agreement begins from the moment the policyholder pays the insurance premium in full or in part (if paid in installments) and lasts on average up to 12 months. Some companies provide the opportunity to purchase a policy for a shorter period.

For what period can a CASCO policy be issued?

A CASCO policy is rarely issued for a long term. The majority of those wishing to buy voluntary insurance policies for 3–5 years are fleet owners. Insurance companies provide them with special rates. Most motorists choose standard CASCO insurance – for a year. It is not profitable to apply for a longer period: it is impossible to predict the wear and tear of the car. Long-term insurance deprives the driver of the right to receive a discount when the Bonus-Malus coefficient (BMR) is reduced for accident-free driving.

Vehicle owners are interested in whether it is possible to issue a CASCO policy for only 3 months. There is such a possibility. CASCO for 3 months, or seasonal insurance, is often issued for the winter, when accidents on the roads increase. The policy is purchased by drivers who work during a specific season. Insurance for 3 or 6 months is popular among summer residents. The seasonal policy is valid during summer and autumn; at other times the car is not used. This is beneficial for motorists who plan to use their car only in the near future.

Insurance companies are reluctant to enter into short-term deals, although the insurance period is not limited by a time frame. The law does not establish a minimum period for which an insurance transaction can be issued, so the contract can be concluded for 5 years or only for a day.

Is it possible to do CASCO insurance for a month?

Insurance is issued not for a year, but for a shorter period, according to an individual plan. Based on the preferences of the car owner, CASCO policies can be issued not only for 3 months, but also for a shorter period of time:

• 1 month;
• 2 weeks;
• week.

When renting a car for a short time (car sharing), which provides for per-minute payment, you purchase per-minute CASCO insurance. To conclude an agreement, IC Inkor Insurance offers clients to use telematics equipment and connect the Start CASCO mobile application. The policy provides protection against theft and damage while parked and damage while driving.

Sometimes vehicle owners try to insure their car for a month in order to check the reliability and quality of work of the insurance company. Experts warn against irrational spending: the risk of circumstances that will demonstrate poor staff performance is minimal.

Why do you need short-term car insurance and in what cases can it be useful?

Insurance companies do not want to take financial risks, so they set high prices for policies. Sometimes car owners do not see the practicality of purchasing an annual policy. But when concluding an insurance deal for a short period, the policyholder pays a lot of money. Therefore, in order to obtain short-term CASCO insurance, there must be significant circumstances:

• The voluntary car insurance policy expires, and the owner of the vehicle is going to sell the car;
• the car was purchased recently, the owner is not entirely sure of the choice and wants to sell it in the near future;
• seasonal use of the machine;
• the driver is engaged in driving a car from one city to another;
• change of car owner;
• final payments on the loan (sometimes banks issuing car loans oblige you to insure your car with a specific company, where average rates are higher than city rates);
• signing an insurance contract with another organization.

Short-term car insurance is necessary if it is not financially possible to buy a policy for a longer period.

How to apply for a Tinkoff CASCO policy

To apply for a voluntary CASCO car insurance policy through Tinkoff Insurance, open the official Tinkoff website. After that:

1. Fill out the form for a comprehensive insurance policy and calculate the cost based on the selected parameters using the Tinkoff Insurance online calculator.
2. Pay for the policy using a card for a month or a year.
3. Arrange a meeting with a bank employee. A specialist will inspect the car and give you the policy.

To apply for a CASCO policy at Tinkoff you will need:

• passport of a citizen of the Russian Federation;
• STS and PTS;
• driver's licenses of those who intend to drive a car;
• power of attorney if the insurance is not issued by the owner of the car.

In addition, the insurance company may require additional certificates and confirmations to ensure the accuracy and reliability of the car owner:

1. Certificate of accident-free driving. This document can be issued by the company with which you previously insured your car. The certificate will only be needed when changing insurer. If you take out a policy with the same company for several years in a row, the document will not be required.
2. Agreement of purchase and sale, leasing or rental. If you don't own the car and you rent it, the cost of insurance may increase.
3. Loan and collateral agreement. The document will only be needed if the car was purchased on credit or registered as collateral.
4. Previous comprehensive insurance policy, if available.
5. Registration certificate, act or any other document about the installation of additional equipment in the car.

Based on additional documents, the final cost of insurance may decrease slightly.

What to consider when applying for CASCO insurance

Pay attention to 4 parameters:

1. Conditions for compensation of damages.
2. Method of cooperation – remotely or in the office.
3. Deadline for payment of compensation.
4. Difference in price from the market average.

Before taking out an insurance policy, be sure to take into account the insurance rules and conditions for compensation for damage . After receiving comprehensive insurance, comply with the requirements of the insurer, since if they are not met, the company will refuse to pay compensation.

For example, if a car is stolen, the policyholder will require to present documents for the car and a second set of keys. If for some reason you do not have them, the insurance company will not pay compensation, since there is a possibility that you yourself handed over the keys to a third party for the sake of profit. The insurance company's refusal can be challenged in court, but usually the chances of winning the case are slim.

You can select a company based on the type of cooperation :

• remotely;
• in the office

It is more convenient to cooperate with an insurance company that works remotely, for example, Tinkoff Insurance. This way you won’t have to waste time getting to the office and waiting your turn with a specialist. All documents in the event of an insured event can be uploaded to your personal account.

Unscrupulous companies do not indicate in the contract the period for payment of compensation . Because of this, payments may be delayed and sometimes not returned at all. Make sure that the contract specifies the exact period during which you can receive payments. The insurance company must comply with any written agreements.

Compare prices for CASCO policies from several insurance companies to find a more profitable option. But do not rush to take out a policy if its cost turns out to be several times lower than the average in your city. Typically, such insurers turn out to be scammers; they are not initially going to pay compensation when insurance risks occur, so be careful.

The main signs to suspect an insurer of fraud:

• the maximum payment is too low, for example, up to 100 thousand rubles;
• insured events that are specified in the policy, very rare incidents, for example, such as a meteorite fall, an avalanche or a tsunami.

Use online calculators when calculating the price of a CASCO policy.

Cost and conditions of CASCO policy for a month

Each insurance company compiles a list of insured events for which it will pay compensation. The annual contract includes more options for insurance risks. Therefore, in order not to be disappointed when purchasing a CASCO policy for a month, carefully study the terms of the contract. Most insurance companies compensate for losses associated with an accident and/or car theft.

The cost of a monthly insurance program is 30% of the annual CASCO policy. The amount of compensation after the incident will be minimal. Insurers explain this by saying that by selling short-term programs, they risk entering into an insurance contract with a fraudster. With long-term cooperation with the client, the risk is halved. To reduce the cost, personal discounts, installments or a franchise are used (but not all insurance companies do this).

To determine the cost of a monthly policy, insurance companies use the following data:

• information on the presence/absence of insured events under previous CASCO agreements;
• insurance region;
• area where the vehicle is used (city or village);
• information about the environmental class and type to which the machine belongs.

Complex formulas are used to calculate the cost of insurance. Ultimately, the cost of a monthly CASCO policy depends on different tariffs (not regulated by law, set by the insurance company) and coefficients, which may differ in different periods. On the official websites of many insurance companies you can calculate the cost of insurance using an online calculator. Companies set their own prices for policies. But prices are within standard limits, because in a competitive environment, insurers do not inflate the cost of their services.

Difference from insurance for a year

Taking out a short-term or standard policy is the decision of every car owner. Unlike an annual contract, the cost of the service is significantly lower, but when recalculating costs for 12 months, the owner pays 30% more. In addition, mini CASCO has fewer types of insurance risks.

The period for obtaining an insurance policy is calculated based on the needs of the car owner. For rare use of transport, it is better to use short-term contracts. Therefore, when asked whether it is possible to do CASCO insurance for a month, each owner answers himself.

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.

Why take out a short-term insurance policy?

CASCO insurance covers motorcycles, passenger vehicles, trucks, buses, trailers and tractor equipment. But you don’t always have to use vehicles for a whole year.

Owners can sign up for the service for a short period of time under the following circumstances:

1. If the owner is going to sell his car, but is afraid of financial risk from theft or an accident before the transaction is completed.
2. A car is purchased in one region and then transported to another. The goal is to protect yourself from risks that arise along the route.
3. Use of a vehicle before seasonal transportation. For example, transportation of building materials, which is almost never carried out in winter.
4. In cases where the policy is issued when concluding a loan, the policyholder wishes to choose another company, but does not receive the bank’s consent.

Short-term insurance is 30% more expensive than an annual policy. Concluding such an agreement is beneficial when the car will be used for a certain period of time. A wide range of conditions is provided for the comprehensive insurance service for a month with RESO-Guarantee.

How to receive compensation under CASCO

To receive compensation, it is important to submit documents, the list of which is specified in the contract. The standard set includes:

• application for payment (must be written no later than 7 days after the occurrence of the insured event);
• contract;
• a check confirming payment for the policy;
• driver's license;
• inspection certificate;
• vehicle registration certificate.

The Investigative Committee also asks to provide documents from the traffic police:

• protocol on the offense;
• certificate of accident;
• resolution to initiate a criminal case.

The documents are transferred to the payment department of the Insurance Company. Based on them, they will issue a referral for a car inspection (carried out by an independent expert). After the inspection, a conclusion will be issued, on the basis of which the amount of payment is determined. Payments are usually made within 14 days after submitting documents.

A car involved in an accident should not change its location. Compensation may be denied if the participants in the accident do not act in accordance with the regulations: they try to reach an agreement among themselves, do not call the traffic police, or the car is transported by another vehicle.

Why is it unprofitable to buy a short-term CASCO policy?

Taking out a monthly CASCO policy is not always beneficial for the policyholder:

• if an insured event occurs, the amount may not be paid in full;
• The insurance company may not fulfill all the terms of the contract because it does not have time to study the situation in detail;
• insurance has no guarantees.

Due to the high cost, the policy is not available to all motorists. By concluding a short-term contract, the policyholder receives more restrictions than when purchasing a policy for a year: no right to buy in installments, apply a deductible; limited number of insurance cases.

If a car owner wants to buy a monthly policy, but does not have the required amount, insurers offer not a short-term contract, but insurance for a year in installments. But if an accident occurs, the car owner will have to pay the remaining amount to compensate for the losses.

What is the difference between a short-term policy?

If we compare a standard insurance contract concluded for a year with insurance for a shorter period, it becomes clear that the insurance conditions are generally similar. If we talk about the main difference, it lies directly in the validity period of the insurance contract.

Among the differences, you should pay attention to the price of the policy. The cost of a short-term CASCO insurance contract is calculated by insurance company specialists based on available tariffs.

When comparing prices, you should pay attention to the fact that no matter how much six-month CASCO insurance costs, it will be 30-40% cheaper than a standard annual insurance contract. That is, the benefit here is obvious. But if you take out insurance for a period of one month, it will cost much more.

Among the differences from standard annual insurance, it should be noted that most often with short-term insurance it is not possible to count on discounts, installments, benefits and deductibles.