You can understand what affects the cost of CASCO by studying the information about this type of car insurance. CASCO is a voluntary type of car insurance, which is used by drivers at their own discretion. It makes it possible to receive compensation for losses, in comparison with compulsory motor liability insurance, associated not with damage to passengers, but with the car of the policy owner. There are different options for such policies offered by insurers. Let's take a closer look at how much a CASCO policy for your car will cost.
Dependence on the type of insurance
The cost of the policy will directly depend on the type of CASCO chosen for the car.
Full CASCO
Makes it possible to obtain car insurance for any event in life:
- Emergency incidents.
- Natural Disasters.
- Falling heavy objects.
- Fires.
- Explosions.
- Turning over.
- Road accidents.
- Theft.
Incomplete CASCO
Includes several specific cases in which the car owner will receive compensation. The most popular practice of partial CASCO is insurance against damage in an accident, theft, since these are the most likely cases that can happen to a car.
CASCO insurance is not mandatory, but it allows you to prevent many different difficulties when you get into a traffic accident due to the fault of the car owner, or in other situations. One disadvantage of this agreement is its significant cost. At the same time, there are several different methods to reduce it, for example, using incomplete CASCO insurance.
What does it mean?
The purchase of an MTPL policy has become mandatory since 2003. However, this policy, which is provided for by current legislation, is not able to cover all losses caused by the owner of the vehicle. To get out of this situation, CASCO insurance was created. This policy is not obligatory; its acquisition is carried out on a voluntary basis.
A standard CASCO contract with the highest insurance compensation most often includes almost all possible risks that are listed above. But often, full insurance is too expensive for the car owner. One of the best solutions was to issue an incomplete refund. This means selecting certain types of risks, which could be a traffic accident, damage due to a natural disaster, and other risks.
Many different insurers work in this type. But we must not forget that there are some nuances associated with incomplete insurance. For example, it will be difficult to buy incomplete CASCO insurance only for theft and theft, since in the event of these cases the amount of compensation will be large.
As a result, insurance companies will incur high costs on such under-insurance contracts. This means that in addition to these damages for loss and theft, it is necessary to purchase auxiliary conditions. When selecting an insurance company where you will enter into a partial CASCO insurance agreement, you must familiarize yourself with all the rules, since the state has not established a legislative norm for this, compared to the MTPL agreement.
Features of incomplete CASCO
One of the main features of incomplete insurance was the possibility of using non-aggregate and aggregate insurance. If we consider non-aggregate insurance, then the client will receive full compensation for damage with each claim under the policy. Aggregate insurance involves the accumulation of damage. If a traffic accident occurs and compensation is received, then in the future the largest amount of compensation will be reduced by the amount already paid under the contract.
All coefficients and prices when calculating the policy are taken from the market price and offers in this type of insurance. Before contacting a specific insurance company, it is necessary to calculate the insurance price in advance. This way you can find out approximately how much a certain CASCO service will cost. There is also a standard list of cases when an insurance company will refuse CASCO payments when a client applies.
This list includes the following situations:
- It was established that the insurance case was created intentionally by the owner of the car.
- The time limit for contacting the insurer has passed.
- The case is not recognized as insured.
- All documents are missing.
- The rules for storing the vehicle or other requirements that are specified in the contract as mandatory conditions were not followed.
- There is other compelling evidence to support denial of payment.
It is necessary to take into account that if such a situation arises, you can file a claim in court. You should know that most often litigation occurs over a long period of time. Therefore, it is better to try to solve problems without going to court. If you cannot resolve the issue without a trial, it is better to get advice from a qualified specialist.
Partial or full CASCO
Often, due to a lack of money or for other reasons, the car owner is faced with a choice - to issue a partial or full CASCO insurance? Each method of such car insurance has its own advantages and disadvantages. These types of insurance have a list of significant differences that must be taken into account in order to avoid getting into an unpleasant situation in the future.
The advantages of partial CASCO insurance are:
- There are no differences in the procedure for obtaining compensation compared to regular CASCO.
- The cost of an incomplete CASCO insurance is significantly lower than a full one.
- The ability to choose your own list of insurance risks against which you need to insure a specific vehicle.
There are also many different disadvantages that are associated with taking out a partial policy. These include:
- Some CASCO services require you to purchase auxiliary services; if you refuse, you will be denied a policy.
- If the insured event was not included in the contract, then it will not be possible to receive compensation for it.
- Many insurance companies do not provide the opportunity to conclude an agreement for incomplete CASCO for certain types of cases, so it is not always possible to go to insurers where the driver has shown himself to be good.
An important point is that before concluding an agreement, you should carefully read its sections without missing anything. Most often, various difficulties and controversial issues arise due to the driver’s usual misunderstanding of the insurance conditions. All conflict situations must then be resolved only in court, without exception.
Cost of partial CASCO
Currently, the cost of partial CASCO insurance depends on a standard list of various factors that are taken into account when making calculations at an insurance company. These factors include:
- Payment in installments.
- Reducing the number of risks.
- Availability of anti-theft systems.
- Telematics system.
- Franchise.
- Driving without accidents.
If the OSAGO history is positive, that is, there are no payments under the policy, there have been no accidents, then many insurers offer a good discount of about 10% on the purchase of a CASCO policy. This rule applies most often when more than one person is included in the contract. Maximum discounts are given if the bonus-malus factor is equal to class 4, and it is greater than all other drivers on the policy.
The use of a franchise is one of the methods to reduce the cost of CASCO insurance. It can also be used for incomplete insurance. An important point is that the registration procedure has some features that are associated with the individual requirements of this particular insurance company. It often happens that using only a franchise allows you to save about 70% of the contract price.
Telematics devices that record the movement of a car and the driving mode of a certain driver have become a good way to reduce the price of an insurance policy. In some situations, it is allowed to reduce the price by half. It often happens that there is not enough money to purchase a CASCO policy. Then the best solution to this problem would be to contact an insurance company that offers an installment plan service.
But you need to know that if you get into a traffic accident, in order to receive compensation you will need to pay all debts to the insurer. Otherwise, it will be impossible to apply to the judicial authorities with a claim for compensation. This factor is always highlighted in the insurance contract. There are some nuances associated with this design.
Insurance companies with partial CASCO
Currently, there are many insurance companies offering partial CASCO services. However, the selection of an insurer should be approached responsibly. The following factors must be taken into account:
- Possession of a valid license.
- Rating by expert agency.
- The ratio of profits, payments and registered insurance cases.
- Company reputation.
If possible, you should avoid various problematic companies. This factor can be found out from customer reviews on the Internet. The best solution would be to contact a company whose rating, according to an expert agency, is equal to “A” or higher. It is also necessary to find out whether the company is bankrupt.
The most profitable offers in incomplete CASCO for 2017 are provided by the following insurance companies:
In each specific case, the price of the CASCO agreement is calculated individually. Usually there are no difficulties with this. If you need to purchase such a policy, it is better to contact several organizations at once. This way you can prevent various difficulties.
Currently, partial CASCO is one of the methods for saving a significant amount on the purchase of a policy. Therefore, this insurance option is constantly gaining popularity.
Aggregate CASCO
This insurance means that the amount of benefits you will be paid will be continuously reduced after each payment, according to the contract.
Non-aggregate CASCO
This insurance contract provides for your receiving permanent payments determined by the contract, and their size will not be affected by previous road accidents.
Factors influencing the cost of CASCO
Some factors cannot be influenced in any way, but other factors depend entirely on you. For example, it is clear that a newly licensed 18-year-old girl or guy driving around the city in a large sports car is more likely to get into an accident than a 50-year-old father with 25 years of experience who drives a small car, in addition or on a country road.
Age cannot be influenced, just like some other parameters. But there are several factors that will help reduce the cost of purchasing a CASCO policy to a minimum. Let's look at the points that make it possible to buy insurance at a low price.
Factors that the driver cannot influence
Age
Many companies have their own statistics of CASCO insurance cases. The research results allow us to make the following observation: the older the driver, the less likely he is to have an accident, but up to a certain age limit. Statistics show that the road accident rate curve for drivers after 65 years of age begins to rise. Therefore, all insurers apply increased rates for young drivers under 21 years old, or those over 65 years old.
Driving experience
The more driving experience the driver has, the less the policy will cost, and vice versa.
Policy cost
Insurance will be calculated based on the worst-case parameter of length of service and age. If several people are allowed to drive a car, then the parameters of the driver with the least experience and the youngest will be taken to calculate the price.
Additional function "multidrive"
This option works when the number of persons allowed to manage is not limited. It defines a waiver of restrictions on the number of people who are allowed to drive a car, and therefore does not take into account the age of drivers and their driving experience. However, you must pay extra to use this option. Insurers apply an increased coefficient, determined at the most expensive rate, when the driver is only 18 years old and has no driving experience.
It is recommended not to use such options, or to use options where you can enter any driver of a given age who has driving experience of at least a given number of years. Not all insurance companies may offer this option.
Factors that can be influenced by the driver
Based on car theft statistics, it is clear that some brands are especially attractive to car thieves. But there are also brands that do not steal at all. Also, the cost of repairing cars, even of the same brand, can vary greatly. Such information is necessarily used by insurers to calculate the policy. As a result, by choosing the least stolen and least expensive vehicle brand to repair, you can significantly reduce the cost of purchasing a policy.
Year of issue
As the age of the car increases, its insurance rate also increases (the cost of the insurance contract, determined as a percentage of its price). Due to the reduction in the value of a car that was used by another driver in comparison with a new car, the price of the policy may be lower compared to a new car. When a car reaches a certain age (about 10 years), insurers may not cover it at all.
Therefore, before purchasing a used car, it is better to consult with an agent whether it will be possible to insure this car at all, and what the approximate price will be. Particular attention should be paid to purchasing cars at a car dealership - if you purchase a car whose year of manufacture is older than the year of purchase, then all insurance companies will offer a higher rate compared to a car with a newer year of manufacture. Although these cars are absolutely no different, neither in price nor mileage.
When insuring a new car purchased at a car dealership, the cost of the car, which is specified in the sales contract, is taken as the main guideline for calculating the price of the policy. If you buy a used car, then the cost of such a vehicle is determined by available market prices, which usually fluctuate within certain limits, within which you calculate the insurance value of the car. You just need to indicate in your application the lower insurance limit of the market price of your car. But it is not recommended to reduce the cost too much, since if the car is stolen or completely lost, you will be paid less money, which may not be enough to purchase another car.
Transfer from one company to another
Don't be afraid to change your insurer. Most of them say that discounts accumulate when insurance breaks even, but many of them also give discounts when a client switches to them from another competitive company. In some companies, discounts can reach 30%.
Choosing a repair service
For machines that have a manufacturer's warranty, repairs are usually performed at official service centers. Vehicles for which there is no manufacturer's warranty are usually repaired in accordance with the direction issued by the insurance company in special car services with which this company has an agreement. If you want, you can choose a car repair shop of your choice, but this insurance will cost 20% more.
Many insurance companies provide the opportunity to receive compensation using several options (car service of the insurer, service of the policyholder, according to the company’s calculations, according to documents from an independent expert). Each option has its own cost, or a coefficient from the main tariff. If you want to get any savings, then the most budget option would be to use the insurer's calculations. You should know that the choice of compensation option for damage is made when drawing up an insurance contract.
Payment based on wear and tear
For vehicles that are no longer under warranty, many companies offer a “wear and tear compensation” feature. Sometimes, on very old cars, this feature may be mandatory to accept. If you purchase insurance with this feature, your premium will be lower than it would be without wear and tear.
However, when paying compensation, a contribution will be deducted from each spare part that requires replacement. When purchasing insurance, experts advise finding out what the discount amount will be for a certain option, as well as the size of the premium, in order to decide for yourself which design option to choose.
Availability of anti-theft device
If we look at the statistics of thefts across the country, insurers divide all vehicles into groups by model and brand. Each company has its own list of anti-theft devices for protecting cars, which can significantly reduce the amount of your insurance premium. Usually these are satellite security systems.
Payment for minor cases
Many insurers now offer different types of insurance. They usually differ in the procedure for settling small insurance claims. The most budget option is the one in which all cases are subject to mandatory registration with the traffic police, police, etc., even small cracks in the glass. This means that if a stone breaks your windshield or headlight, which happens often, you should stop and call the traffic police. Otherwise, you can move on, but you will have to make repairs at your own expense.
Another price option is when payments are made without certificates only for optics and glass. At the same time, many companies divide this option into several different options - without restrictions, 1 time per year, 2 times per year. There are also options with more expensive payments - repair of one or two body elements.
Many insurers have percentage limits based on the value of the vehicle on these claims. The most expensive options are those when it is allowed to declare up to half the cost of the vehicle without registration with the traffic police. The choice is made independently - what is more important for minor injuries and what is not important. It is believed that most vehicle damage is minor.
Using a franchise
This concept stands for unpaid share of damage. If the insurance contract has a deductible (usually its value ranges from one hundred to a thousand dollars, or as a percentage of the cost), then if damage to the car occurs that is estimated within this value, you will have to pay for the repairs yourself.
If a more serious case occurs, the deductible amount will be subtracted from the total amount of compensation, reducing it. When applying a deductible, you have the opportunity to receive some savings on the purchase of a policy, up to 30% of the total cost. But this saving is very doubtful, since when an insured event occurs, you will have to pay for some of the damage out of your own pocket, and the amount of the deductible is sometimes higher than the discount that is issued to you when drawing up the contract.
In this case, the deductible will be taken away in each case. Some companies have “hidden deductibles” - from the 2nd or 3rd insured event. It is necessary to clarify the availability of these deductibles when purchasing a policy from an insurance agent. The best option would be to directly indicate in the policy that there is no deductible or it is zero.
Type of insurance compensation
There are two types of compensation payments - aggregate or non-aggregate. The first of them is reduced with each case by the amount of compensation paid. The second amount remains unchanged and does not depend on the size and number of payments. For the second compensation you need to pay 10% more. Many insurance companies have only a non-aggregate form of contract.
Place of registration
Insurance rates vary depending on the region where the policy was purchased. This can be used if you purchase a policy in another region, where tariffs are lower compared to large cities.
Other factors
In addition to the factors considered, different companies may use decreasing and increasing coefficients that take into account the following conditions: VIN number of the vehicle (it is used to control the insurance history), insurance of a house or other housing, corporate discounts, if they exist with your company where you work , installment payments, etc.
It is imperative that you ask your insurance agent when drawing up a contract about the possibility of providing such discounts. If you're lucky, you might get hit by them. If you cannot decide on the choice of company, then you can contact specialists for advice.
The contract is most often concluded for one year, since the amount of vehicle insurance must be compared with the market price. It is established in domestic and foreign currencies, but compensation is carried out only in rubles.
Cost of annual CASCO
The standard price category for an insurance policy is 4-12% of the market price of the car. The increased tariffs are determined by statistics, according to which the maximum number of accidents and thefts occurs in our country. However, there are also various exceptional cases. Drivers with a clean insurance history can receive favorable terms.
There are special tables that show the cost of CASCO for one year for popular inexpensive cars. If the car costs more than 2.5 million rubles, then the cost of the policy will be from 4 to 7% of the market price of the car.
Saving on CASCO
When calculating the CASCO price, you can see that the cost of the contract varies among different insurance companies. To buy a policy cheaper, you need:
- Find out the price of the policy from different companies.
- Apply deductible.
- Select a partial CASCO package.
- You must have shares in this company, or special conditions.
There are companies that can provide individual exit options:
- “All inclusive” - other conditions are added to the basic policy at the company’s suggestion.
- “Smart” - the policyholder receives full compensation for damage no more than twice a year.
- "Naked CASCO" is the most budget option.
- “50 to 50” - the company and the client share the losses equally among themselves.
If you have insured your car and do not know whether the tariff is correct and whether all discounts are taken into account, you should also contact specialists, they will help you understand this situation.
Many car enthusiasts, especially those purchasing new and expensive (and now they are not all cheap) cars, even before the purchase itself, think about insuring their iron horse and how much the insurance will cost them.
And if in the case of compulsory motor third party liability insurance (MTPL) everything is quite simple - the rates and coefficients are fixed and the insurance premium can be calculated on the website of any insurance company, then if you want to purchase CASCO for your car, the price of the policy can vary significantly, as in different insurance companies , and depending on the type of insurance and many other factors, as a result of which the insurance premium can vary by 100, 200 and even 300 percent.
We will tell you exactly how and what factors influence the cost of a CASCO policy in this article.
So, let's take a closer look at the main factors, by manipulating which you can significantly reduce (or increase) the cost of CASCO for car insurance.
1. Type of insurance
The first thing that significantly affects the cost of a policy is the type of insurance. The client has two options to choose from:
- partial insurance- insurance only against damage, or only against theft;
- full insurance- insurance against any damage to the vehicle and against its theft.
It is not difficult to guess that the option with partial insurance will cost less, and this difference can be up to 50% of the cost.
2. Franchise
The second most influential factor on the final cost of an insurance policy is the deductible, or rather its presence or absence, as well as its size.
A deductible is an amount specified in the insurance contract that is deducted from the payment for an insured event. Thus, using a franchise, insurance companies protect themselves from clients with minor damage (usually up to 30 thousand), and the policy buyer receives more favorable conditions and an interesting price.
3. Method of compensation
The method of compensation for losses in an insured event that you choose has a slightly less impact than the deductible on the cost of insurance. There are usually three options to choose from:
- cash payment- payment of assessed damage in cash or transfer to the client’s bank account;
- Service station at the policyholder's choice- payment for repairs at a service station chosen by the purchaser of a CASCO policy (including from an official dealer) - the most preferable option;
- Service station at the insurer's choice- repairs at a service station with which your insurance company has internal agreements are not always of high quality and honest.
The methods of compensation for losses are listed above in decreasing order of the cost of the CASCO policy, that is, a cash payment will make the cost of the insurance policy more expensive than repairs at the insurer’s service station.
4. Accounting for wear and tear
Another factor that can reduce the cost of the policy by approximately 15% is taking into account the wear and tear of the vehicle upon the occurrence of an insured event. In this case, as you might guess, there are only two options to choose from:
- payments excluding depreciation- the full cost of new spare parts including labor is paid;
- depreciation payments- the cost of new spare parts with work is paid, but minus the wear and tear of your car as a percentage, i.e. In fact, the money you receive will not be enough for repairs with new spare parts.
Thus, if you want your car to be completely repaired and new parts installed, choose insurance without taking into account wear and tear - even if it is a little more expensive, you are guaranteed to have enough money paid to repair the car with new spare parts.
5. Sum insured
In this case, we are talking about whether the sum insured will decrease after each payment as a percentage of the indemnified amount. There are two options here:
- aggregate- or reduced sum insured;
- non-aggregate- irreducible amount.
A policy, the terms of the contract of which will indicate the aggregate sum insured, will cost you a little less.
6. Experience and age of drivers
This item has a significant impact on the cost of CASCO, however, it is the last on our list, since, usually, nothing can be done about it - you cannot change the driver’s age or his experience.
The dependence here is simple - the less experience and age of the driver, the more expensive the insurance policy will be for him. If the car will be driven by several people, it is worth considering the option of insurance without a limit on the number of drivers. Sometimes it can be even cheaper than a policy for a novice driver.
7. Other factors
Also, the cost of the policy may be slightly influenced by some other factors, such as: the period of insurance, the presence of anti-theft systems, the insurance history of the policyholder or installment payment.
As you can see, the cost of vehicle insurance is influenced by a fairly large number of different factors, but after reading this article, you now know which of them and how you can save money first.
You can calculate and purchase a CASCO policy, as well as many other insurance products, on one of the websites of insurance companies. For example, the well-known insurer VUSO on its website http://vuso.ua/ offers a wide variety of insurance products for all occasions.
The insured amount is one of the most important terms of the CASCO contract, because it significantly affects the price of insurance and the size of the potential payment. In most cases, car owners do not pay enough attention to the amount of the insured amount, which leads to negative consequences when paying.
We are talking about determining the amount of payment upon the occurrence of an insured event. How exactly will a change in the sum insured affect the amount of compensation? In searching for an answer, one cannot help but remember another key aspect of a voluntary car insurance contract – the insured value of the car.
Insurance value
The insured amount depends on the market value of the car. The latter is a constant value only when it comes to a new car, because in this case its price is determined on the basis of a sales contract.
When insuring a used car, insurance company managers typically use one or more of the following sources of information.
- Car sales sites.
- Own directories of the insurance company.
- Specialized reference publications.
Most often, insurance department specialists use the first option. At the same time, there is a significant variation in prices for a specific car model of a certain year of manufacture. This gives the policyholder the opportunity to independently determine the final insured value, and therefore the insured amount.
If the latter is within the limits of the minimum and maximum market price, the car owner will not face catastrophic consequences when settling the loss. However, he will still feel the effect of the change in the sum insured under the following circumstances.
- Complete loss of the car.
- Theft or theft.
In both cases, the amount of compensation will change greatly due to the enormous magnitude of the damage. The theft of a car or its total destruction entails the maximum possible payment, and we are talking exclusively about monetary compensation.
The lower the insured amount, the less the car owner will be paid.
Moreover, in the event of damage to the car (without complete loss), the insurance company will settle the loss within the amount of actual damage. That is, it will either pay for the repair in full or transfer to the car owner an amount sufficient to restore the car.
Trespassing
If the insured amount goes beyond the actual value of the car, the car owner will face very serious consequences. And not only after theft or total damage, but also in case of minor damage to the car. Here it is necessary to divide the topic under consideration into two categories. So, the sum insured can be:
- Overpriced.
- Greatly underestimated.
This division is simply necessary, because in each case the car owner faces different consequences. In some situations, changing the sum insured may be beneficial for the client, but only if he acts consciously.
Overestimation of the sum insured
The size of the payment depends on the value of this parameter: the higher the sum insured, the more the insurance company will pay in case of theft or “total”. At the same time, the price of the policy will also increase, but some car owners are ready for such an overpayment in order to increase the payment.
However, in practice there will be no benefit from the extra costs. By law, the insured amount cannot be more than the actual price of the insured car. Otherwise, some citizens could engage in deliberate damage to the insurance object.
Underwriters of insurance companies strictly monitor compliance with this legislative norm. However, there is always the possibility of managerial oversight. What happens if the contract specifies an insured amount that exceeds the market value of the car? There are only two options for the development of events:
- The insurance company will go to court to invalidate the contract.
- The car owner will be paid compensation based on the maximum market value of the car on the day the insurance was taken out.
There is no point in inflating the insurance amount if it exceeds the actual price of the property.
In the best case, the amount of compensation will be determined based on the market value of the car. At the same time, insurance companies often strive to use the first option, that is, they simply return the money paid for insurance to the policyholder. If the court supports the insurance company’s arguments and invalidates the contract, the car owner will have to repair the car at his own expense.
Understating the sum insured
If the limit of the maximum financial liability of the insurance company under the contract is lower than the insured value, managers will definitely apply the insurance proportionality coefficient. For example, if the insured amount is half a million rubles and the real value of the car is one million rubles, a coefficient of 0.5 will be applied.
Simply put, after an insured event, the company will pay only fifty percent of the actual damage. Moreover, we are talking about all incidents without exception, including theft and constructive loss of a car.
Understating the sum insured beyond the market price of the car entails extremely negative consequences when an insured event occurs.
However, in rare cases, this insurance option is very useful. Often, owners of secured cars owe the bank ten to twenty percent of the total loan amount. In such a situation, some credit institutions allow borrowers to insure vehicles for the amount of the outstanding loan balance.
It turns out that the borrower will purchase a CASCO policy for only ten to twenty percent of its real cost. This option is needed solely to fulfill the bank's requirement for car insurance. There is no need to talk about real insurance protection, when the car owner will have to pay more than eighty percent of the cost of repairs on his own.
If you find it difficult to make a decision on choosing a company or do not have time to study the insurance conditions of several insurance companies, just call us at any of the numbers listed or send a request by email. We have studied these conditions for a long time and will help you make the best choice and answer your questions. We will take into account all the conditions under which you will receive discounts from the insurance company and, in addition, we will give you an ADDITIONAL DISCOUNT at the expense of our agent commissions.
When calculating the cost of a CASCO policy, many factors are taken into account.
Some of these factors are beyond your control, while others are entirely up to you. For example, it is quite obvious that a teenager who has just received his license, driving around the city in a powerful sports car, has a much greater chance of getting into an accident than a 35-year-old father of a family with 10 years of experience, driving a car of average power, and even then, mainly for city.
Of course, you will not be able to influence your age and a number of other characteristics, however, there are a number of points that can significantly reduce your costs for CASCO insurance to a reasonable minimum. Here is a brief description of the points, knowledge of which will allow you to purchase CASCO insurance at a good price.
not depending on you:
Age of drivers. Almost all insurance companies keep statistics of insurance claims. At the same time, the results of all studies provide an interesting observation: the older the driver, the lower the likelihood of him getting into an accident. But, up to a certain age. Statistics show that the curve for the number of accidents among drivers over 65 years of age sharply creeps up as their age increases. Therefore, almost all insurance companies use increasing coefficients for drivers under 21-22 and over 65 years of age.
Driving experience. The more experienced the drivers, the cheaper the insurance will be, and vice versa.
Important!
The price of the policy will be calculated based on the worst indicator of age/experience. If several drivers are allowed to drive a vehicle, then the data of the youngest (oldest) and inexperienced driver will be taken into account when calculating the cost of insurance.
“Multidrive” option (No limit on the number of persons allowed to drive). This option involves refusing to limit the number of drivers allowed to drive, and, consequently, ignoring age/experience parameters. However, you will have to pay extra to use this option. Insurance companies use a multiplying factor, usually equal to 1.5.
Conclusion. If there is no urgent need, do not include a less experienced driver (or drivers under 21-22 and over 65 years old) on your insurance policy. This will allow lower rates to be applied based on the age and length of service of the driver. If you still need to entrust the driving to such categories of drivers, calculate whether it may be more profitable to buy a policy with the “multidrive” option.
Factors influencing the cost of a CASCO policy depending on you:
Car make and model. Theft statistics show that certain car models (brands) are of particular interest to car thieves. At the same time, there are models that are practically not stolen. In addition, the cost of repairing cars (often even for representatives of the same class) varies significantly. This data is necessarily used by all insurance companies when calculating the cost of insurance. Thus, by choosing a car that is less stolen, you can significantly reduce the cost of insuring it;
Year of car manufacture. As the age of the car increases, its insurance rate increases (insurance rate is the cost of insurance expressed as a percentage of its value). Due to the reduction in the cost of a used car compared to a new one, the price of insurance may be lower than for a new car. Once a vehicle reaches a certain age (varies among different insurance companies), insurance companies stop taking cars for insurance altogether. That is why, before buying a used car, check whether it can be insured and how much it will cost;
Vehicle cost. When insuring new vehicles from a car dealership, the cost of the vehicle specified in the Sales and Purchase Agreement is taken as a basic guideline for determining the price of the insurance policy. If we are talking about used cars (or if you do not provide a copy of the Sale and Purchase Agreement for a new car), the cost of the vehicle is determined based on existing market prices. Market prices for vehicles always fluctuate within certain limits, within which you determine the insurance value of the vehicle. Just indicate in your insurance application the lower limit of the market price of your car;
Transition from one insurance company to another. Very often, insurance companies provide a discount when an insurer who previously used the services of a competing insurance company switches to them. Typically the discount is 5%;
Selecting a vehicle repair service center. For vehicles covered by the manufacturer's warranty, repairs are always carried out at the service centers of an authorized dealer. At the same time, a mandatory condition for many companies is to provide a copy of the service book with notes on the timely completion of the next maintenance. Vehicles that are not covered by the manufacturer’s warranty are repaired at the direction of the insurance company in specialized services with which the insurance company has an agreement. At your request, instead of restoring the car, you can be paid compensation in money (cash or by transfer) according to the calculation of an independent appraiser. The insurer, if desired, can choose a service at its discretion, but such insurance will be 20% more expensive. It is worth noting that the choice of damage compensation option is made when concluding the Insurance Agreement;
Anti-theft system for your car. In accordance with theft statistics, insurance companies group vehicles by make and model. At the same time, each group is assigned mandatory requirements for anti-theft systems. Some models will not be accepted for insurance without an installed and connected satellite search system. While for certain categories of vehicles a standard immobilizer or a simple electronic system for blocking ignition circuits is sufficient. In addition, it is worth keeping in mind that some companies still accept cars for insurance without presenting certain requirements for anti-theft systems, but at the same time such insurance companies use significant increasing coefficients. Therefore, only after studying in detail the conditions and cost of insurance from various companies, you will be able to determine the best option for you;
Application of a franchise. The deductible is the unpaid portion of the damage. If the Insurance Agreement provides for a deductible (as a rule, its size ranges from $100 to $500), then in case of damage to the vehicle estimated within this amount, you will pay the cost of repairs yourself. If more serious damage occurs, the deductible amount will be deducted from the total amount of insurance compensation, thereby reducing it. When using a franchise, you have the opportunity to save 5–35% of the cost of insurance on purchasing a policy. However, this saving seems doubtful to us, because when an insured event occurs, firstly, you will have to compensate for part of the damage yourself, and secondly, when using a franchise, the insurance company is tempted to underestimate the cost of restoration repairs for (minor damage) in order to squeeze it into the framework of the franchise. Remember that most vehicle damage is “minor”;
Type of sum insured. There are 2 options for paying the insurance amount: reduced (aggregate) or non-reduced (non-aggregate). The aggregate insured amount decreases with each insured event by the amount of the insurance compensation paid. The non-aggregate insurance amount remains constant regardless of the number and size of payments. For a non-aggregate insurance scheme you will have to pay 5-25% more.
To insure yourself, you need to tell us by phone or email your delivery address and your contact phone number. The policy will be delivered to you completely free of charge and issued in your presence. You can also send us the necessary information by email in advance and the policy will be delivered to you already filled out - all you have to do is sign it.
