How to insure a car older than 10 years under OSAGO and CASCO

What age car can be insured under CASCO?

Mostly CASCO is issued for new cars, which are characterized by expensive repairs. Vehicles without mileage are less susceptible to rapid wear and tear and have durable mechanisms. These factors are considered a kind of guarantee of the feasibility of the transaction for insurance companies, and also allow motorists to receive the necessary protection against risks.

In cases with old cars, the situation is a little more complicated. Typically, insurers are ready to provide protection for cars whose age ranges from 7-10 years. It is worth knowing that the lower limit (7 years) is provided for domestically produced vehicles. According to many, the Russian auto industry is not reliable. Insurance companies appear to share this view and are reluctant to expose their businesses to risk.

The age of the car to be insured can be up to 10 years, if the car is foreign-made. Vehicles from 7 to 10 years are insured on standard terms with the possibility of choosing any of the insurance programs provided by the company. The package may also include a compensation option that does not take into account the normal wear and tear of the vehicle.

In recent years, some insurers have made concessions to vehicle owners and raised the age limit for insured cars to 12 years. However, this condition implies a number of restrictions when concluding a transaction. Compensation payments can only be provided based on normal wear and tear. There are a number of other restrictions that you should ask your insurance company representative about.

There are rarely offers on the market that allow you to insure older cars. However, it is rare to find insurers willing to take such a risk. It is possible to insure a car older than 12 years under an individual insurance contract, which usually does not cost motorists a good price.

It is important to be prepared to provide the insurer with the result of the vehicle assessment. This information will allow the insurance company to assess the possible risks of concluding a transaction.

Is it profitable to insure an old car?

The decision regarding the advisability of insuring an old car is made by each car owner individually. It is impossible to give a universal answer to this question. However, the benefit of the transaction can be assessed by analyzing related factors.

Amount of insurance coverage

Old cars usually do not have a high price (unless the cars are rare, which are insured under special conditions). The low market value means that the driver will not have to pay a large amount for voluntary insurance.

Typically, inexpensive policies have a small amount of compensation payments. It is possible that the funds received may not be enough to cover repair costs.

Terms of the transaction

Insurance companies are reluctant to provide coverage for older cars. To neutralize possible risks, the insurer puts forward more stringent conditions for the provision of services. It is important to carefully read the terms of the contract and evaluate the feasibility of the transaction.

Availability of a franchise

A deductible presupposes the presence of a certain amount that is not payable in the event of an insured event. This feature allows you to significantly reduce the cost of the purchased policy. However, drivers must assess whether they are ready to cover part of the damage themselves in the event of an accident.

CASCO cost for an old car

It is a mistake to believe that an insurance policy for an old car is always more expensive than for a new one. This misconception only reflects one side of things: used cars do have a higher rate. However, the total cost is determined not only by the tariff, but also by the total sum insured.

To clearly reflect the real situation, it is worth looking at two examples:

• A car owner wants to insure a vehicle manufactured in 2014, costing 900 thousand rubles. The tariff is 6%. Thus, the driver will have to pay 54 thousand rubles for insurance.
• The owner owns a car with a market value of about 200 thousand rubles. The tariff in this situation will be 12%. The motorist will pay 24 thousand rubles for a CASCO policy.

A favorable tariff rate is not the only way to reduce the cost of a policy.

Other factors influencing the cost include:

• aggregate sum insured;
• break-even;
• coefficient of age and experience of motorists;
• the presence or absence of anti-theft systems;
• the use of special insurance programs (for example, insurance before the first risk occurs, 50/50 and others).

You can get acquainted with the final amount of CASCO insurance using a special calculator. The possibility of calculation is provided on all websites of licensed insurance companies.

Is there any benefit to insuring a less than new car?

The question of benefit arises one of the first for owners of older vehicles. Many people believe that purchasing an insurance policy will be unprofitable, so they refuse insurance. In practice, it may turn out that CASCO insurance for an old car will cost less than a policy for a new car that has recently left the factory.

Attention! Regardless of whether the old or new car is involved in an insured event, the cost of new parts and service at the service station will remain the same.

Also, under certain conditions, you can significantly reduce the cost of CASCO insurance. We will look at ways to benefit below. It may be noted that the full cost of repairs is not always covered. Therefore, there is a chance to save on the purchase of parts by covering them with a policy.

The owner of the vehicle will only have to pay for the work of the craftsmen. And in general, many car owners take out insurance only in order to, if necessary, get new parts for their old car (we wrote about why else you need a CASCO policy here).

How to make your policy cheaper

In order to attract the target audience of the product, insurers offer a variety of insurance packages. This approach provides motorists with the opportunity to choose the most suitable program, and insurance companies with sustainable income. To get the most profitable product, the driver must take into account individual preferences and become familiar with the features of insurance products. You can save money using common service packages.

Partial CASCO insurance

Unlike a full package of insurance services, partial insurance provides protection only against certain risks. The owner of the vehicle independently determines which insurance events will be indicated in the policy. The most common partial insurance package includes protection against car theft and theft.

When choosing partial insurance, the service user pays the full insurance premium only for the selected risks. Other insurance events are subject to a deductible, which ranges from 70 to 90% of the cost of the vehicle. Thus, the cost of voluntary insurance is reduced by half.

System 50x50

The use of this system assumes that the motorist pays only 50% of the cost of insurance. However, if an insured event occurs, the owner of the vehicle will receive only half of the total amount of losses.

This means that after an accident there are two possible scenarios:

• the driver receives compensation, adds personal funds to the amount received and repairs the car;
• the car owner receives support from the insurance company, does not contribute his own funds and receives only half of the necessary repairs.

CASCO with reimbursement only for the cost of spare parts

A fairly popular insurance product that is actively used by owners of used cars. Under the terms of this agreement, the insurance company undertakes to pay for the purchase of original spare parts for the vehicle. The insurer is not responsible for carrying out repair work. The motorist receives a benefit of up to 45% percent.

Application of coefficients

For drivers with a positive driving history and extensive experience, preferential terms of voluntary insurance are provided. Also important indicators for reducing the cost of protecting movable property from risks are the age of the motorist and the features of his cooperation with the insurance company.

CASCO limited mileage

This program is designed for motorists who do not actively use their car. This feature suggests that the risk of certain insurance events (for example, in an accident) for such drivers is much lower.

The car must have a mileage ranging from 5 to 20 thousand kilometers per year. If the motorist exceeds the permissible limit, he will have to pay the previously saved amount towards insurance.

Aggregate sum insured

The “Aggregate Sum Insured” insurance package implies that compensation payments under CASCO cannot exceed the average market value of the vehicle. In this case, the insurance amounts add up. That is, when providing compensation for each insured event, the amount of the previous compensation is deducted from the payments.

You can understand the features of this insurance package using a specific example. You need to imagine that the owner of a car insured under CASCO was involved in a traffic accident, as a result of which he received damage in the amount of 50 thousand rubles. Then the policyholder’s vehicle, with a market value of 300 thousand rubles, was stolen by criminals. Under insurance, the motorist will receive the amount minus the previously provided funds, that is, 250 thousand rubles.

Benefits for new clients

Insurance companies attract new customers with various discounts. Market representatives are ready to reduce the cost of the policy by 5-35%. You can also get a discount for purchasing a policy online.

Other offers

Often, insurers provide a discount if the driver wishes to purchase several insurance products at once. The benefit of such a solution is on average about 15%. Since there is quite fierce competition in the insurance market, companies are constantly developing new attractive offers. It is important to check their availability with the organization’s employees.

Conclusion

So, the question of whether voluntary insurance of used cars is profitable remains no less ambiguous than the definition of what CASCO is - the Spanish “helmet” or the English “acrobatic trick”.

The recipe here could be this: CASCO for used cars can certainly be beneficial with a scrupulous analysis of many factors. Among them are the age of the car owner, length of service (by the way, discounts are also provided for them), the most likely type of insured event (road accident, theft, intentional damage by a third party, hitting a tree stump - for extreme sports enthusiasts, etc.).
Of course, you can’t take everything into account, but according to probability theory, and this is still a branch of mathematics, the occurrence of a random event is natural when the experiment is repeated many times. It's also unclear. Post Views: 7,394

Which insurance companies and under what conditions can you get insurance?

Most representatives of the insurance market refuse to cooperate with car owners whose vehicles are older than 10 years. But despite this, some insurance companies are ready to protect this category of motorists from risks.

Thus, owners of older cars still have a choice. It is important to evaluate the personal benefits of cooperation with each company and make an informed decision.

Features of repairs after an incident certified in the contract

When taking out an insurance policy, the agreement with the insurer specifies the maximum sum insured , which is equal to the current market value of the insured car.

Naturally, as the age of the car increases, its value decreases. And since the full insurance amount is paid only if the car is stolen or completely destroyed, the insurance company will allocate less than half of the current value of the car for repairs.

Since the price of new parts can be quite high, owners of old cars prefer to buy CASCO insurance only for a more profitable purchase of spare parts. Having received funds, they can use the services of a budget service station. Or, if the contract specifies repairs at the insurer’s expense as compensation for damage, the car is sent to a cheap service station that is a partner of the insurance company (we wrote in more detail about when the insurance company pays compensation and in what cases it offers repairs here?).

Lower payments may also be provided due to wear and tear of the vehicle. This parameter is also indicated in the insurance contract and is recorded either monthly or daily. When a car falls into a situation specified in the agreement as an insured event, the insurance organization evaluates the wear and tear of the car at the time of damage and can accordingly reduce the amount of the final compensation payments.

Attention: it will be more profitable for car owners to calculate depreciation by day. Then for an insured event that occurred at the beginning of the month, he will be able to receive more complete compensation.