When you plan to purchase a credit car, you cannot avoid questions regarding CASCO costs. Since voluntary insurance guarantees financial protection in the event of damage or complete loss of a car, a credit institution, when accepting a car as collateral, requires that it be insured. Refusal of CASCO when applying for a car loan entails negative consequences from a revision of the interest rate up to the requirement for early repayment of the debt.
Content
The agreement on warranty protection of the motorist's property must include general provisions that provide an explanation of the basic terms and concepts used in it.
The contract contains information about the policyholder, insurer and beneficiaries. In addition to initials and names, addresses and contact information (address, telephone numbers) are also indicated.
Essential terms of the agreement:
- item;
- insurance case;
- insurance amount;
- the amount of the insurance premium;
- deadlines for payment of insurance premiums;
- contract time;
- other conditions that are recognized by the insurer as significant.
Without binding terms, the agreement will not be legally binding. The form of the contract is mandatory in writing, with the subsequent issuance of one copy to the policyholder. The CASCO agreement is mutual, paid and real. Its participants are the insurer and the policyholder.
It acquires its legal force from the moment the first insurance premium is made and cannot be consensual.
The payment of a CASCO policy is due to the fact that one party undertakes to pay premiums, and the other must pay compensation when an insured incident occurs.
The subject of the contract is always a car. The agreement specifies its make, model, year of manufacture and technical condition. There are a number of restrictions that insurers set regarding the subject of the contract.
For example, vehicles in an inoperative state are not subject to protection, as well as those that have a low design speed and are in use by the RF Armed Forces.
An insured event is an event, after the occurrence of which, the insurer has an obligation to provide monetary compensation.
An insured incident can be:
- road accident;
- theft, car theft;
- downtime and loss of earnings during repairs;
- damage or loss of the car due to other circumstances specified in the contract as an insured event.
Not every damage or theft of a car can be regarded as an insured event. An emergency commissioner is always called to the scene of an incident and gives an assessment of what is happening.
For example, if the actions of the car owner were culpable or he deliberately contributed to the occurrence of an insured incident, then the insurer's agent will issue a statement stating that the incident is not insured.
The contract must indicate the risks that are included in the coverage. For example, you can purchase CASCO insurance with protection against theft and structural damage to the car.
Another option is insurance with protection against damage and expansion of the boundaries of civil liability. The only exception: insurers refuse protection only for the risk of theft or car theft.
The insurance amount is always indicated based on the assessment of the vehicle and taking into account wear and tear. It cannot exceed the actual cost of the car, as this is unprofitable for the insurer.
The amount of the insurance premium depends on existing tariffs and the sum insured. The agreement must specify the procedure for making payments.
You can pay CASCO in a lump sum, monthly, quarterly or semi-annually. Some insurers offer their clients installment payments and CASCO insurance for a car purchased on credit.
The duration of the agreement usually does not exceed a year, but otherwise may be specified in it at the discretion of the parties. The CASCO agreement, unlike compulsory motor third party liability insurance, does not have clear time limits.
For example, a mandatory policy is issued only for a year with subsequent extension. The validity period of the CASCO agreement may be longer than this term.
The CASCO agreement specifies a list of cases that are not covered by insurance and those in the event of which the insurer is released from liability.
The obligatory part of the contract is the rights and obligations of the parties. Each agreement also includes a section that describes the procedure for providing compensation in the event of an insured event.
The CASCO agreement must have a section that stipulates its validity period, as well as the procedure for termination and early termination.
CASCO agreements usually have a last section, which specifies ways to resolve disputes that arise during its implementation.
Sample form of a CASCO agreement.
Find out what the limitation period for CASCO is in the article: limitation period for CASCO. What CASCO insurance rules apply at VSK, read this article.
Benefits of a company policy
To understand the whole essence, you need to look into the past and plunge into history. The Rosgosstrakh company has been providing services to the population on various types of insurance since 1921. This means that for 94 years, citizens have trusted this brand to take care of the most important things.
Moreover, the controlling stake is owned by the state, which means the company has a high reliability rating.
By contacting them for CASCO insurance, you will receive an individual approach to your person from a specialist and receive such benefits as:
- calculation of damage without taking into account vehicle wear and tear;
- accreditation in all major banks of the country;
- reference information 24 hours a day and 7 days a week;
- the absence of any requirements for the maintenance of transport at night;
- the possibility of paying for insurance in installments, that is, in installments;
- a huge selection of service stations from official dealers.
How to conclude
You can apply for CASCO insurance in two ways:
- buying insurance online;
- by contacting the regional office of the insurer.
In the first case, it is necessary to evaluate the existing offer on the insurance market and select a suitable program.
After this, all you need to do is fill out an application form on the insurer’s website and send all the necessary documents. You can also pay for your purchase online now.
The policy number will be sent by email. The advantages of registering CASCO online are as follows:
- convenience and speed;
- significant discounts for clients who take out a policy virtually.
The standard way to conclude a CASCO agreement is to contact the regional representative office of the insurer. To purchase CASCO insurance, you must write an application and attach copies of documents to it.
If the insurer decides to conclude a contract, then on the appointed day you must come to the company’s office with a passport, code, driver’s license and documents confirming ownership of the insurance object.
Usually they also require you to have a certificate of state registration and a technical passport for the vehicle.
Is it possible to get a refund?
When the policyholder wants to return the money spent on a CASCO policy, he must familiarize himself with the main requirements of the insurance contract in order to figure out whether it will be possible to terminate the contract without significant material damage, while returning a share of his own premium.
Also in the rules you can find a detailed formula for calculating compensation payments, if any are provided for in principle. But in practice, the client extremely rarely receives money from the company if he terminates the contract ahead of schedule, or these payments are negligible.
Usually, there are no serious problems with getting your money back in case of early termination of CASCO insurance. If the appointed period has already passed, and the money has not been transferred to the settlement balance specified in the application, then you need to check with representatives of the insurance company at what stage the delay occurred.
Often this situation is associated with technical failures or the negligence of individual system employees. If, even after re-applying, nothing has changed, you can sue, having first collected the necessary paper evidence.
How much money can I get back?
Each situation that concerns the return of an insurance premium is considered individually. To calculate the final amount of money returned, several factors are taken into account in parallel:
- proportions of the transaction duration;
- fact of payment of insurance premiums;
- previously completed agreements;
- delay in payments from the client for the loan.
Typically, insurance companies that specialize in car loans have their own conditions for the return of insurance during the cooling period. According to the law, the return of insurance in fact is not made by the bank itself, which approved the loan, but by the insurance organization that issued the policy. Therefore, you should always calculate all solution options in advance and be careful about CASCO insurance.
CASCO under a loan agreement
Buying cars on credit is gaining new momentum today. Banks are trying to attract customers with significant discounts and loyalty programs. Some even agree to take out a loan without the “obligatory” CASCO insurance.
When drawing up a loan agreement, most companies try to follow the proven path and offer their own insurers, motivating clients with reliability and good rates.
But do not forget about the interaction between the insurer and the bank. They quite often incline to draw up an agreement on conditions that are favorable to them (first of all). It is better to evaluate the existing offer on the market before accepting an offer from a credit institution.
If it is possible to purchase a policy separately on more favorable terms, there is no need to agree to the bank’s offer.
Extension
The standard validity period of a CASCO agreement is usually 1 year. The rollover is almost always the same. You should not renew your insurance after the first call from a company representative.
It is necessary to find out in detail about possible discounts that relate to break-even driving and preferential rates for re-registration.
It is important to maintain continuity of insurance. This means that it is necessary to renew the policy before its expiration date (preferably one day).
Continuous insurance is a mandatory condition when extending CASCO insurance for a car purchased on credit. Otherwise, the bank will have every reason to apply sanctions.
The cost of insurance for the next term will largely depend on the correct assessment of the contract at its conclusion. When extending the contract, you can receive bonuses for attentive and careful driving.
What the policy does not protect against
This list is much longer than the first and has about 33 items. To shorten it a little we will combine some into one group.
The policy is not valid if:
- the driver was under the influence of alcohol at the time of the insured event;
- the damage to the car was caused intentionally by you or in conspiracy with third parties;
- the car was in a faulty condition or there was no technical inspection certificate;
- the car was not used for its intended purpose (participated in racing or was used for driving training);
- all kinds of military activities occur, as well as nuclear explosions and exposure to radiation;
- the car was driven by a person not declared in the insurance policy;
- the insured event occurred outside the policy area;
- the vehicle was damaged as a result of towing, the use of open sources of fire for warming up, or destroyed by order of the state;
- the car's parts, assemblies or components have failed due to wear or manufacturing defects;
- the car was used for various types of illegal activities (fraud and extortion);
- damage to hubcaps, tires and disks, unless otherwise provided by the insurance contract;
- theft of a vehicle due to the fault of the owner (leaving the car unlocked);
- theft or damage to other uninsured property located in the car (radio tape recorder, speakers, etc.);
- minor scratches.
How to terminate a contract and get your money back
CASCO is terminated according to a fairly simple scheme:
- a statement is written to the insurer with a request to return part of the unused insurance premium or offset it when drawing up a new contract;
- an additional agreement on termination of the insurance contract is signed;
- a portion of the unused premium is obtained or a credit is obtained when drawing up a new insurance agreement.
The safest and easiest way is to agree to offset the amount of the unpaid premium. If you go the first route and agree to provide money, then there is a high probability of not receiving it at all, since the insurer will completely deduct from the amount the premium that has already been paid for one of the risks.
How much can you expect?
How to calculate the refund amount under compulsory motor liability insurance upon termination? Before submitting your application, it would be a good idea to calculate the amount that should be returned to you after termination of the contract. It does not need to be indicated in the application; usually companies carry out the calculation correctly, taking into account, however, in their favor the maximum possible deduction amount. It is 23 percent - the organization takes 20 percent for business management (for the production of forms, use of equipment, payments to employees, etc.), and transfers three percent to the Russian Union of Auto Insurers (from this money a fund is formed for paying compensation).
The calculations are quite simple using the following formula:
Refund amount = (A-23%)/365*B (where A is the annual cost of the policy, B is the number of unused days).
Let's say the cost of the policy was 20 thousand rubles. We subtract 23 percent from this amount. 16 thousand 400 rubles remain. One day of insurance in this case will cost 44 rubles 93 kopecks. You decided to terminate the contract exactly 215 days after the conclusion of the transaction, you have an unused period of 150 days, which means that the unused portion of the funds is 6 thousand 739 rubles. This is exactly the amount the insurer must return to you, but only if the contract was terminated for the reasons specified in the MTPL rules.
Invalidation
The invalidity of a contract is a legal event on the one hand and one of the insidious ways of the insurer violating the rights of clients on the other.
For example, all formalities have been completed and all that remains is to wait for a decision from the insurance company regarding payment of compensation.
But instead, a notification comes that the contract was concluded with an employee who did not have sufficient authority at the time of signing the deal.
This is the reason for the invalidity of the agreement. Typically, grounds for invalidating a contract are discovered after the occurrence of an insured event.
At first glance, everything is regulated, but when the need to pay arises, pitfalls arise among the reasons for contractual invalidity.
The main thing is to track whether there are seals and what was included in the agreement correctly, since insurers usually do not notice errors after its conclusion.
The CASCO agreement is not mandatory, but it allows you to expand the limits of liability under compulsory motor liability insurance and protect the property interests of the insured. The essential terms of the agreement are the conditions regarding the subject, terms, sum insured and contributions.
The contract is real, paid and bilateral. The agreement is usually concluded for 1 year and the extension period is the same.
Insurers may refuse to issue a CASCO policy without specifying reasons, since it is not mandatory. The CASCO agreement can be declared invalid only on the basis of reasons that are specified in it; others cannot be considered significant.
The CASCO price for a taxi is discussed in the article: CASCO for a taxi. Information on the terms of payments under CASCO insurance in case of an accident can be found here.
About Anti-Crisis CASCO in the Rosgosstrakh company is described on this page.
Legislation
At the moment, in our country there is no individual law for CASCO, as is provided for compulsory motor liability insurance. But some issues with voluntary car insurance can be resolved by the Civil Code of the Russian Federation.
The issue of interest in this article is raised by Article 985, which states that situations that constitute a valid reason for terminating an insurance policy must be agreed upon between the parties to the transaction and the terminated parties.
The law provides the following grounds for termination of a transaction:
- disposal of a vehicle due to wear and tear or complete loss (not due to an insured event);
- car sales;
- death of the policyholder;
- if the insurer's license has been revoked.
We suggest you read: Worked without a contract, didn’t get paid, what to do.
The option cannot be ruled out - by agreement of the parties. It is rare, but it happens when the parties to the contract want to mutually terminate the CASCO policy for certain objective reasons.
But for many policyholders, another, more important issue arises: how to get their money back. Let's talk about this further so that all motorists can act correctly and profitably in such situations.
