What is the difference between CASCO and OSAGO insurance?

OSAGO

The decoding of the abbreviation OSAGO sounds like Compulsory Auto Civil Liability Insurance. A car is a source of increased danger to others, so its owner insures his property against the possibility of damage. OSAGO is insurance that covers damage caused to someone while driving a car. Compulsory car insurance has existed in our country for more than 15 years and has been continuously improved all this time. Lawmakers, automobile experts, and ordinary drivers criticize the system, accusing insurers of trying to profit from ordinary citizens. On the contrary, companies talk about the unprofitability of this type of activity. In this article we will not discuss who is right. Let's look at the difference between CASCO and MTPL and tell you about the main features of each type of insurance.

Explanation of the abbreviation OSAGO

The term OSAGO, the abbreviation for which is Mandatory Auto-Civil Liability Insurance, implies only compensation for damage to transport and citizens when the client is at fault. But MTPL does not compensate for damage caused to your own car, and this is where civil liability is expressed.

OSAGO transcript

In Russia, this type of insurance was recognized as mandatory for all vehicle owners in 2003. In addition, the person who is entrusted with driving the car can receive the policy; in this case, it is not necessary to present a power of attorney. You only need the following documents:

passport of the owner (and a proxy, when registering without the owner);
car registration certificate;
driver's licenses of all citizens who will be allowed to drive a vehicle;
diagnostic card;
certificate of form No. 4, if the client wants to receive a discount for accident-free driving.

CASCO and OSAGO, what is the difference?

Under the MTPL policy, damages to victims of road accidents are paid. If an accident occurs due to the fault of the policyholder, the company sends for repair the car that was damaged by the owner of the MTPL policy. In this case, he himself does not receive compensation and restores his vehicle at his own expense. Under the CASCO policy, the car owner is compensated for the repair of his damaged vehicle. This is precisely the difference between compulsory and voluntary types of insurance. It is wrong to discuss which is better OSAGO or CASCO? These are different types of insurance that do not replace, but complement each other.

What is more expensive: CASCO or OSAGO?

The answer to this question should already be clear, since we have figured out what CASCO is and what OSAGO is. CASCO is a more expensive type of insurance, as it covers almost all possible cases of damage. CASCO will pay even if you scratched your bumper on a parking post. In this case, OSAGO is powerless.

At one time there was even an advertisement for CASCO: “Hit your car with a heavy package? So CASCO will come to the rescue!” So-so advertising, of course, but it really allows you to briefly and in simple language describe the meaning of voluntary transport insurance.

The cost of CASCO insurance may differ from the cost of compulsory motor liability insurance by ten times. This difference is due to insurance risks, the history of the policyholder and the value of the insured property.

Limits of liability

The MTPL law now provides liability limits: 500 thousand rubles. for compensation for damage caused to the life and health of the victim in an accident, and 400 thousand rubles. for compensation for damage to property. If several people or cars were injured in an accident, then these amounts apply to everyone.

In approximately 90% of cases, this money is enough to compensate for the damage. But if a serious accident occurs and expensive cars are involved, then the amount of damage may exceed the limits provided by law. In this case, the insurance company covers the costs within the agreed limits, and the person responsible for the accident pays the amount exceeding the limits.

It is possible to protect yourself from serious expenses in the event of major damage. To do this, you need to apply for an extension to your MTPL policy. The car owner receives an additional insurance policy. If an insured event occurs and the calculation of damage exceeds the limit under compulsory motor liability insurance, then part of the money will be paid within the framework of compulsory motor liability insurance, and the excess amount will be paid under an additional compulsory motor liability insurance extension policy.

Not all companies enter into OSAGO extension. Before completing a transaction, it is necessary to check the policyholder. This is a necessary measure, since many scammers have settled in the MTPL market.

Amounts of payments under compulsory motor liability insurance

The amount of compensation for damage incurred during an accident is calculated based on an assessment of the actual damage to the vehicle. The condition of the car and the presence of damage is examined by an independent appraiser or a service station, where the damaged car will be repaired in the future.

In cases where the restoration of a vehicle requires an amount exceeding the 400 thousand rubles established by law, then the entire difference is paid by the person responsible for the accident from his own funds.

The amount of compensation for damage to life and health is calculated based on a special table. The total amount is a percentage of the amount of insurance payments. A person injured in an accident must provide the insurer with documents that make clear the cost of the performed or future treatment.

When registering for compulsory motor liability insurance, regardless of whether this procedure is being carried out for the first time or not, the car does not need to be sent to a technical station for inspection. The person at fault does not receive any compensation under the motor vehicle liability law.

What does the cost of compulsory motor insurance depend on?

The price of the policy is influenced by many factors: region of registration, vehicle power, age and driving experience of people allowed to drive, accident-free driving rate. The risk group includes young people under the age of 22, beginners with less than three years of driving experience.

The accident-free driving rate decreases with each break-even year and increases sharply if the payment was due to the fault of the policyholder. If several people are included in the policy, then when calculating the final amount, they are equal to the worst. Therefore, it does not always make sense to include someone in the policy “just in case.”

The policy can be with a certain number of people allowed to manage it and without limiting them. In the second option, the price of the policy is as high as possible, since the highest coefficients of accident-free driving, length of service and age are taken. There is an important nuance: if a person regularly purchases an MTPL policy without restrictions on those allowed to drive and his data does not appear in the MTPL policy, then his accident-free driving ratio not only does not increase, but also returns to the base indicator after a few years. Thus, it turns out that a policy without restrictions on those admitted to management can be beneficial in one situation, but unjustifiably expensive in another.

From 2021, the so-called “tariff corridor” began to operate: insurers have the right to increase their tariffs by 20% up and down from the size of the basic prices. The age-experience coefficient is calculated more individually.

An insurance agent from FAVORIT MOTORS Group of Companies will help you choose the best option for purchasing a MTPL insurance policy. Our specialists undergo special training and are well versed in all the nuances of the insurance market.

What is needed to apply for compulsory motor liability insurance?

It is enough to present documents for the car and indicate the details of the driver’s license of people allowed to drive. The MTPL rules stipulate that the insurer has the right to inspect the vehicle. In practice this is rarely done. This point exists to combat fraudsters who, without repairing the car, simulate fake accidents. Also, sometimes an inspection is required in order to find a reason and refuse to issue a policy. Often insurers do not like to issue compulsory motor vehicle liability insurance for motorcycles and ask to see it.

What is OSAGO

Any citizen of Russia must take out an MTPL policy when purchasing a car of any brand. This is a mandatory type of civil liability insurance. In the event of an accident, all financial responsibility falls on the insurance company. The MTPL policy reimburses material assets in the form of monetary compensation to the owner of a car damaged in an accident and to citizens who were physically injured (sustained health damage in an accident).

Registration of compulsory motor liability insurance is a mandatory procedure for all car owners without exception; such requirements are written down in Russian laws. The procedure related to the registration of a “motor citizen” must be completed before the vehicle is registered with the traffic police. The insurer has no right to refuse to conclude a compulsory motor liability insurance contract for anyone.

If property was damaged as a result of the careless actions of another driver, then the car owner has the right to apply for compensation under the MTPL agreement. The payment will be made if the person at fault has an auto insurance policy. The insurance company's responsibility is to repair the car at a service station. In some cases, refunds may be permitted.

Compensation for health damage is returned to the citizen in any case, even if the person at fault for the accident does not have a compulsory motor liability insurance policy. If it is impossible to identify the culprit of the accident or in the absence of an auto insurance contract, the Russian Union of Auto Insurers will deal with compensation for damage.

Technical inspection

Cars that are three years old do not require a technical inspection when taking out a compulsory motor liability insurance policy. Older cars need to come to an inspection point, where specialists will assess the condition of the car. The diagnostic card for cars aged 3 years is valid for two years; older cars must be inspected annually.

At all FAVORIT MOTORS Group dealerships you can undergo a technical inspection. Moreover, our clients can receive the document required to purchase an MTPL policy after scheduled maintenance.

Refusal to pay damages

The Rules and the MTPL insurance contract list cases when the company refuses compensation for damage. The insurance company will not pay if the car was damaged during competitions, tests or training driving, cargo defects appeared during loading or unloading, money, antiques, works of art, and jewelry were damaged during the insured event.

There are also cases when the company compensates for the damage to the victim, but then has the right to demand that the culprit of the accident return the money spent:

the harm was caused intentionally;
the person responsible for the accident was intoxicated;
the culprit of the accident did not have the right to drive a vehicle;
the driver fled the scene of the accident;
the driver is not included in the list of permitted persons (when using a compulsory motor liability insurance policy with a limited number of persons permitted to drive);
the insured event occurred when using the vehicle during a period not provided for by the MTPL agreement;
when filling out the documents independently, the insurer was not sent a copy of the accident form;
the car was not provided for inspection;
The diagnostic card has expired for taxis, buses, trucks intended for transporting people carrying dangerous goods;
when concluding a contract, a person provided false information, which led to an unreasonable reduction in the amount of the insurance premium - for example, they try to save money by indicating their place of residence in a region where compulsory motor liability insurance is cheaper.

Types of CASCO

As we found out, this type of insurance is exclusively voluntary. There are several policy options.

Any car owner can insure his vehicle with an auto policy, using several of its variations:

Damage. This option is the most popular. The document covers damage resulting from a transport accident, natural disaster, or fire. In addition, such insurance involves compensation for damage received from people or animals.
Hijacking. Not the most popular way of insurance. The problem is that almost all insurance companies, as a prerequisite, require the installation of a special satellite search system, blockers or other protective devices on vehicles. Not every organization is ready to issue such a policy option, since there is a risk that the owner of the vehicle will rush to get rid of such personal transport.
Comprehensive insurance. Combines the two car policy variations presented above. This type of Auto and CASCO is recommended to be issued if the car owner bought the vehicle on credit or he is the owner of an exclusive car.

The ability to choose the type of insurance that is convenient for you is a great success. Definitely, of the presented options, the third one is the most reliable. However, the cost of such a car policy is high. What makes it so expensive and inaccessible? Let's consider what the cost of CASCO depends on.

Compensation form for compulsory motor liability insurance

Many scammers have appeared on the MTPL market. Various frauds: false accidents, incorrect assessment of damage, provoking penalties. Therefore, in 2018, “direct settlement of losses” was introduced under OSAGO: the victim’s car is sent for repairs to a technical center with which an agreement was concluded. Direct insurance does not apply to motorcycles and in cases where insurers are unable to send the vehicle for repairs. For example, a damaged car is located in such a remote area that there is not a single service station nearby. Or the car is rare and there are no spare parts for it. In this case, the damage is compensated in money, and the assessment takes into account wear and tear. For example, for an 8-year-old car, the body part will be valued at about half the cost of a new one.

When restoring a car under compulsory motor liability insurance, the damage is calculated in accordance with special reference books updated every 6 months. There are no restrictions on the manufacturer of spare parts, so we install both original parts and products from third-party manufacturers.

Voluntary CASCO insurance

The most common type of voluntary motor vehicle insurance is CASCO. Insurance companies provide a guarantee of reimbursement of funds under such policies in cases where there is damage, loss or theft of the car, no matter whose fault it was - even if the car was crashed by the owner himself. The following facts can be classified as insured events:

illegal actions of third parties;
objects falling on the car;
disaster;
road accident;
theft or theft;
fire or arson.

When concluding an insurance contract, each company engaged in CASCO insurance determines its own risk options and a set of specific situations. If a car is purchased on credit, the insurance company determines the set of risks in agreement with the bank. However, the basis for voluntary insurance of most Russian insurers is precisely the above factors.

There are rules of voluntary insurance, which also indicate various methods of compensation for material damage. In cases where a traffic accident or other insured event occurs, the insurer is obliged to pay the costs of the service station spent on repairing the vehicle or pay money to compensate for the cost of damage.

There are two types of CASCO: it can be partial and complete. Full insurance also includes protection against the risks of damage and theft.

With partial insurance, you can choose one or more risks: damage, accident or theft. Such insurance is cheaper, but if the owner of the car has an accident due to his own fault, and the car was insured only for the risk of “Theft,” then the owner will not receive anything.

There should be no questions about theft. If the car is stolen, then the insurance pays specifically for the amount specified in the contract. Damage is considered to be the case when the car was damaged:

in a traffic accident;
in a natural disaster;
in case of fire;
in case of damage from falling various objects, for example, stones, trees, and so on.

The complete loss of a vehicle is also considered damage.

Important! The main feature of CASCO is that the insurer compensates for damage, no matter how guilty the driver was driving the car at the time the insured event occurred. And it does not pay compensation to the second participant in the incident, even if he is not to blame.

There is one important condition for refusing a cash payment. Intentional damage to a car by the driver who was driving or by the owner of the car deprives the right to receive compensation.

If an insured event does occur, the owner of the car must contact the insurance company with an application to receive funds or pay for repairs (depending on what is specified in the contract).

E-OSAGO

Now you can insure a car under MTPL directly at the insurer’s office, use the services of a broker, or purchase a policy remotely. The algorithm is simple: you need to go directly to the website of the company you are interested in or the Russian Union of Auto Insurers, enter data (vehicle approved for driving, technical inspection, etc.), pay the bill and receive a policy.

It is enough to have a printout of the policy with you. If necessary, the traffic police inspector can check the car using the database.

Which is better to choose?

This information predetermines the choice of car insurance for a particular driver based on his preferences. But what to do in the event of an accident if you have two policies?

In this situation, it is important which party the driver acts as: the guilty or the victim:

Those at fault for an accident do not receive payments from compulsory motor liability insurance, and the car can only be restored under CASCO insurance. Accordingly, with an aggressive driving method, dangerous operating conditions, etc. The latter type of policy is preferred.
The injured party prefers CASCO if the contract includes a full repair clause, but this can significantly increase the cost for the next period. In most cases, where the damage is insignificant, it is more advisable to receive payments under compulsory motor liability insurance. Then the motorist receives a discount on CASCO and maintains his position in his KBM rating.

If a car is purchased on credit or in installments, purchasing a CASCO policy in most cases is a prerequisite, because the motorist is not completely the rightful owner.

To summarize, the following important points should be highlighted:

OSAGO is regulated by law, CASCO is not;
in case of bankruptcy of the insurer, the policyholder under CASCO will be able to resolve issues regarding payments only in court, and under OSAGO - even by applying to the RSA;
with additional insurance, only the car acts as an object;
damage is determined both by insurers and hired independent experts;
the cost of maximum payments under a compulsory insurance policy cannot exceed 500,000 rubles, but in the case of additional payments, its size may be commensurate with the average market value of the car.

It is worth considering that each case is individual, and instead of payments, the insurer may offer compensation in the form of repairs at a service station. But according to the new legislation, stations can establish details of former use, taking into account the degree of wear and tear, which also requires an analysis of which type of policy to choose in a particular situation.

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Penalty for lack of insurance

Responsibility for the absence of a policy is stipulated by Art. 12.37 Code of Administrative Offences. If the driver is a person who is not included in the policy, they will be fined 500 rubles. If there is no policy at all, then the amount increases to 800 rubles.

The issue of a significant increase in the fine is being discussed. In addition, it is planned to introduce automatic policy availability control. Photo-video recording cameras will send data to be checked against the database for the presence of a compulsory motor liability insurance policy, and if there is no such policy, the owner will receive a “letter of happiness.”

Mandatory insurance

Regardless of the desire of the car owner, he must have a valid MTPL policy in order to drive the car legally (Article 4 No. 40-FZ).

The absence of a compulsory insurance policy is punishable by a fine of 800 rubles (Part 2 of Article 12.37 of the Code of Administrative Offenses of the Russian Federation).

Whether to apply for CASCO insurance or not is up to each car owner to decide for himself. But a compulsory motor liability insurance policy must be required.

CASCO

Contrary to popular belief, CASCO is not an acronym. From a grammatical point of view, it is correct to write the word in ordinary letters, since the term comes from the Spanish casco, that is, “helmet,” or the Dutch casco, which means “body.” The capital letters appeared due to a misunderstanding; they began to write them this way to resemble the abbreviation OSAGO. Therefore, various attempts at decoding (for example, Comprehensive Auto Insurance) are, by definition, incorrect. But let's get back to the main thing.

CASCO is a bet between the insurance company and the car owner. If the car is damaged, the company will pay for the damage. If the entire period passes without incident, then the money paid becomes the company’s net profit.

What is the difference between OSAGO and CASCO? The main difference between CASCO and OSAGO is that with CASCO the car itself is insured, and with OSAGO the driver’s civil liability is insured.

CASCO insurance is voluntary, but in some cases it may become mandatory. For example, when buying a car at a car dealership with bank money, the bank requires a CASCO policy. In this way, the credit institution ensures the return of its money. There is no need to go to the bank specifically to draw up the document.

CASCO - an abbreviation or not

With the advent of this type of insurance, auto experts and ordinary citizens had many questions related to the decoding of the term CASCO. In this case, deciphering the abbreviation is not required, since CASCO, in fact, is not such.

The word casco (Italian: “casco”), translated from Italian, means nothing more than “board”. Initially, Italian companies used this type of insurance exclusively for sea vessels. Marine board insurance implied compensation for damage caused to the structural elements of water transport.

There are several other possible versions of the origin of this term:

Dutch casco is a body,
Spanish casco means skull,
English cascade is translated as practicing an imitation of a fall.

The exact decoding of this term is known, but the exact country of origin of this word causes a lot of controversy. At the moment, it is generally accepted that the term CASCO still comes from the Italian language, and other versions are erroneous.

Often you can even hear variants of the meaning of the abbreviation CASCO from Russian auto insurance companies and car owners.

The decryption (the most popular, but incorrect options) is named as follows:

Comprehensive Automobile Insurance Excluding Liability (CASIO).
Comprehensive Automobile Insurance Except Liability (CASCO).

To increase the client base and interest of drivers, agents of insurance organizations are trying to decipher the term more and more sophisticatedly.
If this is not an abbreviation, then why is it customary in Russia to write this term in capital letters? The fact is that, by analogy with the compulsory type of OSAGO insurance, the name of this policy began to be prescribed exactly this way. This is most likely done due to the peculiarities of human perception. The correct spelling is CASCO.

Policy cost

The price of a CASCO policy is influenced by the cost of the car, its attractiveness to car thieves, and the profile of people allowed to drive: age, length of service, data on participation in accidents. Each insurance company has its own statistics, based on which employees calculate the cost of the policy. Therefore, the price of a policy for the same model varies from company to company. The insured amount should not exceed the cost of the car.

Most often, the insurance line is one year, but by agreement of the parties it can change. Insurers do not like short terms, so insurance for a year and 6 months can cost almost the same.

Company bankruptcy

If the policyholder goes bankrupt, the policy expires. In this case, it is possible to demand compensation through the court. Perhaps the bankrupt still has some assets left.

Bankruptcy should not be confused with license revocation. In the first case, the company has no funds; in the second, it simply does not have the right to engage in insurance. Although deprivation of a license is a bad sign. Very often this is followed by bankruptcy. Therefore, if information appears about the deprivation of a license, demand a refund of part of the policy and enter into an agreement with another company.

Franchise

This is the obligation of the insured person to bear part of the losses at his own expense. In this way, companies try to avoid paying for minor damage and subsequent minor repairs. The higher the deductible, the cheaper the cost of the policy.

A franchise can be catchy or unconditional. With a conditional franchise, the company is not liable if the loss does not exceed a certain amount. The insurer only pays for major damage.

With an unconditional deductible, a specified amount is always deducted from the damage. For example, the damage amounted to 300 thousand rubles. If the contract states that the franchise is 10 thousand, then they will pay 290 thousand, and 10 thousand will have to be paid at their own expense.

Refusal of compensation under CASCO

In the voluntary insurance system, the rules may differ, so you need to read them carefully.
Most companies will refuse if the driver was drunk or someone who is not on the list of those allowed to drive. There is a certain period within which an incident must be reported. Risk requirements for theft may be specified. For example, you need to return all the keys to your car. Previously, there were requirements for the mandatory presence of a car at night in a guarded parking lot, but now such clauses have already become an anachronism. Car insurance Catalog of new cars Catalog of used carsAsk a question