Car insurance has become firmly established in the lives of modern motorists, but the latter often wonder whether they should choose CASCO or MTPL, which policy is more profitable when an insured event occurs.
It is at least incorrect to compare these 2 options, because we are talking about different types of insurance, the first of them is voluntary, and the second is mandatory. Still, the topic deserves special attention.
What is better in case of an accident: OSAGO or Casco?
If we omit all the subtleties and risks, then definitely Casco. Because in this case:
- you will have to collect much fewer documents specifically for applying for Casco,
- in many accidents, the waiting time for the necessary papers under compulsory motor liability insurance can be up to a year (if the incident involved victims),
- the payment limit is much higher for voluntary insurance policies,
- companies are more loyal to customers and are less likely to underestimate payments.
But don’t rush to write a statement. After all, the actual benefit depends on many factors. Let's find them all out!
How to determine the type of policy
In simple terms, the policy form will help you understand what type of insurance you have. According to OSAGO, at the top of the document, immediately below its name and number, a phrase like “compulsory civil liability insurance...” is written. For CASCO insurance, the form at the very beginning indicates the type of insurance.
Also, many insurers provide policy verification services on their websites. By indicating the document number, you can find out the type of insurance and clarify its legality. The authenticity of OSAGO and the correctness of the choice of coefficients is checked on the RSA website.
Where should I go if I caused an accident?
If the decision was made only against you in an accident, then the question of which is more profitable, Casco or OSAGO, is acute only because of ignorance of the basic principles of car insurance and right now will disappear by itself.
Since OSAGO insures the driver’s liability, and not property, you do not even have the right to apply for OSAGO. The victim in this insured event will receive payment from your insurance company. And your option is exclusively Casco, since this particular insurance does not depend on whether you are the culprit in this incident or the victim.
Useful video
Let's watch a video on this topic:
The issues of optimal car insurance have long been of concern to drivers and vehicle owners. Statistics show that the safest option for the driver’s financial condition is to purchase a policy of both compulsory motor vehicle insurance and voluntary property insurance.
In the future, this will simplify solving problems related to damage or theft of a car.
Additional Information
OSAGO or CASCO policies must include a clause on regressive claims in the insurance contract. It stipulates the cases in which the insurance company can initiate a civil lawsuit and sue the compensation issued back. This usually happens if:
When is the best time to apply for Casco?
So, we found out above that if you were found to be at fault as a result of an accident, then you can only apply for Casco. In this case, compulsory motor liability insurance works only as insurance for your liability - the insurance compensates for the damage caused to you.
But if you are recognized as the injured party in this insured event, and you have both MTPL and Casco insurance policies, then the choice of where to go is yours. But it is important to learn how to make the right choice after an accident in 2021.
So, the option of voluntary insurance is more profitable in the following cases:
- you have been insured under Casco for the last year (for example, if the car is on credit, and you buy a policy only because the creditor bank obliges you to do so),
- your car is more than 2-4 years old, and you don’t want red tape with the person at fault for the accident and collecting the difference in wear and tear from him,
- you want to collect as few documents as possible,
- you want to wait as little as possible,
- you do not want to contact the at-fault party's insurance company,
- you want to be referred for repairs under Casco only to an official dealer (if the contract provides only for such),
- you are only satisfied with the payment in money, and your Casco insurance will pay you, and not send the car for repairs,
- in an accident, both (or more) participants were found to be partially at fault (mutual fault), and compulsory motor liability insurance will not cover 100 percent of the compensation,
- you have paid money and simply want to exercise your right to take advantage of property auto insurance.
When is OSAGO more profitable?
In turn, it is better to prefer applying for compulsory motor liability insurance in the following situations:
- you are a victim of an accident and understand that if you apply for Casco, the price will rise next year, but compulsory motor liability insurance will not,
- you want to receive payment instead of repairs, and in some cases, under compulsory motor liability insurance, this is how compensation for damage occurs, in turn, under the Casco agreement, only repairs are clearly stated for you,
- you have entered into a voluntary insurance agreement with a deductible, and do not want to partially pay out of your own pocket,
- you have drawn up a European protocol, and your contract does not provide for such registration of an insured event,
- your car is less than 2 years old, and under compulsory motor liability insurance you are legally required to be sent to a dealer for repairs, while under property insurance, you are required to be sent to any car service center.
Price
The most popular thing in recent years has been the registration of an insurance contract for new cars. Registration of an MTPL policy takes into account the following indicators:
- type of car or other vehicle, as well as client status - individual or legal entity, etc.;
- in what territory the vehicle is registered, and where the contract is concluded. This is due to the different tariff rates for different regions;
- the driver's driving experience of the car owner, plus his age.
Since in CASCO insurance the object of insurance is the car, the main parameters for calculation are such indicators as the age of the car, its cost, the completeness of the list of insured events and other indicators.
According to statistics, the cheapest CASCO policies can cost less than 10 thousand, and may require several tens of thousands from the owner.
So what should you choose?
So, let's take a closer look at all these subtleties and find out why and under what circumstances repairs or payment of Casco are more profitable and better than under compulsory motor liability insurance.
Increase in insurance prices for next year
This is the most important factor in the choice. The fact is that both types of insurance become more expensive the next year if there are insured events:
- if you applied for Casco in the current year, then next year an increased coefficient will be applied to you,
- the same thing with compulsory motor liability insurance, but, unlike Casco, here only an accident in which you are at fault is recognized as an insured event that increases the cost of insurance.
Thus, perhaps the main criterion for choosing – OSAGO or Casco, is the rise in price of the policy for the next year. But not all insurance companies increase the cost of voluntary insurance.
Conclusion : in many cases, applying under compulsory motor liability insurance rather than under Casco is better for the victim in terms of increasing the cost of insurance for the next year.
What if next year I take insurance from another company?
This is also the best option. But, again, not all companies will suit you. The fact is that many Casco insurers, as of 2021, offer discounts for breaking even in the first organization and, conversely, also increase the cost of the policy if insured events have been reported.
But your current insurer may not increase the price if, for example, you were not to blame for the accident (many companies have this condition), but other organizations simply will not look at this fact.
Conclusion : applying for Casco does not always lead to an increase in the cost of insurance, but manipulations with “running around” between companies can lead to this.
Depreciation calculation
This is rare in Casco contracts. But according to OSAGO, the calculation of compensation is always calculated taking into account wear and tear, which depends on the age of the car and can reach up to 50% for cars older than 5 years.
And, if in the case of sending for repairs, according to the law, you should not care about wear and tear (after all, it is forbidden to install used spare parts), then when you pay, you will receive less. And let’s be honest, very often, even when sent for repairs under compulsory motor liability insurance, you have to face the requirement of additional payment from a car service for new spare parts.
But the difference between what the insurance company calculated without wear and tear and what it paid taking it into account can be recovered directly from the person at fault for the accident. This is what the Constitutional Court of the Russian Federation ruled.
Conclusion : if your car is older than 2-4 years, and you don’t want unnecessary hassles to collect wear and tear or disputes with the insurer and service station, then Casco is better than OSAGO.
Documents for insurance and waiting for payment
OSAGO has a whole set of them:
- your passport, insurance policy, car ownership documents,
- statement,
- accident notification,
- a ruling on the guilt of the second participant or a ruling.
Please note that you can wait up to a year for the latest documents from the traffic police if the accident occurred with injuries or deaths.
In turn, the set of documents for applying under Casco is regulated not by law, but by agreement. But, as a rule, the set of documents is smaller. In addition, you can often apply for Casco without any documents at all, but the amount of compensation or the number of damaged items repaired in this case may be limited.
Conclusion : it is better to apply under Casco than under MTPL if you want to wait less time and collect fewer documents (but not always).
I don't want to contact the insurance company at fault
But under compulsory motor liability insurance you can also contact your insurance... Subject to 2 conditions:
- Only cars were damaged from road accidents.
- both have valid MTPL policies.
The conclusion is obvious.
I want a payment, not a repair
For several years now, compensation under compulsory motor liability insurance has been made in kind - that is, first of all, you are required to issue a referral for repairs. Not the choice of the insurance company, as many believe, but repair as a priority if all the conditions for this are met. But what are these conditions and how to get paid?
Under compulsory motor liability insurance, payment in lieu of repairs can be received in cases where:
- you indicated this desire in your application for compensation in case of an accident, and the insurer agreed (but most often they refuse),
- the nearest service station with which the insurer has an agreement is further than 50 km from the accident site or your address of residence, and transportation is not profitable for the insurance company,
- there are no suitable service stations with which the company has an agreement (including dealers, if your car is less than 2 years old),
- when applying under OSAGO they recognized the total loss of the car, while under Casco they offer repairs,
- if the victim died during an accident (and you receive compensation for him as a relative),
- damage according to insurance calculations exceeds 400,000 rubles,
- you have received moderate or severe injuries, or are disabled, and have chosen payment in your application.
All these points, according to the 2021 OSAGO law, require the insurer to make only payments.
Conclusion : if you want to receive a payment and fall under one of the conditions described above, then it is better to apply under MTPL than under Casco... All this if your Casco agreement only provides for repairs.
I only want to go to an official dealer
Here, too, in the case of Casco, everything depends only on the contract - the list of service centers for repairs should appear in it.
Repair under OSAGO is only possible at a dealer if your car is not older than 2 years.
Conclusion : it is better to apply for MTPL if your car is less than 2 years old.
With mutual guilt
Since Casco insures your property, and OSAGO insures liability in the event of guilt, if all participants in an accident are recognized as culprits, Casco is more profitable. Why?
The point here is that if it is, for example, 50/50 fault, you will receive only 50% of the calculated amount of compensation under the auto insurance policy, because you are partly at fault. And for the Casco agreement, the degree of your guilt in terms of compensation does not matter at all. But please note, again, that the policy in this case may become more expensive for the next year of insurance.
Conclusion : if the fault is mutual, then you need to understand that Casco is better than compulsory motor liability insurance after such an accident.
Franchise
Look carefully at your agreement - often many car enthusiasts do not even suspect that they have entered into it with a franchise.
In our case, it means that the insurance company does not cover a certain fixed amount of damages.
Let's take another example. You were recognized as a victim in an accident, and the amount of damage to you was calculated at 50,000 rubles. At the same time, the deductible under your Casco insurance contract is 30,000 rubles. In this case, the company will reimburse you only 20,000 rubles for this insurance event under Casco. But according to compulsory motor liability insurance there must be a full amount - there are no franchises in compulsory motor liability insurance.
Conclusion : if your Casco agreement implies a franchise, then OSAGO is more profitable.
Differences in insurance packages
Every driver must have a car insurance document with him and should present it to traffic police officers as soon as necessary. If we look at the policy, we can immediately see that we have MTPL or CASCO insurance. What is the difference between these types of insurance?
An A4 document signed by OSAGO is called a compulsory insurance policy. Anyone who drives their own car should have it with them. It is this type of insurance service that we need to purchase annually from insurance agents. CASCO is a voluntary type of insurance. What kind of agreements should be concluded with the insurance company - OSAGO or CASCO? In order to answer this question, you should understand in more detail the features of each type of insurance.
