Car insurance tightly entered the ordinary life of a simple driver. The state introduced compulsory motor third party liability insurance, without which driving onto public roads is impossible. OSAGO is well regulated by law, has tariffs and ratios set by the Central Bank of the Russian Federation, functions and volumes that such a policy can cover are also very clear. But the mandatory policy only covers the costs of damage caused to a third party, and absolutely does not protect the vehicle owner of the vehicle in case of severe damage during a traffic accident. In order to prevent unplanned expenses for damages caused to property, insurance companies offer a variety of types of hull insurance.
Varieties of CASCO policies.
What is hull
This type of insurance is not mandatory for drivers. The policy provides coverage for damage caused by an accident, it also applies to theft or hijacking of a car. That is, it practically covers damage caused to the property owner. CASCO does not include liability to third parties, damage to property that is inside the vehicle. CASCO is usually indicated as an abbreviation, but in fact this name translates as “helmet” from Spanish or “case” from Dutch.
The algorithm for the formation of basic tariffs and correction factors for the calculation of the hull insurance policy is established taking into account statistical data. Often such a policy provides a new car, which is expensive, in order to protect the owner from the cost of recovery after damage in an accident, from getting stones, hail, large branches in the car, the consequences of natural disasters, fire, arson, explosion, acts of vandalism, theft or abduction of the entire car and its individual parts.
What affects the value of the contract
When buying a CASCO policy, you should be aware of the factors that affect the base rate and take into account the correction factors. When concluding a contract, the insurer pays attention to:
- year of car manufacture;
- brand, manufacturer;
- driving experience of the owner;
- region of residence of the insured;
- car mileage;
- whether the car is in credit;
After receiving complete information about the car, the insurer on the basis of statistical data generates correction factors for calculating the full cost of the policy for each particular case of insurance. In this regard, the number of hijackings of a particular brand in a particular region, the cost of spare parts and maintenance, the size of the franchise, the presence of an anti-theft system, and insurance history are of great importance. You can calculate the cost of an insurance policy online on the website of any insurance company. Thus, you can choose the best policy for the cost.
Making the contract, the insurer will offer various types of CASCO insurance. The company will share the costs with the owner in the event of an insured event. There are few types of auto insurance with CASCO, but they cover the main risks that occur with many cars. Differences in types of auto insurance KASKO are in the list of services and the amount of payments. Full or partial insurance provides full or partial compensation. According to service packages, the policy can be aggregate, non-aggregate, with a deductible. Each of these varieties is worth staying separately.
The conclusion of a partial CASCO policy agreement allows the owner to select the main risks in his opinion. Thus, the total cost is reduced. Funds for damages are often covered, and hijacking or theft of parts is removed from the list. Damages are due to damage, destruction of the car as a result of all the reasons specified in the contract, even vandalism. This type of insurance is chosen if the car is well protected from theft: it is in the garage, in the parking lot with security, has a protection system, according to statistics it is rarely hijacked.
Aggregate insurance provides for a reduction in the amount to be paid upon the occurrence of each subsequent case. The funds that the owner receives, deduct from the total amount of insurance. Aggregate insurance saves a lot of money for experienced drivers. The contract is concluded by drivers who rarely get into accidents, drive carefully and carefully, and therefore can get into a traffic accident with relatively minor damage.
The non-unit CASCO policy provides for full compensation for damage as many times as necessary. This policy will be more expensive than the aggregate. It will be a good choice for drivers who often get into accidents, live in not very prosperous areas, where vandalism often occurs.
Insurance with a franchise is different from other types of fact that the owner himself pays a certain amount fixed in the contract. There are conditional and unconditional franchise. They differ in their approach to determining payouts. That is, if the damage is 10,000, and the conditional deductible is 5,000 in the contract, the company will cover the entire amount itself. And vice versa, if the damage is 10,000 and the unconditional deductible is 5,000, then the company will assume the difference, that is, 5,000. Having a deductible significantly reduces the total cost of the policy. It can be deferred, take effect after the first case, or act immediately.
Hull in installments
Insurers offer the purchase of a policy in installments. In this case, the amount is divided into certain parts and is not paid at a time. The company makes it possible to pay the full amount in two or four installments throughout the year. The disadvantage of such a design of an insurance contract is to a greater extent the need for a one-time payment of the premium for an insurance event.
What is CASCO telematics?
Insurers have come up with a very good type of risk reduction on the possibility of their payments – a telematic device. Companies offer to conclude an agreement on the total mileage of a car per month with the choice of a tariff plan. After such a choice, a special telematic device is installed on the vehicle, which reads the data and evaluates the driving style of a particular driver. After processing the received data, an estimate (up to 100 points) is formed, on the basis of which the driver receives a discount on the next month’s policy.
Main types of risk
Risks for insurers are determined by insured events. The onset of the event, after which the policyholder will be paid the payment, this is the insured risk. Depending on the cost of the policy, the list of risks will be different. There are complex and individual risks. Comprehensive include various types, formed into a single term. Individual relate only to certain risks that are specific to specific cars.
Total loss of the vehicle as a result of criminal acts of a third party. For such actions is usually subject to criminal liability. Car theft is possible with or without all documents. Cars steal often and more. The onset of insurance claims for theft occurs with frightening regularity, and therefore the coefficient for the inclusion of such a function will be high for cars that are popular with thieves.
Comprehensive risk, which includes various types of car damage:
- Accidents – when leaving the parking lot, on a public road, and even when the car is not moving;
- fire, arson, explosion;
- natural disasters: severe thunderstorms, earthquakes, floods, hurricanes, floods, landslides, and more;
- vandalism, intentional damage to a car by third parties.
The insurer adds this risk only at the request of the insured. Accidents include circumstances that are absolutely independent of the owner of the car, occur by chance and there is no possibility to foresee them.
In this category, you can record cases where the property loses its commodity value. A car repaired after an accident, for example, will no longer be worth as much as it could have been helped out if she had not been there. The same character has a risk under the abbreviation GAP. It allows you to compensate for the difference between the original cost of the car and the real one.
The insurance market provides significant opportunities for security and savings for car owners. It is not easy to choose from a variety of types of CASCO insurance, but it is quite realistic if you thoroughly review all the possibilities.