The difference between comprehensive insurance and compulsory insurance. What is compulsory motor insurance and motor insurance in simple terms? What is compulsory insurance and motor insurance for a car?
Some drivers have little idea of how compulsory and voluntary insurance policies – MTPL and CASCO – differ significantly from each other.
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It is especially difficult to imagine the differences in the cost of rhinestone products, terms and conditions of their use. And this kind of ignorance can lead to significant expenses for the family budget.
Therefore, it is better to find out in advance about the difference that exists in tariffs and insurance payments for these two programs.
Concept
Every year, the state obliges all Russian citizens and foreigners temporarily staying on the territory of the Russian Federation to purchase MTPL insurance.
What does the owner of this document insure? First of all, it should be noted that insurance under such a policy is not provided for the vehicle itself, but for the driver’s liability.
In other words, if we have compulsory motor liability insurance, we insure civil liability. It is the high percentage of accidents on the road, which persists from year to year in certain regions of the country, that forces
The government is introducing this necessity into practice. After all, a car or a truck, no matter what category the vehicle belongs to, is rightfully recognized as a means of transportation of a high danger class.
Such a policy operates in the event of an accident as follows - damage caused to the property and health of the injured party will be compensated by the insurer of the culprit.
At the same time, the culprit is not entitled to anything - no insurance payments. Except when he himself was wounded.
Then he is simply compensated for health damage caused as a result of a road accident, but not by his insurer, but from the funds of RSA - the Russian Union of Auto Insurers.
And then, this is only possible if the driver-culprit has injuries and injuries, which doctors will classify as injuries of moderate or severe severity.
At the same time, other factors may also influence the reduction in the amount of such payment from the RSA, such as, for example, the driver being drunk at the time of the collision.
In the case of a CASCO policy, you should immediately indicate that the car is insured - damage that is caused directly to the property. This is because CASCO is classified as property insurance.
But if you would like to insure the driver himself, then you will have to take out DSAGO (voluntary insurance, which is also considered an additional type of service) in case of risks to the life and health of the driver.
Therefore, if the driver has a DSAGO policy in his hands, it does not matter whether he is at fault for the accident or not, he will be entitled to payments that compensate for the damage caused to his health.
With CASCO insurance, the insurance options are as follows:
- theft (theft of a car);
- damage to the car as a result of an accident, collision, vandalism by unauthorized persons, natural disasters and other reasons;
- total loss of the car (not all companies can agree to this insurance event, however, often in the practice of some insurers there is also this condition for covering property damage).
The procedure for payments and setting tariffs for the cost of voluntary insurance policies is not regulated by legislative norms specifically issued, as it works in the case of compulsory insurance.
All standards for the work of insurers in the field of CASCO programs are regulated by certain laws of the Civil Code, as well as articles of the law and some additional regulatory acts similar to government regulations.
The most basic differences between both types of insurance - compulsory and voluntary, first of all, lie in the question of what is more expensive: CASCO or OSAGO.
Therefore, answering this question, we can safely note right away that CASCO policies have always been more expensive than MTPL insurance products. This is due to both the object of insurance and the pricing.
In the case of a compulsory type of insurance, it is determined by the Central Russian Bank, and in the case of CASCO - by insurers, the Union of Auto Insurers and some regulated regulations of the RSA.
Advantages and disadvantages
| OSAGO - advantages | OSAGO - disadvantages | CASCO benefits | CASCO - disadvantages |
| The culprit driver is protected in case of an insurance precedent - he will not have to pay a large amount at a time from his own pocket. | Mandatory insurance | Voluntary insurance | The system of discounts for accident-free operation is present only at the request of the insurance company. |
| If you are a victim, the damages after the accident will be reimbursed to you by the insurance company of the culprit. | Availability of recourse if the driver violated the terms of the contract | Regardless of the determination of the at-fault party, the holder of such a policy will receive compensation for damage caused to his car. | The presence of subrogation, which comes into force when the policyholder appears and at the same time violates part of the obligations under the contract. |
| There is a system of discounts - Bonus-Malus - for each year of driving without accidents. | Damage to the health of a driver who is determined to be responsible for an accident is never compensated. | Sometimes, if this is stated in the insurance contract. Compensation under this policy is also provided in cases of harm to the driver’s health. | Not all insurers enter into contracts with a health compensation clause. DSAGO required. |
| Affordable policy price. | Damage to the property of the person responsible for the accident is never compensated. | Beneficial for drivers with extensive experience. | The cost of the policy is quite high. |
A recourse (recourse claim) under compulsory motor liability insurance can occur, for example, when the insured driver was drunk at the wheel. In this case, part of the insurance will be paid by the driver, but directly to the insurer’s account.
In other words, the insurer fulfills its obligations under the contract and pays the entire amount to the injured party.
However, at the same time, through the court, he puts into effect a recourse mechanism - he imposes on the culprit of the accident, his client, the return of part of the insurance amount to his bank account.
Thus, drivers who violate not only traffic rules, but also the terms of the insurance contract, risk becoming debtors to their insurers after the occurrence of an insured event under compulsory insurance. For CASCO insurance, the same method is used, which is called subrogation.
What to choose CASCO or OSAGO
When a driver purchases a car, he should immediately think about how much he should spend on purchasing an insurance policy. Moreover, there is no question of choosing – buy OSAGO or CASCO.
OSAGO is purchased in any case, because this type of insurance is mandatory in Russia. But whether to buy CASCO insurance or not depends on the driver’s driving experience.
Beginners run the risk of frequently getting into an accident, and this will mean that the cost of such a policy will be more expensive. But if you think about what is cheaper than CASCO or OSAGO, then the answer will always be clear - OSAGO is cheaper.
In order to be convinced of this, you just need to study the criteria for prices, insurance payments and expenses spent on issuing a policy.
By price
The difference in prices exists for the reason that the tariffs for compulsory insurance are determined today by the Central Russian Bank.
Despite the fact that in 2020 it is planned to “let go” this type of insurance into free floating and make it voluntary, nevertheless, this is still a matter for the future.
In the meantime, the cost of MTPL policies is determined by special calculations and tariff corridors at the request of the Central Bank of Russia.
And CASCO tariffs have base rates determined by the Union of Insurers. Therefore, they can be quite justifiably higher than state tariffs.
When calculating CASCO insurance, such complex circumstances as the theft of a car are always taken into account, the cost of which will have to be covered by the insurer, and, as a rule, expensive car models are stolen.
In addition to tariff rates from the Central Bank for the pricing policy of MTPL policies, there are also fixed coefficients that are taken into account by insurers when making calculations.
So, the coefficients can be:
- territorial;
- determining the power of a car brand;
- coming from the experience of a warrior;
- belonging to one or another category of transport.
But in fairness, it is worth noting that when selling policies or extending their validity period under the MTPL program, mandatory discounts may always apply.
Such discounts are awarded for each year of accident-free driving experience. This discount is also referred to as a coefficient and is called “Bonus-Malus” or abbreviated as KBM.
Therefore, a careful driver will always be sold an MTPL policy at a significantly reduced price than someone who gets into an accident every year:
By terms and amounts of payments
Payments under compulsory motor liability insurance are regulated by a separate law, specifically issued for this type of insurance - the law, which was last amended on November 28, 2015.
The amounts of payments under voluntary insurance are most often made when covering property damage, rather than compensation for harm to the health of the injured party:
When determining the amount of payments under a CASCO policy, there is one important rule - the amount of payment should not be more than the cost of the vehicle.
The period for making payments under the MTPL policy should not exceed 30 days, in the case of a CASCO policy - from 15 to 30 days. Why from 15 days?
Because a two-week period is allotted for a criminal case opened on the basis of car theft, if such an insured event occurs.
In a situation where the insurer delays in transferring funds to the client’s account, then he either must provide a reasonable written explanation, or he will have to answer for the claims.
Because the client will have the right to send a demand first to the director of the company. And then, a lawsuit with a request to eliminate the violation on the part of the insurer in the denied right to receive the client’s money on time.
According to the complexity of design
The registration process itself in both cases also refers to one of the main differences between OSAGO and CASCO.
To obtain a compulsory type of insurance policy, it is necessary to draw up a liability insurance contract, not the driver’s property. And in the case of purchasing a voluntary insurance policy, the protection is aimed at the driver’s property itself - the vehicle of which he is the owner.
Therefore, both the package of documents and the procedure itself may differ. Thus, with compulsory insurance, more attention is paid to the driver’s driving experience - the higher it is, the lower the risk of getting into an accident is expected.
And for voluntary property insurance, attention is paid to the condition of the car. Therefore, it needs to be assessed with the help of experts, because faulty machine systems are already a prerequisite for the risk of an accident.
What documents are needed
For both one type of car insurance and another, it is necessary to prepare certain papers in order to present them to the insurer along with an application for the purchase of a policy or both policies at once.
If the driver wants to take out both insurance options at once, this will give him an advantage - compensation for damage under OSAGO and CASCO simultaneously if an insured event occurs under both insurance contracts.
Therefore, in any case, the package of papers that needs to be collected in advance is almost the same and its list includes the following documents:
- civil passport of the Russian Federation (or passport of a citizen of another country who has the legal right to temporarily reside in Russia);
- legal documentation that confirms the right to ownership of the car (exchange agreement, purchase and sale agreement, gift agreement, certificate of inheritance rights);
- PTS – car passports;
- driver's license.
To purchase two policies, simply copies of documents are multiplied according to the number of contracts concluded with the insurer. This entire package of documents must be attached to the application, which is drawn up in writing for each policy separately.
Although many legal experts argue that an oral statement is sufficient to purchase a CASCO policy and sign its contract.
Also, when applying for a voluntary type of insurance, you may be asked to present a compulsory insurance policy.
After a company employee completes the entire procedure for issuing a particular policy, he gives the driver the following set of documents:
- The policy is original.
- Insurance contract (required for both compulsory and voluntary types of insurance) – a copy.
- Booklet with insurance rules.
- A receipt or other payment document that would confirm the fact that the insurance premium has been paid.
This list of papers that are issued to the driver, the policyholder, is standard for any insurance program.
Therefore, if you were not given something, compare it with this list and calmly demand that the insurance company specialist issue the appropriate document.
If you have CASCO insurance, do you need MTPL and vice versa?
If we consider that CASCO is a strictly voluntary type of insurance, then it is worth asking whether having it alone is enough to legally drive a car in the country.
(Road Rules) reveals the essence of every driver carrying a compulsory motor liability insurance policy.
Each traffic police officer who stops a driver has the right to demand to see for verification not only his driver’s license, but also the validity period of the policy, as well as whether the driver is included in the policy form.
Therefore, even despite the fact that CASCO has a wider coverage area for risky cases, drivers are nevertheless required by law and the Road Traffic Rules in Russia to insure motor third-party liability.
Law No. 40-FZ dated April 25, 2002, amended on November 28, 2015, determines the mandatory liability of the driver to be insured under compulsory motor liability insurance for reasons that are defined by law as measures to protect the injured party in cases of accidents on the roads.
Thus, this law regulates the norm - the obligation of every driver, without exception, to insure his risk of civil liability.
Because such risks can occur completely unexpectedly, sometimes even with sufficient attentiveness of drivers and the absence of any violations on their part.
Even basic ice can cause an accident on the highway. Therefore, in order to cover all the expenses that may be associated not only with the repair of the victim’s car, but also with his treatment in the hospital, CASCO alone will not be enough.
If we summarize the comparison of two policies - CASCO and OSAGO, we can draw certain standard conclusions.
The first type of insurance is voluntary and the driver may not enter into such an agreement - this will not be considered a violation of legal norms.
You know the terms MTPL and CASCO. But do you know what is meant by these terms? What is the difference between OSAGO and CASCO – we’ll talk about it today.
Many motorists, even using these insurance products, do not fully understand their purpose. Meanwhile, the differences between them are significant. Let's try to figure it out. The hero of our article today, Styopa, a young car enthusiast who has just bought his first car, will help us with this.
All car enthusiasts know that they need to buy an insurance policy every year. So Styopa came to the insurance company. He knows that there are two options: OSAGO and CASCO. What it is? The first of them is an abbreviation that reads in full Mandatory Automobile Liability Insurance (abbreviated as “automobile”).
The second name has no decoding. It is more correct to write “casco”, from the Spanish casco - helmet or the Dutch casco - body. It is written in capital letters for similarity with OSAGO. Only insured vehicle, without people or cargo moving on it.
Our goal is to study the features of these insurance products in order to make the right and informed choice.
Features of OSAGO and Casco
Casco was expensive, and they said about compulsory motor insurance that you couldn’t go on the road without it. That's why Styopa bought only the mandatory type. But one day he hit someone else's car. All necessary actions were done correctly. The insurer fulfilled its obligations - it repaired the car damaged by Stepa. But, to his great disappointment, he was not paid anything.
Is this a violation of Styopa's rights? No. After all OSAGO is liability insurance which occurs when damage is caused to the property and/or health of others in an accident. Only the victim receives compensation. Yes, Styopa was not given funds for car repairs. But he did not bear the costs of restoring someone else's car. Precisely because his liability to others was insured.
What would have happened if Styopa had also taken out CASCO insurance? Then his car would also be restored with funds from the insurance company. Casco is voluntary insurance against any damage to hardware, regardless of the driver’s role in the accident. Insurance rules are determined by each insurance company for itself.
There is also additional motor liability insurance(DSAGO, DoSAGO, DGO). But more on that later.
OSAGO and CASCO: what do they have in common?
Firstly, these are insurance products related to motor vehicles. Secondly, payments will be denied under both insurances if the participant in the accident was drunk at the time of the accident.
Insurance payments
If no more than two vehicles collided, both drivers have compulsory motor insurance, and there are no injuries, then the victim must contact the insurer with whom he entered into an agreement. If these conditions are not met, the culprit is sent to the Investigative Committee.
According to Federal Law No. 40-FZ maximum payment for personal injury - 500 thousand rubles. In case of damage to property - maximum 400 thousand rubles, and to each of the victims. The payment amount is calculated according to the Unified Methodology approved by the Central Bank.
Note. If more than one is guilty, then the harm caused to everyone is compensated in proportion to the degree of guilt. If the case does not go to court, then it is usually accepted that both are equally to blame, that is, everyone is paid 50% of the damage received.
Important. If a traffic accident is registered according to the European Protocol, the maximum payment is 50 thousand rubles.
The following year, Styopa bought an additional policy, but again became the culprit of an accident, this time a serious one, and he even crashed into a brand new business class sedan. But Stepino’s car was repaired, because the Casco payment does not depend on the role of the policyholder in the accident. Its size is limited by the cost of the vehicle at the time of concluding the contract. Sometimes evacuation from the scene of an accident is covered, and others (depending on the company).
But a couple of months later, our hero received a notice from the court that 115 thousand rubles were being recovered from him in favor of the victim. Styopa According to his car insurance, he no longer has CASCO insurance! Why do they demand anything else from him?
It turned out that the victim spent 515 thousand rubles to repair the car, which exceeded the maximum amount that the insurance company is obliged to pay. And the owner of the damaged car filed a lawsuit so that Styopa would pay up to the full cost of repairs, for which he had legal grounds. Accordingly, the trial was won.
CASCO protects the car only of the person who purchased this policy. In such cases it is necessary DOSAGO. It allows you to add up to three million rubles to payments under compulsory motor liability insurance in order to fully reimburse the costs of restoring the victim’s car.
Cost of OSAGO
Tariffs for calculating the price of the policy are established by the Central Bank of the Russian Federation. The calculation takes into account the region, power, the number of people who have the right to drive the vehicle, how old they are, their driving experience, as well as accidents, if any.
The contract is concluded for a year or for a period from three to nine months. Moreover, the cost, for example, for three months – 50% from annual, to nine – 90%. But the insurance premium for the year permanent. The cost of insurance for 3 months will be 50% of the annual one, but for the remaining 9 months you will also need to pay an additional 50%.
CASCO cost
Insurance companies set their own prices for this type of insurance. The price depends primarily on the car being insured, its value, as well as the region, driver information, and validity period. You can usually choose full or partial services. For example, only from damage or, both from damage and from theft.
The price of the partial and full options is not much different, so it is better to choose the second one. The policyholder may be denied insurance for a car that is too old or, in the insurer’s opinion, insufficiently protected by security systems. This type of insurance is always more expensive than mandatory insurance.
Why do you need Casco if you have compulsory motor insurance?
So that it doesn’t work out like in the first case with Styopa. Under compulsory motor liability insurance, the insurance company compensates the victim for damages instead of the culprit of the accident. But the person responsible for the accident will have to restore his car himself.
Under Casco, the insured car will be repaired in the event of any damage or even theft, except in cases provided for in the contract.
Why MTPL if Casco will cover everything?
The obligation to purchase an MTPL policy is established by law at the federal level. You can't drive without it. Casco only covers damage caused to the policy holder's car, and compulsory insurance is required to compensate for damage to the victim.
In what cases will the insurance company not pay?
There will be no payments to the culprit under auto insurance. But the victim will also be denied compensation in the following cases:
- hiding the culprit from the scene of the incident;
- the culprit does not have a policy compulsory insurance;
- if the culprit was in a state intoxication;
- the insurance company was incorrectly notified when registering according to the Europrotocol;
- car was not provided in time for examination.
Casco will be denied:
- in case of malicious violation of traffic rules;
- if the policyholder was in a state of alcohol or drugs intoxication;
- the driver did not have a license for management this car;
- Vehicle seized by decision ships.
There are other reasons, but the above will definitely lead to refusal.
If the insurance company no longer exists
In the event of such force majeure, the difference between types of insurance again appears. If a compulsory motor liability insurance agreement has been concluded, it is enough to contact the Russian Union of Automobile Insurers (RUA), which is responsible for civil liability obligations, or resolve this issue in court.
If Casco insurance is only through the court, because RSA is not responsible for voluntary insurance contracts.
Comparison of CASCO and OSAGO – table
| Parameter | OSAGO | CASCO |
| Object of insurance | Civil responsibility | Vehicle |
| Type | Mandatory | Voluntary |
| Who is compensated | Victim of an accident | To the owner of the insured vehicle, regardless of guilt in the accident |
| What is regulated | Law No. 40-FZ and other laws | Rules of the insurance company that do not contradict the legislation of the Russian Federation |
| Policy price (B-segment car) | Tariffs are set by the Central Bank of the Russian Federation From 3 to 19 thousand rubles | Tariffs are set by the insurance company From 30 to 200 thousand rubles |
| Maximum amount of insurance payment | 400,000 – for property damage, 500,000 – for personal injury | The cost of the insured vehicle at the time of conclusion of the contract |
| Car age | No limits | No more than 7-10 years |
| When insurance compensation is not paid |
|
|
| Losses in the absence of a policy |
|
|
| Compensation in case of liquidation of the insurance company | RSA or court | Only court |
Which policy to choose
OSAGO – mandatory for all car owners, and there is no choice here. But it will not help restore the car to the person responsible for the accident.
Want to protect your car to the maximum- you have to fork out for Casco. This is especially necessary if the car is new and/or expensive. Voluntary insurance is usually included in the terms of car loans.
Conclusion
The article has come to an end. I hope now you understand well the difference between MTPL and CASCO, and what the essence of these types of insurance is.
The video below clearly explains the essence of insurance.
Important! Some of the information in the video is outdated, namely:
- Amount of insurance compensation now up to 400,000 for property damage, for each of the victims, and up to 500,000 if there are victims.
- The insurance policy is issued not only for 3, 6, 9, but also for 4, 5, 7, 8 months.
- The price of the policy depends on the region, since the calculation formula contains a territorial coefficient.
- Casco possible arrange for aged cars up to ten years, however, not everywhere.
That's all. Subscribe, discuss, share on social networks. Good luck!
CASCO is motor vehicle insurance against any form of damage, even theft. At the same time, in the event of a traffic accident (accident), even if the driver who has taken out a CASCO policy is found to be at fault, he will be able to cover all the costs of restoring and repairing his own car using this insurance service.
CASCO is a voluntary type of insurance.
In turn, compulsory motor liability insurance is mandatory for drivers. In this case, for example, if an accident occurs on the road, the guilty driver is not entitled to any payment under MTPL, but the other injured motorist will be reimbursed by MTPL for all costs of repairing the car. In this case, the culprit will have to pay for the repair of his own car himself.
OSAGO covers damage to third parties.
Differences between OSAGO and CASCO
Features of insurance between CASCO and MTPL is a list of different insurance events. The CASCO policy insures its owner against the following cases: fire, theft, damage caused by third parties, any accident, and the effects of various natural phenomena, for example, falling icicles, flood, hail. In any of the above insurance cases, the payment will be reimbursed in the full amount specified in the insurance contract. At the same time, it is possible to include some other services in the CASCO insurance contract, for example: evacuation of a car from the scene of an accident, assistance in correctly drawing up documents in the event of an accident on the road, departure of an emergency inspector and much more.
In turn, MTPL insurance protects the property interests of only third parties. This is necessary in cases of damage caused by the fault of the car owner in some traffic situation of one party, in order to compensate for the damage to the second party. At the same time, there are restrictions on a certain limit of payments, in accordance with the amount - how much is indicated in the policy.
In connection with the above characteristics of car insurance, we can safely say that CASCO is more effective, but compulsory MTPL is mandatory.
Experienced drivers remember how their lives changed after the adoption of an interesting federal law in 2003. The government then obliged motorists to purchase insurance for their cars.
And for the eleventh year now, drivers have been confused by the mass of offers from insurance companies and are tormented by doubts: should they buy OSAGO or CASCO? Let’s figure out how MTPL differs from CASCO and clarify the features of both types of insurance.
What do these words mean?
The terms are actively used throughout the country, but few know the exact meaning. Both words mean insurance, but insurance is different.
What is OSAGO
The meaning becomes clear after decoding: compulsory motor liability insurance. Let's highlight the most important points:
- Mandatory - you cannot travel throughout the country without compulsory motor liability insurance.
- Insurance – you purchase a policy in advance. This is your insurance in case of troubles, and there should be no interruptions in it. When one policy expires (usually one year), you sign a new insurance agreement with the company in advance. If you bought a car, you buy insurance within 10 days (the law insists on this).
- Liability insurance – that is, you are not paying to have enough money to repair your own car in the event of an accident. You, as a driver, are insured against the financial consequences of possible minor and major accidents for which you will be the culprit. An insurance company will help you pay for the repair of someone else’s car and compensate for the damage caused to the health of the victims.
- Motor vehicle liability – the MTPL policy is valid only for motor vehicles.
What is CASCO
This voluntary insurance of transport against possible damage. Let's highlight the main points:
- Voluntary insurance - the law does not force all motorists to receive it. If you want, you buy it; if you don’t want it, you pass by.
- You can insure not only automobiles, but also other transport: water, rail, air.
- Damage insurance - in this case, you insure not liability for your actions, but compensation for damage that may be caused to your car.
- The damage includes many unpleasant situations:
- damage in an accident;
- arson;
- hijacking;
- consequences of natural disasters;
- theft;
- other damage to the car.
How much do CASCO and OSAGO cost?
The price of insurance varies significantly. The cost of compulsory motor liability insurance is determined by the state, insurance companies cannot change legally established rates.
What does the price of OSAGO depend on?
Before applying for a policy, a representative of the insurance company will run you through their database and study all the documents: car registration certificate, driver’s license, your passport. The final cost will be based on the following factors:
- territories of residence – each region has its own tariffs;
- your age and driving experience;
- type of insured vehicle.
How does the CASCO price work out?
In this case, there are no strict standards, so Each company has its own prices. Basic indicators:
- make, age of the car;
- your driving experience - especially affected by the absence of accidents due to your fault;
- inclusion of additional services:
- assistance in drawing up documents in case of an accident;
- car evacuation;
- calling an emergency commissioner and others to the scene of the incident.
What insurance amounts are provided?
In compulsory motor liability insurance, these amounts are prescribed in the law: for causing harm to health and life - 160 thousand, to the property of one victim - 120 thousand.
In CASCO insurance, this amount is equal to the value of your car on the day on which you entered into an insurance contract.
Features of the CASCO policy
CASCO insurance will follow the scenario you choose. The contract is drawn up for you, it is a flexible tool.
Insurance form
There are two options:
- Full form.
- Partial form.
In the first case the contract provides for all types of risk, from possible fire to theft. For insurance according to the second option The types of risks that you wish are prescribed in the policy. If the car spends the night in the yard, include clauses about possible theft and theft, park the car at the entrance - do not forget about natural disasters (icicles, snow falling from the roof). Partial CASCO is much cheaper than full CASCO.
Franchise
This is another means of reducing the cost of insurance. A deductible does not mean paying the full cost of insurance, but only part of it. For example, a deductible of 10 thousand means that you will pay for the repair of minor damage to the car, which will cost less than 10 thousand. If the car was badly damaged and its restoration costs more than this amount, the insurance company will pay for the repairs.
The main differences between CASCO and OSAGO
- Mandatory: OSAGO – required by law, CASCO – desirable.
- Insurance price: OSAGO is cheaper than CASCO.
- Object of insurance: CASCO insures your car, OSAGO insures your liability.
- Amount of payments: CASCO will pay for everything, there is no limit, OSAGO - only the amount that the state legally allows.
Video: Subtleties of insurance in case of an accident
Can policies replace each other?
These are different types of insurance, and there is no question of replacement. Driving without compulsory motor liability insurance is a violation of the law; for the absence of a policy, an administrative fine is imposed. Now it is 500 rubles, but soon the amount will be increased.
Is compulsory motor liability insurance necessary for CASCO insurance?
There is only one answer - definitely. OSAGO is primary insurance; you cannot do without it. But CASCO is a kind of addition to it. Therefore, it is impossible to answer the question of which is better: OSAGO or CASCO .
Both insurances are a guarantee of your financial well-being; it is up to you whether you buy only the mandatory one or buy both.
What to choose: OSAGO or CASCO plus OSAGO
To understand how much you need both insurances, answer a number of questions:
- how often do you drive;
- Do you live in a small village or a metropolis;
- how densely congested the streets and highways you drive are;
- how much experience do you have as a driver?
- how old is your car;
- Do strangers have access to your car?
If the chances of getting into an accident are high, you are moving in heavy traffic, or the car is expensive, it is better to spend money on both policies.
When do you need CASCO insurance?
cases, when is it not worth saving on this policy?, two:
- Buying a car on credit.
- Purchasing a new and very expensive car.
We can say with complete confidence that compulsory liability insurance will not be abolished in Russia. This means that car owners will continue to change their MTPL policy every year. Now you know the difference between insurance, decide what is more important: saving money on CASCO or confidence in financial well-being in the event of an accident.
We drive our car calmly, knowing that all our documents are in order, we are insured annually in case of an accident and we constantly hear these three words (except perhaps DSAGO a little less often), but in fact, not everyone knows what the difference is between compulsory motor liability insurance, DSAGO and CASCO, what is the difference between their coverage amounts, insurance objects and what to choose in certain cases. Let's find out all this and dot the i's in this issue of insurance!
What is OSAGO?
So, if we look at the insurance policy, which we are obliged to carry with us and hand over to a police officer upon request (unless we have issued an electronic OSAGO policy), then we can read on this single A4 piece of paper and understand that this is a policy OSAGO is a compulsory motor third party liability insurance policy, and it is this insurance that the state obliges us to purchase annually.
And here we will clarify the most important thing: under OSAGO we insure not the car or ourselves, as many people think, but our civil liability.
What does this mean? And the fact is that if, as a result of an accident, we are obliged to compensate for damage to someone else’s property (car and other) or harm to health, then the insurance company will do this for us, because we have insured our liability. Of course, the insurance company is responsible for our mistakes on the road within the limits of the insurance contract, which, in turn, is regulated by law - the Federal Law “On OSAGO”, and this law provides that the amount of coverage cannot exceed 400 thousand rubles (and in certain cases - 500 thousand), and also that in certain cases the insurance company is either relieved of the obligation to pay compensation to the victim for the harm caused by you, or the right of recourse (more on this below) in other cases. Such cases, for example, may be a state of alcoholic intoxication, failure to provide a car for damage assessment to an insurance company or to an independent appraiser at the request of the insurance company, and so on.
An important point - OSAGO does not cover damage caused to your car if you are the culprit of the accident. And OSAGO will not compensate you for damage if you are injured, but the culprit does not have an insurance policy or the culprit fled the scene of the accident. Under compulsory motor liability insurance, you will be paid in two cases:
- If you are a victim of an accident (by decision of the traffic police, and not in your opinion), and the culprit of the accident is known, and his auto liability is insured, then in certain cases you contact your insurance company or the insurance company of the culprit, which will compensate you for the damage caused harm (when you contact your insurance company, the insurance company at fault will also compensate you for the damage through your insurance company).
- If you are the culprit of the accident, then if you were sober, did not flee the scene of the accident, your insurance policy is not expired, and you did not refuse to provide the car for inspection, then your insurance company pays compensation to the victim. That is, for example, you caused damage worth 100 thousand, and issued a policy for 10 thousand. Your insurance company pays the victim 100 thousand, but has no right to demand anything from you.
There is also such a thing as a recourse claim - when the insurance company receives the right to bring a civil claim against the culprit of the accident for compensation for the losses it has suffered in order to pay compensation to the victim. Simply put, under certain conditions, when, for example, you fled the scene of an accident, did not provide a car for inspection in some cases and some others, the insurance company can legally recover from you the entire amount that it paid to the victim in the accident.
So, we have dealt with compulsory motor liability insurance. The turn of CASCO has come - how does this insurance differ from compulsory motor liability insurance, what are its advantages and disadvantages and what to choose?
What is CASCO?
We should start with the fact that the only thing common between MTPL and CASCO is the attitude towards cars and the fact that both of them are essentially insurance. But if under compulsory motor liability insurance the driver is insured, then under CASCO the property is directly insured - the car (its damage, total constructive loss or theft), and CASCO insurance coexists regardless of compulsory motor liability insurance, and the purchase of a CASCO policy is not mandatory by law - in other words, you can you can’t insure yourself under compulsory motor liability insurance, but not insure yourself under CASCO insurance, but on the contrary, it’s impossible (unless, of course, the car is driven on the roads of our country), because compulsory motor liability insurance is mandatory, you remember that, right?
Regardless of your culpability in an accident, CASCO insurance will allow you to compensate for damage to your car (but not to you (health), unless this is specifically stipulated in the CASCO insurance contract). However, if you are innocent in an accident, you can contact your insurance company under a CASCO policy, but the insurance company will also not suffer a loss - it will recover the amount paid to you from the insurance company responsible for the accident (but if you are the culprit, it will no longer be able to recover ), if the culprit is known.
Unlike compulsory motor liability insurance, the procedure for insurance, payments, and the cost of the policy in the case of CASCO are not regulated by a special law - only by the Civil Code, the Law "On the Protection of Consumer Rights", the Land Transport Insurance Rules and a number of other legal acts.
But the main difference between OSAGO and CASCO is, of course, the cost of purchasing the policy - CASCO insurance costs much more than under OSAGO, but it is also quite difficult to give average values here in the case of CASCO, since its calculation takes into account the theftability of the car model, its age, cost, cost of spare parts and repairs, statistical frequency of participation in accidents and many other factors. But the cost of an MTPL policy is calculated according to the coefficients established by law, has a very small range of changes in cost by the insurance companies themselves and depends on a much smaller number of factors, such as driving experience, age of the car, cost of the car, its power and a number of others. In addition, in the case of MTPL insurance, discounts are provided for accident-free driving (in the case of CASCO insurance, this is a voluntary initiative of the insurance company and is not a mandatory condition for it).
So, for example, if an MTPL policy for a new C-class car made in Japan can cost about 7,000-13,000 rubles, then a CASCO policy under the same conditions can reach prices from 50 to 140,000 rubles or more (this is the range of prices in a CASCO policy due to the fact that this price is set by the insurance company solely of its own free will).
For CASCO insurance, the insurance contract, as well as in the case of compulsory motor liability insurance, in most cases also stipulates that the insurer (insurance company) is exempt from payment if the driver was intoxicated at the time of the accident, the damage was caused by the intent of the insured (the one who purchased a CASCO policy in his name) and under a number of other conditions similar to OSAGO.
What is DSAGO (DOSAGO)?
But there is another incomprehensible “beast” in the field of auto insurance - DSAGO (or DOSAGO), which stands for voluntary motor liability insurance- simply put, this is an expansion of the amount of MTPL insurance coverage. The fact is that there are cases when, as a result of an accident, the culprit caused damage in the amount of more than 400 thousand rubles - for example, in the amount of 1 million rubles, and then the culprit’s insurance company under compulsory motor liability insurance pays the victim only 400 thousand rubles - the maximum that it is supposed to pay by law, but the rest (600 thousand rubles) - the culprit will have to pay out of his own pocket. And for this case, you need a DSAGO policy - it allows you to expand the amount of coverage in case of an insured event to much larger amounts than 400 thousand rubles (sometimes in some insurance companies the amount of coverage can reach 5 million rubles).
With all this, the cost of the DSAGO policy itself can be significantly lower than even the cost of the MTPL policy - for example, today you can find insurance companies where you can purchase DSAGO insurance for 2,000-5,000 rubles, and its coverage will be up to 1 million rubles. Agree that this is a “Must Have” item for any driver!
What is the difference between MTPL, CASCO and DSAGO insurance? Comparison table
| Insurance | OSAGO | DSAGO | CASCO |
|---|---|---|---|
| Object of insurance | Driver's liability in case of an accident | Driver's liability in case of an accident (additional expansion of the amount of coverage for compulsory motor liability insurance) | Automobile |
| Mandatory? | Yes | No | No |
| How much does it cost for the average common inexpensive car? (rubles) | 6 000 - 15 000 | 2 000 - 7 000 | 40 000 - 200 000 |
| Maximum amount of coverage based on the cost of the policy above, rubles | 400,000 (500,000 if there are casualties) | 400 000 - 3 000 000 | 300,000 - 1,800,000 (most often the cost of the car including depreciation) |
| Non-insurance conditions and rights of recourse |
|
According to the terms of the contract, which do not contradict the laws of the Russian Federation (as a rule, the driver is intoxicated, malicious intent). | According to the terms of the contract, which do not contradict the laws of the Russian Federation (most often, the driver is intoxicated, malicious intent). |
