The term OSAGO first appeared in the United States in Massachusetts back in 1925. OSAGO obliges every driver in the state to take out an insurance policy. After a while, drivers in all US states were required to receive insurance. Currently, the idea of universal insurance has spread to many countries around the world.
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What is OSAGO
Mandatory Automobile Liability Insurance. The object of MTPL insurance is property interests associated with the risk of civil liability of the owner of the vehicle for obligations arising as a result of harm to the health, life or property of victims in the territory of the Russian Federation.
What is CASCO
Voluntary motor insurance. Abbreviated as .
CASCO insurance is not mandatory and is taken out by car owners independently.
Features of CASCO and OSAGO insurance
By purchasing an MTPL policy, the car owner protects himself from problems that arise in the event of an accident. OSAGO is especially useful and necessary in the event of an accident (more about). In this situation, the insurance company is obliged to pay for the damage caused by the car owner. Registration of compulsory motor liability insurance allows the car owner injured in an accident to receive monetary compensation for vehicle repairs.
In case of mutual fault of a number of drivers, the amount of payments is made after determining the damage suffered by each driver.
An insured event is considered to be all emergency situations in a road accident that occurred during the validity of the contract concluded between the car owner and the insurance company. Insurance also covers cases resulting in damage to the health and life of participants in an accident. In the latter cases, as a rule, the case goes to court and obliges the insurer to make appropriate insurance payments.
CASCO allows you to repair the car in all cases provided for by law, and also allows you to compensate money in the amount of the cost of the car to the owner in the event of theft or destruction.
How much does OSAGO cost?
Tariffs for the purchase of compulsory motor liability insurance are the same for all car owners and are regulated in accordance with the legislation of the Russian Federation.
When applying for insurance, the policyholder takes into account the previous driving experience - all insurance cases of the car owner and the degree of his guilt.
In case of long-term operation of the car without accidents, the car owner receives a 5% discount on insurance.
How much does CASCO cost?
The price of CASCO is by definition more expensive and does not have a uniform tariff. Insurance companies determine their own rates.
The cost of CASCO insurance depends on a number of indicators:
- type of ownership;
- region of registration of the vehicle;
- age and driving experience of the vehicle owner;
- type of vehicle;
- vehicle power;
- terms of insurance registration.
The CASCO agreement has some nuances:
- the owner may be denied insurance if the car does not have enough security equipment or the car is old;
- When taking out a policy, the method of transferring funds for insured events is determined.
Why take out OSAGO if you have CASCO insurance?
CASCO is voluntary insurance. The advantages of the policy are that in the event of an accident, the car owner has the opportunity to repair his car at the expense of the insurance company. It turns out that CASCO covers all accidents.
If the CASCO policy is so good, why do you need MTPL?
OSAGO is mandatory at the legislative level. Without an MTPL policy, the car owner has no right to use the car.
The disadvantage of mandatory insurance is that it covers repairs to the injured party's vehicle. And if the car owner’s car suffers through his own fault, he will have to repair the car himself.
What to choose between CASCO or OSAGO
Not every car owner knows the difference between the two types of insurance. Having received a mandatory MTPL insurance policy, the car owner must take into account that he is not insuring the car, but the citizen’s liability for damage caused.
This means that as a result of an accident, the insurance company, on the basis of an agreement concluded with the owner of the car, is responsible for the citizen responsible for the accident and is obliged to compensate for damage to someone else’s property or harm caused to the health of the victim in the accident.
In accordance with the Federal Law “On Compulsory Motor Liability Insurance”, a maximum coverage amount of 400 thousand rubles is provided. In certain cases, the insurance company has the opportunity to refuse to pay compensation to the victim.
For example:
- in case of alcohol intoxication of the car owner;
- if the person responsible for the road accident leaves the scene of the accident without permission;
- failure to provide the damaged vehicle for damage assessment.
In the listed cases, recourse claims are applied to the culprit of the accident - a claim for compensation to the victim.
Disadvantage of OSAGO:
- OSAGO does not compensate for damage caused to the car of the person responsible for the accident.
Advantages of OSAGO:
- The MTPL insurer is the state, and CASCO insurance is issued by commercial organizations.
- The price for an MTPL policy is set according to certain coefficients established by law and it does not depend on the owner’s driving experience, age and cost of the car.
- Affordable insurance policy price. For example: the cost of MTPL insurance for a C-class car ranges from 3,000 to 5,000 rubles, the price of CASCO insurance for this car reaches 100,000 rubles.
- OSAGO provides discounts for accident-free driving.
If OSAGO insures motor third party liability, then CASCO insures the property of the car owner - the car (its damage, total loss or theft). Taking out CASCO insurance is optional by law.
Advantage of CASCO:
- CASCO will allow you to compensate for damage to the insurance owner’s car, regardless of the degree of guilt in the accident. The CASCO owner who was injured in an accident must contact his insurer for this. It should be noted that the insurance company will also not be left at a loss - it will recover the amount paid to the victim from the person responsible for the accident.
Disadvantage of CASCO:
- The procedure for insurance and CASCO payments is not regulated by law and operates exclusively within the framework provided for by the Civil Code, special regulations and the Federal Law “On the Protection of Consumer Rights”.
- CASCO insurance is significantly more expensive.
- There is no clear regulation of insurance prices.
- The cost for each case is individual and depends on many factors: car model, cost, age, statistics on the frequency of model theft, statistics on traffic accident violations of the car owner and other factors.
Similarities between CASCO and OSAGO
All insurance companies that issued a CASCO or MTPL policy have the right to refuse to pay insurance to persons who were intoxicated at the time of the accident.
Differences in CASCO and OSAGO payments
If the culprit of the accident is the owner of the compulsory motor liability insurance, the victim must contact the company that issued insurance to the offender. The insurance company undertakes to evaluate and compensate for the cost of all repairs. The offender carries out repairs to his car using his own funds.
If the owner's car is damaged due to the fault of another driver, the victim can recover damages by contacting the offender's insurance company, which, in turn, is obliged to assess and compensate an amount equivalent to the cost of repairs.
Estimation of the amount of compensation under compulsory motor liability insurance:
- the amount of damage incurred is calculated taking into account the wear and tear of the car damaged in the accident using the standard formula for the relationship between the age and mileage of the car;
- maximum payment under compulsory motor liability insurance: 400,000 rubles;
- If the cost of car repairs exceeds RUB 400,000, the victim can recover the difference from the person responsible for the accident.
If at the time of the accident the insurance company that issued the policy to the culprit of the accident ceased to exist, the victim must contact the RSA, which is responsible for the insurance obligations of OSAGO, or file a claim for damages with the judicial authorities.
In this case, RSA is not liable for CASCO insurance. In the event of termination of the activities of the company that has issued CASCO insurance, the issue of compensation for damage is resolved exclusively through the court.
Estimated amount of compensation under CASCO:
- the cost of repairs should not exceed the cost of the car;
- in the event of a complex accident, the repair of two cars should also not exceed the cost of the car of the person responsible for the accident.
Conclusion
Every car owner is required to register for compulsory motor liability insurance, whether he wants it or not. Whether or not to apply for CASCO is up to the car owner to decide. When refusing additional insurance, you need to remember that OSAGO protects exclusively civil rights and cannot protect the owner’s car from damage and theft.
Modern realities allow anyone to insure their life, health and property, and feel calm. People decide for themselves where they are most vulnerable and need “straw.” There are hundreds of insurance programs, and only one of them stands out - this is MTPL insurance for a car. The motorist has no opportunity to refuse it. However, many have heard about another abbreviation, also related to car insurance - CASCO. This is a voluntary type of insurance, which has many differences from compulsory motor liability insurance. Today we will tell you what the difference is between CASCO and OSAGO, and the information presented will be especially useful to car owners who have recently bought a car.
Vehicle insurance is a mandatory procedure in Russia, regulated by law. The first traffic police inspector who “catch” the driver will issue him a fine of 800 rubles. The “imputed type” of car insurance is called compulsory motor liability insurance, and in the event of an accident, this policy will cover the expenses of the innocent driver, and will allow the culprit not to pay for someone else’s repairs from his own pocket.
But you will still have to pay to restore your own car. Those who do not want to do this choose additional car insurance - CASCO. This is a voluntary type of insurance that will save nerves and money in case something happens to the insured car. CASCO covers not only accidents; the list can include an extensive list of troubles, including thefts, car fires or damage due to natural disasters. Now let’s take a closer look at the differences between CASCO and MTPL, besides the mandatory or voluntary approach to insurance.
What is OSAGO
OSAGO is liability insurance of the car owner to other drivers. The abbreviation stands for “compulsory automobile civil liability insurance,” in other words, the insurance does not apply to a specific car, but is a kind of guarantee to other motorists. In the event of an accident, this policy covers three things:
- damage caused to another vehicle;
- damage caused to another driver or passengers;
- damage caused to pedestrians.
Simply put, if a driver gets into an accident and crashes someone else’s car or injures a pedestrian, the insurance company will pay the amount of damage for him.
It is important to understand that a driver injured in an accident will contact the at-fault driver’s insurance company to seek compensation.
The driver needs a compulsory motor liability insurance policy from the moment ten days have passed after purchasing the car - this time is given just for registration actions. After the insurance procedure, you should always carry the document with you or be ready to demonstrate it on the screen of your gadget if the compulsory motor liability insurance is issued in electronic form. You can include several drivers in the policy, or you can purchase “open” insurance - then anyone who has the right to drive can get behind the wheel of a car. Why is this necessary?
Often, relatives who also use the car or other close people are included in the compulsory motor liability insurance – in case of an unforeseen event. An “open” policy is often taken out by legal entities or people renting out a car, for example, as a taxi. This is convenient in situations where it is impossible to know in advance who will be the driver of the vehicle.
How to get OSAGO?
To become the owner of compulsory car insurance, you need to choose a company that provides similar services in your locality. Note that many drivers choose an insurer based on the price of the future policy, so it is advisable to first contact several organizations and make calculations.
The insurance agent must provide the following documents:
- Car owner's passport.
- The rights of all persons who are planned to be included in the policy.
- Vehicle inspection certificate valid for a year.
- Documents for the car (PTS, registration certificate).
How much does OSAGO cost?
There is no single price for compulsory car insurance. Tariffs for compulsory motor liability insurance are set by the Central Bank, but the amount will be individual for each driver. It consists of the total driving and accident-free experience, the year of manufacture of the vehicle, its power and even the side on which the steering wheel is located (it is more expensive to insure a right-hand drive car). These parameters are called calculated and each of them is affected by increasing and decreasing coefficients.
For example. The cost of compulsory motor liability insurance for a driver from Moscow over 22 years old, with a driving record of 5 years, who owns a passenger car with a capacity of up to one hundred horsepower, will be nine thousand rubles per year.
Most often, insurance companies provide discounts to regular customers who buy policies from them year after year, while driving carefully and not getting into accidents through their own fault. For such motorists, a price reduction of up to fifty percent of the base rate is provided, the so-called “break-even bonus.” In Russia, this rate is three to four thousand rubles.
Validity period of the MTPL policy
The classic option for obtaining compulsory insurance is one year. This is the maximum period of validity of compulsory motor liability insurance, after which it is necessary to re-insure. The minimum insurance period is three months; you can also choose intermediate compulsory motor liability insurance – for six months.
Payments under OSAGO
The MTPL rules indicate the maximum payments that injured road users who are involved in an accident can receive. Let's look at these amounts.
Table 1. Maximum amounts of payments under compulsory motor liability insurance
Payments for damaged property are calculated as follows:
- if the property is damaged, the insurance company will compensate for the costs of bringing it to pre-accident condition;
- if the property is completely destroyed (repairs are equal to or exceed its pre-accident value), its market value at the time before the accident occurs is paid;
- other expenses related to the accident are paid (payment for a tow truck, work of emergency commissioners, etc.).
Regarding injured people, they are compensated for the amount spent on treatment and the purchase of pharmaceuticals and money not received at work as a result of sick leave.
For compulsory motor liability insurance, simplified payments are also provided, which apply only in situations where damage is caused only to property, and the amount of damage does not exceed 50 thousand rubles. In this case, the driver of the injured vehicle can contact his insurance company (and not the insurer of the person responsible for the accident) and receive money or the opportunity for free repairs.
What does MTPL not cover?
A driver who is going to contact an insurance company to receive compensation under compulsory motor liability insurance should know which cases are not considered suitable for payments. The MTPL policy does not include:
- Road accidents during training driving, competitions, races, vehicle testing;
- damage to vehicles during transportation of goods, loading and unloading;
- injuries or deaths in an accident involving a single vehicle (without the participation of a second driver);
- in case of an accident committed with malicious intent (in the hope of receiving insurance payments);
- Damage to a vehicle as a result of natural disasters, war, demonstrations and rallies and other force majeure.
What is CASCO?
The abbreviation CASCO stands for “comprehensive automobile insurance, except liability.” It follows that voluntary insurance only covers damage associated with the insured vehicle. However, this should not bother the owner - he still has MTPL, which insures liability.
CASCO insurance allows the vehicle owner to receive full compensation for any incident that occurs with the vehicle - on the road, while driving, or in the parking lot, even if the car is parked in a garage.
What is included in CASCO?
Each company establishes a complete list of insured events that can be covered by voluntary auto insurance individually. To have an idea of CASCO loyalty, we will present some of the most common situations in which a car owner can count on compensation:
- an accident involving two or more vehicles (regardless of who is at fault);
- an accident without other vehicles (drove into a ditch, crashed into an obstacle, a tire burst on the highway, etc.);
- The vehicle was damaged by falling snow and ice from the roof of a house or in a similar case (a heavy object fell or was thrown, a stone flew into the windshield, etc.);
- the parked car was scratched, the mirror was knocked off, the wheels were “removed” or other damage was caused;
- The vehicle was damaged by a natural phenomenon (hail, lightning, flood, etc.);
- the car was stolen;
- auto fire that destroyed a vehicle and the like.
It is easy to understand that the insurance company is ready to provide protection against any misfortune that can happen to a person's four-wheeled property. The completeness of the list of insurance cases depends only on the amount that the motorist is willing to pay for CASCO.
There are also times when a car owner is obliged to buy CASCO insurance. This applies to new cars purchased on credit from a dealership. Most Russian credit institutions make the purchase of a CASCO policy an indispensable condition for obtaining a loan. As long as the car is collateral, the CASCO agreement will need to be renewed annually.
CASCO cost
The high price of voluntary insurance is a logical disadvantage of this whole event. Insurers, of course, do not risk their own money and do not hesitate to raise the cost of CASCO at their own request. Note that, unlike the price of compulsory motor liability insurance policies, prices for voluntary insurance are not regulated by anyone except the insurance companies themselves.
In addition, CASCO insurance is not available for every car. Insurers usually refuse cars that are too old, as well as cars that are not sufficiently protected by the owner (for example, a weak security alarm). Also, CASCO may be denied to the owner of an overly expensive or exclusive car. For example, if handmade graffiti is applied to the body of a car, then compensation for even a small scratch can amount to tens of thousands of rubles.
It is difficult to name the amount that the owner will pay for a year of using a CASCO policy. Typically, the annual premium is 10-12% of the value of the car that will be insured.
Franchise under CASCO
A way to make a voluntary insurance policy somewhat cheaper is to sign a franchise agreement with the insurance company. According to this agreement, part of the compensation for damage caused is paid by the owner himself, and part by the insurance company. For example, when concluding the contract, a franchise of 30 thousand rubles was agreed upon. After a while, the motorist had an accident, the cost of repairs after which will be 65 thousand rubles.
Thus, the insurance will return 35 thousand rubles to the owner of the car, and he will pay the amount specified in the franchise - 30 thousand rubles - on his own. Accordingly, the higher the cost of the CASCO franchise, the cheaper the policy itself will cost.
Video - OSAGO and CASCO: what they are and basic principles
Let's sum it up
As we can see, the difference between OSAGO and CASCO is colossal. The first type of auto insurance is strictly required for everyone and protects motorists from financial liability in the event of an accident. The price for compulsory motor liability insurance is set by the Central Bank, and a fine is imposed for the absence of a policy.
CASCO insurance is voluntary, expensive and protects only the client’s property. Motorists who are willing to pay money can secure their car completely and not worry that they will be left without an “iron horse.”
Whether to combine both types of insurance policies or use only the mandatory one - everyone decides for themselves. Despite a lot of differences, CASCO and OSAGO also have one thing in common - they save time and nerves of the car owner, and protect his wallet in case of an unforeseen situation.
In the field of motor transport insurance, two types of insurance are most widespread: CASCO and OSAGO.
CASCO- insurance of cars or other vehicles (ships, planes, wagons) against damage, theft or theft. Does not include insurance of transported property, liability to third parties, etc.
OSAGO- compulsory motor third party liability insurance, in which the object of insurance is property interests associated with the risk of civil liability of the vehicle owner for obligations arising from harm to the life, health or property of victims when using the vehicle.
Many car enthusiasts have traditionally asked themselves the question of the difference between them, and are also trying to figure out which one is better.
Two main types of car insurance
Driving is fraught with many dangers. After all, a car enthusiast cannot even predict his behavior in an unforeseen situation. Moreover, it is impossible to guarantee adequate actions on the part of other traffic participants. That is why every car is subject to insurance. The most common insurances today are CASCO and OSAGO.
The first option involves taking out insurance on a voluntary basis. The legislation does not contain clear rules on the procedure for paying damages, as well as the amount of compensation. These issues are specified in the terms of the agreement concluded by the parties. While OSAGO provides for compulsory civil liability insurance. If the driver has, then the traffic inspector has the right to impose a fine on him.
The amount of insurance payments is established at the legislative level. In addition, the maximum amount of payments upon the occurrence of an insured event is limited. If the damage is greater, the guilty party must cover the difference at its own expense.
Distinctive features of CASCO: insurance cases
The list of insured events is determined by the Voluntary Insurance Rules. According to them, CASCO covers the following risks:
- Damage to the car or its individual elements as a result of a collision with another vehicle. It should be noted that this clause covers an accident involving two or more moving vehicles.
- A collision with a car belonging to the insured person by another car. Moreover, the first car was not a participant in the traffic during the accident.
- Colliding with a building, other stationary objects, pedestrians or animals.
- The vehicle overturns or falls into water.
- Various objects falling on the car, for example, parts of buildings, blocks of ice, etc.
- Criminal actions of third parties. This includes theft or theft of a car, theft of its individual elements or violation of its integrity for hooligan reasons.
- Damage to the vehicle resulting from the actions of road maintenance, utility or technical services.
- Fire, combustion or explosion.
- A natural disaster confirmed by a relevant certificate from the Ministry of Emergency Situations.
- External damage to the machine as a result of animal actions. This risk does not cover damage to the interior caused by an animal inside the car.
- Industrial or man-made accident.
- Violation of the integrity of the car by objects that fly out from under its wheels, etc.
Distinctive features of MTPL insurance: insured events
Briefly, the essence of OSAGO comes down to the fact that the owner protects someone else’s car, not his own. Therefore, if a motorist is found to be at fault for an accident in which someone else’s vehicle was damaged, then the damage falls on the shoulders of the insurance company. It is important to remember that an insured event occurs only during the operation of the car, which implies its movement. If the car was standing still, that is, there is every reason to assert that the vehicle was not in use at that moment.
The last rule is easiest to understand with a simple example. The driver left his car in the parking lot. A garbage truck was passing by and accidentally hit a standing car. This incident is covered by insurance because the garbage truck was in motion. At the same time, if it stopped and the debris in it fell and damaged the standing car, then this will no longer be an insured event.
An insured event under compulsory motor liability insurance means the civil liability of the car owner, which occurs for damage caused to property, health or even the life of the victim.
A prerequisite is a cause-and-effect relationship between the control of the machine and the harm that occurs. Moreover, payments are made only in favor of the injured person.
The following are considered insured events under compulsory motor liability insurance:
- hitting a pedestrian, resulting in damage to the latter’s health or death;
- the driver or passengers of another car were injured;
- the vehicle was damaged as a result of an accident;
- The accident resulted in damage or destruction of property belonging to third parties.
Basic forms of CASCO insurance
Depending on the volume of insured risks, CASCO is divided into full and partial. Full CASCO implies protecting the car from the widest possible range of all kinds of troubles. The classic version provides protection against the following risks:
- an accident resulting in damage to the vehicle, including its complete destruction;
- theft of a car, as well as its theft or theft;
- loss or damage to individual machine elements;
- illegal actions of unauthorized persons, which resulted in damage to the machine;
- natural disasters;
- an act of force majeure falling under the definition of force majeure;
- foreign objects falling onto the machine.
It should be noted that full CASCO guarantees compensation for damage from any illegal actions of third parties, including theft, theft and damage.
Most drivers do not see much difference between concepts such as kidnapping and theft. For them, the main thing is the fact of the disappearance of the car. But from a legal point of view, kidnapping and hijacking are completely different criminal offenses. Therefore, if the insurance covers protection against theft, then theft will not be considered as an insured event.
Partial CASCO insures the car against various types of damage. But it does not cover cases of car theft and theft. As a rule, partial CASCO covers the following risks:
- Road accident, collision, car falling into water or from a height, overturning or fire;
- ingress of foreign objects that flew off the wheels of the insured car or other cars, collapse of the road, bridge structures, etc.;
- fire, explosion, lightning strike;
- natural disaster and atmospheric phenomena that are considered uncharacteristic for a particular area;
- causing damage to the car;
- various objects falling on the car (trees, building elements, frozen snow);
- illegal actions of unauthorized persons (this does not include the theft of a machine or its individual elements);
- external damage to the machine resulting from the actions of domestic or wild animals.
The list of insured events is contained in the terms of the contract. The car owner should carefully study it before signing, since often the insurance company even includes a shortened list of risks even in the full CASCO insurance.
What the MTPL policy does not protect against
The presence of compulsory motor liability insurance does not mean that the insurance company will automatically cover damage in every case when its root cause was the actions of the guilty person. The list of cases that the policy does not protect against is as follows:
- The owner of the car was not insured or his policy had already expired at the time the damage occurred.
- The victim suffered only moral or material harm, which consists of lost profits.
- The harm occurred during the use of the insured car for driving lessons, for participation in races or various types of tests. Payment of insurance is possible only if this risk is specified in the contract.
- The victims suffered from the effects of the cargo that was transported in the insured car. Compensation for damage is possible only if this risk is specified in the contract.
- The damage was caused by a person who performed his duties under an employment contract.
- To compensate for losses of the employer whose employee was injured.
- The damage was caused by the trailer, cargo, or equipment installed on the vehicle.
- The damage was caused during loading or unloading work.
- Intellectual property, jewelry, antiques, etc. were damaged.
- If the amount of damage is greater than the insurance payment according to the terms of the contract. In such circumstances, the guilty person must cover the difference at his own expense.
- If the insured person was intoxicated or the accident occurred as a result of the intentional actions of the guilty person.
- The damage was caused by force majeure.
- The accident caused environmental pollution.
Cost of insurance under compulsory motor liability insurance and comprehensive insurance
If we talk about compulsory motor liability insurance, then there is no single tariff on the territory of Russia. The cost of the policy is calculated in each specific case using a formula that includes the base rate and adjustment factors.
In general, the price of MTPL insurance depends on a number of factors:
- car categories;
- the power of its engine;
- availability of a trailer;
- personal characteristics of the driver, including his age, driving experience, place of registration, etc.;
- the number of accidents in the past, the total amount of payments received under compulsory motor liability insurance;
- the number of drivers who will drive the car;
- the period for which the policy is issued.
CASCO cost largely depends on the price of the insured car.
In addition, it is influenced by the volume of risks that are covered by insurance. On average, a policy costs from 7% to 20% from the price of the car. Due to the relatively high cost, some companies offer simplified options that provide protection only against certain risks. Also, in some cases, insurance can be paid in installments.
Criteria, vehicle parameters and other conditions
OSAGO policy price:
- Japanese class “C” car – 3000-5000 rubles.
- Domestic low-power car, manufactured in 2005 – 2500-6550 rubles.
- An average car in an inexpensive pricing policy, produced in 2010-2015. – 1500-8000 rubles.
- Expensive foreign car, produced in 2016 – 3000-9500 rubles.
CASCO policy cost:
- Toyota Corolla, 2014 – 30,000 – 100,000 rubles.
- Domestic low-power car, produced in 2005 – 25,000 – 150,000 rubles.
- The average car in an inexpensive pricing policy, model years 2010-2015 - 25,000 - 200,000 rubles.
- Expensive foreign car, produced in 2016 – 40,000, 55,000, 70,000 – 200,000, 350,000, 400,000 rubles.
Payments for an insured event under MTPL
Maximum Possible Compensation according to the MTPL policy is 400 thousand rubles, unlike the previous 160 thousand. A one-time compensation for this type cannot exceed this amount.
However, the number of compensations under compulsory motor liability insurance is not limited by the contract. At the same time, the limit wear of parts must be at least 50%, previously there was a parameter of 80%. Now, for parts that significantly affect safety, compensation is calculated without taking into account the wear rate.
Payments for an insured event under CASCO
Under the CASCO agreement, the amount of payments is limited to the maximum specified in the agreement. This means that if a document is drawn up, for example, to the detriment of 1 million rubles, and the cost of restoration after the first accident took 300 thousand rubles, then the remaining insured events, if they occur, can only be counted on from the remaining 700 thousand rubles.
Differences and terms of payments under CASCO and OSAGO
CASCO is a voluntary type of insurance that covers risks such as car theft, theft, intentional damage, causing other types of damage, etc. Also, a car owner has the right to insure his liability to other persons.
If the integrity of the machine has been compromised, then its owner has the right to receive compensation. Questions about the amount and procedure for payment of compensation are resolved in accordance with the terms of the agreement concluded between the parties. In some cases, such as theft, the insurance company is required to pay the full value of the stolen car.
While OSAGO insures the driver’s civil liability and upon the occurrence of an insured event, it provides for the payment of compensation not to the motorist, but to the victims. According to current legislation, one month is allotted for consideration of the application of the interested party and payment of compensation.
The eternal question: is compulsory motor liability insurance necessary, is there a comprehensive insurance policy?
First of all, it should be noted that MTPL and CASCO are far from being equivalent concepts. If the first type of insurance is intended for the driver, the second protects his vehicle.
In other words, compulsory motor liability insurance provides for compensation for damage caused by the injured insured person. While CASCO guarantees the car owner payment of compensation for damage that was received by his vehicle. This insurance covers significantly more risks, but the cost of the policy is not cheap.
Thus, drivers who have taken out a CASCO and OSAGO policy in a way they enjoy double insurance. Indeed, in fact, the only risk that is not covered by CASCO is damage to the health of other participants in the accident. Whereas in all other cases, drivers prefer voluntary insurance as more profitable.
But avoid purchasing a compulsory motor liability insurance policy It won’t work, because this type of insurance is considered mandatory for all car owners. Driving a car without this insurance is considered an administrative offense and entails a fine. Therefore, regardless of the wishes of motorists, they are forced to purchase compulsory motor insurance, even if they have CASCO insurance.
Driving a car is associated with the risk of participating in an accident and possible property damage to both your own car and third parties. To protect the property interests of car owners, there are two types of vehicle insurance. What is the difference between CASCO and MTPL, how do they work, what is their price, how best to arrange insurance, what is the procedure for making payments in the event of an insured event, we will consider in this article.
What is comprehensive insurance and compulsory motor liability insurance?
The comprehensive insurance policy (derived from the European (Italian, Spanish, Dutch) casko - “hull”) belongs to the category of voluntary types of insurance, and, subject to its registration, guarantees the financial protection of the vehicle in various situations - in case of an accident while the car is moving, in case of damage in the parking lot, or in case of theft, regardless of the degree of guilt of the injured car owner. Casco is regulated by the rules approved by the insurer, as well as by the Law of the Russian Federation No. 4015-1 of November 27, 1992 “On the organization of insurance business in the Russian Federation.”
OSAGO (stands for compulsory motor third-party liability insurance), or in simple terms, “motor civil liability”, refers to a compulsory type of insurance, without which driving a car is prohibited by law. “Automobile insurance” is regulated by Federal Law No. 40-FZ of April 25, 2002 “On compulsory insurance of civil liability of vehicle owners.” Without compulsory insurance, a citizen driving a car will receive a fine in accordance with the provisions of the Code of Administrative Offenses of the Russian Federation.
Features and differences of policies
The basis of comprehensive insurance is its complete voluntary nature. The difference between comprehensive insurance and compulsory motor liability insurance is that it protects the vehicle, and does not insure the liability of the car owner driving the vehicle on the roads. Due to its optional nature, the driver does not need to constantly carry the insurance policy with him while driving the car. Insurance guarantees the protection of the property interests of the policyholder in the following cases:
- Theft;
- Damage received in an accident;
- Damage resulting from natural disasters, fires, or malicious intent of a third party;
- Complete loss or destruction of the vehicle.
“Auto Citizen” is insurance that the car owner must take out. MTPL does not guarantee financial compensation to the victim in the absence of a second participant in the accident, in the event of damage during parking, falling trees, or in the event that the insured is the culprit of the accident. The OSAGO program only guarantees payment to the injured party in the event of an accident. Compensation is carried out in the form of repairs to the vehicle if the damage was caused only to it.
If the holder of a compulsory insurance policy turns out to be the culprit of the accident, then he will have to repair and restore his car himself, since the insurer will compensate the damage to the injured party. If the culprit of the accident fled the scene, the victim’s insurance company will pay him the amount of compensation only by court decision.
Comparison of programs and costs
MTPL and comprehensive insurance programs include different risks that need to be clarified with the insurance company, terms of registration, procedure for calculating the cost, validity periods of insurance contracts, different amounts of liability limits of the insurance company, different requirements for the age of the car and its price. The table below will indicate the difference between auto insurance programs and clarify which policy is more expensive
Table - Differences between motor insurance programs CASCO and OSAGO
| Comparison options |
OSAGO |
Casco |
|---|---|---|
| What is insured? |
Driver's responsibility |
Vehicle |
| Mandatory insurance |
Yes |
No |
| Average cost, rub. |
From 6 to 15 thousand |
From 40 to 200 thousand |
| Maximum amount of insurance coverage, rub. |
Up to 400 thousand - damage caused to property; up to 500 thousand - damage caused to life and health |
From 300 thousand to 1.8 million |
| Insurance cases |
Causing harm to the health and property of others |
Total loss of the car, theft, damage, other stipulated by the contract |
| Cases of refusal of compensation |
|
According to the terms of the comprehensive insurance agreement |
| Payout Features |
Compensation in kind in the form of car repairs, payment of monetary compensation taking into account wear and tear of spare parts |
Compensation including wear and tear for used cars and without taking into account wear and tear for new cars |
| Insurance company bankruptcy |
Payments to the car owner are made by the Russian Union of Auto Insurers |
Payments are collected in court or at the request of creditors during the liquidation of the insurer |
| Car age |
No requirements |
Depending on the chosen insurance company and comprehensive insurance program. Rosgosstrakh insures cars no older than 12 years |
| Legislative regulation |
Law of the Russian Federation No. 4015-1 of November 27, 1992 “On the organization of insurance business in the Russian Federation”, Federal Law No. 40-FZ of April 25, 2002 “On compulsory motor liability insurance” |
Law of the Russian Federation No. 4015-1 of November 27, 1992 “On the organization of insurance business in the Russian Federation”, rules of comprehensive insurance |
Since comprehensive insurance is voluntary insurance, which is not regulated by law, insurance companies set their own rates and assign calculation coefficients that affect the cost of the policy. The final cost of comprehensive insurance should be considered depending on the region in which the car is registered, the experience of the driver and his age, the type of vehicle and its power, the validity period of the comprehensive insurance agreement, the list of insured risks that make voluntary insurance more expensive than mandatory.
Compulsory motor liability insurance is fully regulated by federal law; insurers do not have the right to fully determine the cost themselves; they can set the price for the policy only within the established tariff corridor, which is cheaper from an economic point of view. Calculation of the cost of an MTPL policy when issuing it is carried out using the power factor, territorial coefficient, KBM, taking into account data on the age and length of service of the driver, and the period of use of the vehicle.
Is compulsory motor liability insurance necessary if you have comprehensive insurance?
A car owner may wonder: is compulsory motor liability insurance necessary if there is a comprehensive insurance policy, since the car is already insured? The answer is yes! The MTPL policy guarantees the right to compensation for damage to the injured party upon the occurrence of an insured event, but not to one’s own funds, and the mandatory availability of MTPL is determined by the requirements of Russian legislation, the federal law “On MTPL”.
Compulsory car insurance gives its owner the right to use his vehicle without the risk of being fined. According to the Code of Administrative Offences, the fine for the absence of a compulsory motor liability insurance policy ranges from 500 to 800 rubles. Russian legislation does not provide for a fine for the absence of a comprehensive insurance policy, since this insurance is voluntary.
Casco or OSAGO: which is better in case of an accident?
In the event of a car accident, each party must choose which policy to use to receive compensation. If you have compulsory motor liability insurance, it is most beneficial for the person at fault to also have comprehensive insurance, since without voluntary insurance he will not be able to receive compensation from the insurance company.
If the owner of a car injured in an accident has a compulsory motor liability insurance policy, compensation must be paid by the insurer, which, under a recourse claim, will recover the amount of damage from the insurance company of the culprit or from himself, if there is no valid “automobile insurance policy”. Thus, what to choose in case of an accident, what type of car insurance to use, depends entirely on whether the citizen is the victim or the culprit of the incident.
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 (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 amount. 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. This will help you.
