Changes in CASCO legislation

What is CASCO

In short, CASCO is health insurance for the driver and his vehicle, which comes into force under the following circumstances:

• The occurrence of an accident where the client of the insurance company is recognized as the guilty party (this type of protection is called “civil liability”, and it implies compensation for damage to third parties affected by the actions of the policy owner);
• Damage to the insured car due to a natural disaster, a traffic accident, an act of vandalism or due to one’s own negligence (an option from the extended program that provides compensation for the appearance of scratches, dents, chips and other damage to the body and interior of the car. If the vehicle is used in taxi, then for it financial protection extends only to external damaged parts);
• Theft of self-propelled equipment or theft of its individual paraphernalia (if such a situation arises, insurance covers only part of the cost of the stolen car. In addition, the fact of the loss of the car must still be proven with the help of law enforcement agencies);
• Receiving an industrial injury or other injuries due to an accident, attack or personal carelessness (an option from the extended list of insurance services, which is not voluntary only when leasing a car);
• Vehicle breakdown on the road (the function of calling a specialist to the scene of the accident, followed by evacuation of the vehicle to a service station, provided for a separate surcharge).

Above we looked at the basic insurance risks included in two standard packages of any insurance company (RESO-Garantiya, Ingosstrakh, Tinkoff, etc.). But the legislation of the Russian Federation does not prohibit citizens from making adjustments to the contract and drawing up an individual list of circumstances for compensation. After all, this can significantly reduce the cost of CASCO insurance. The most popular programs for saving money on purchasing a policy include:

• “Total” - compensation for damage only in case of complete destruction of the car;
• “50x50” - a 50% discount provided for drivers who have never claimed an insured event during the period of validity of the motor vehicle license (ideal option for experienced motorists);
• “Mini” is a package that allows you to receive compensation only for civil liability or in case of vehicle theft.

It is important to know! In addition to purchasing an economy program, a banal deductible can significantly reduce the cost of a CASCO policy. But before including it in the contract, you need to make sure in advance that it is really beneficial for you.

Types of CASCO

The car owner can choose one of two options:

1. Full : the car will be insured against theft and damage. Many insurance companies supplement this option with options convenient for the policyholder - a specialist visiting the accident site, providing assistance in preparing documents for an accident, etc.
2. Partial : vehicles are insured against damage only.

The second option allows you to save on the cost of the policy.

But it is recommended for car owners to use it:

• equipped with anti-theft devices and stored in paid parking lots;
• brands that do not belong to the most stolen category.

Validity

According to the regulations of the insurance company, a motorist has every right to independently choose the period of validity of CASCO car insurance, based on his financial capabilities. But the company itself, according to the standard, sets the period for the document at one year. Moreover, even if the client takes out a policy for a shorter period of time, the contract will not be canceled earlier than after 365 days, although it will also not be possible to receive payment under it.

But after the loss of authenticity, the crust will have to be extended so that the material protection of movable property remains in force. However, it is not necessary to trust the agency with whom you had a deal before to carry out the renewal. After all, according to the law of the Russian Federation, nothing prevents a citizen from changing his insurer at any convenient time. And so that the benefits he has accumulated do not disappear, when submitting documents to a new insurance company, it is necessary to prepare a policy with an expired validity period.

What is important to pay attention to when applying for a CASCO insurance policy?

Experts advise taking into account the following criteria:

1. Reputation (rating) of the insurance company in the Russian Federation.
2. List of conditions for CASCO.
3. Cost of insurance.

Self-evaluation of the company according to these criteria will help you avoid common mistakes.

A citizen has every right to file a claim in court regarding specific illegal actions or inactions of the insurer. Russian government bodies (Rosportebnadzor, Antimonopoly Service) will help restore justice.

What does the cost consist of?

When considering the conditions for CASCO insurance, it is worth paying special attention to the cost of documents. You can calculate the price of the policy using the following criteria:

• Driver's age (the minimum limit for this indicator is 18 years. But for citizens over 21 years old, the tariffs are slightly reduced compared to the price of the policy for beginners and pensioners);
• Driving experience (since experienced drivers have a lower chance of crashing their own car than amateurs, the CASCO rate for them is noticeably reduced);
• Age limit for movable property (for vehicles with high mileage, inflated tariffs are often applied. If there are very old cars, agents may even sign a waiver of financial protection);
• Franchise (by freezing a specific amount of funds that the insurance company may not pay to the client when compensating for damage, the price of CASCO will be slightly reduced. But remember that you will have to pay for small expenses that do not reach the established deductible figure yourself. Therefore, if you have a high risk scratch or dent your car, it is better to refuse such savings);
• Number of drivers (if several persons authorized to drive an insured vehicle are included in the contract, the cost will be calculated based on the most inexperienced of them);
• Region of actual place of residence (for citizens who operate their car in dense urban traffic, an increased tariff is provided. But for residents of villages and urban settlements, the rate is significantly lower);
• Make and model of self-propelled equipment (the base cost of the vehicle, its theft statistics, engine power and ease of maintenance are taken into account);
• Availability of a security system (due to the fact that vehicles with alarms are much more difficult to steal, insurance companies offer a discount on licensing for their owners).

It is important to know! Additionally, even the installment plan for a car loan affects the CASCO price. After all, when calculating the tariff, the total amount for the car will be taken into account, along with interest accrued by the bank. And this is about 2-3 thousand rubles of overpayment.

CASCO insurance conditions

CASCO has several legal features. The agreement is valid only within Russia. To travel abroad, you must sign up for an additional agreement to expand your coverage area (for a fee). What, how and in what cases CASCO is regulated is prescribed in Russian legislation.

Policy price and how it is formed

The price varies depending on the demand for services and the reputation of the company. Often the total amount does not exceed 12-13% of the cost of the vehicle. The following criteria have an impact on the cost:

1. Owner's age.
2. List of possible risks.
3. Model and year of manufacture of the vehicle.
4. Features of the franchise.
5. Availability of options (travel abroad).
6. The number of persons driving the vehicle in accordance with the policy.

Depending on the number of criteria listed in the contract, the total cost of the policy can be increased or decreased.

Franchise

The deductible is expressed in monetary terms, the amount that is not paid under insurance. There are conditional and unconditional varieties.

In accordance with the conditional franchise, the client fully compensates for the damage independently if the total amount is exceeded. Regarding repairs after an accident, there are rules in place where funds are not paid for minor damage. Depreciation is taken into account only in the event of theft or complete damage to the vehicle.

The unconditional option is used by companies in most cases because of the benefits. Each time you make payments, a deduction will be made in the amount of the full cost of the franchise.

Insurance compensation

Reimbursement occurs:

1. The car owner attached all documentation to the insurance claim.
2. The company accepted the documents and recognized the case as insured.

The procedure also includes payments for vehicle wear and tear and repairs (instead of monetary compensation). Refunds will not take place in the following cases:

1. Declaration of the insurer bankrupt (there is a court decision).
2. The damage was caused by the owner himself.
3. The contract contains ambiguous clauses that do not allow for a clear conclusion.

Important Features:

1. If a third party pays the full or partial amount of damage, the company does not return it again.
2. If a citizen has received insurance compensation for a stolen car, then after its return he is obliged to return the insurance payments in full or give the insurer the right to sell the vehicle.

The following values ​​apply to the payment amount:

1. Certification from the insurance company.
2. Independent examination.
3. Conclusion of the maintenance company (repairs).
4. Conclusion of a car service at the choice of the car owner.

Depending on these criteria, a citizen can receive maximum or minimum payments. In rare cases, a vehicle, in accordance with the contract, has the right to be replaced with a similar one in case of unsuitability after an accident.

The main task of a citizen is to collect evidence for the organization to recognize the case as insured.

Deadlines for payment of compensation in case of an insured event

The terms of the contract may vary from company to company. There are 2 ways to receive compensation:

1. In the form of cash.
2. In the form of repairing a damaged car.

The deadlines are calculated from the moment the required list of all papers is provided. A special column in the contract must contain the exact dates for consideration of the application. Often they do not exceed 1 month.

Refusal to compensate for damages

A citizen may voluntarily refuse compensation for damage. In other cases, the insurer’s refusal will be based on the norms of the laws of the Russian Federation. In law enforcement practice, there are cases when the court makes a decision on the illegality of refusal to pay:

1. The car owner lacks registration documents and maintenance.
2. Loss of the original policy.
3. If the driver was another person not specified in the policy.
4. Missing the deadline for filing an application.
5. The list of documents from the car owner was partially transferred.
6. The registration number of the vehicle has been changed.

In other cases, the refusal may be considered lawful.

Citizens are advised to carefully read all the terms of the contract (agreement). After signing, it acquires legal force.

Where can I apply?

Today, all companies that have the appropriate accreditation can provide financial security for movable property. But the guarantors in this matter are:

• "Alfa Insurance";
• "RESO-Garantiya";
• "SOGAZ";
• Ingosstrakh;
• "VSK";
• "Rosgosstrakh";
• Tinkoff;
• "Agreement";
• "RGS".

It is the listed companies that, in the opinion of motorists, have the most acceptable CASCO insurance rules and the most loyal prices. Other companies are not always able to cover the damages of their clients who are at fault for road accidents without conflicts.

Is it possible to buy CASCO insurance in installments?

Based on the legislation of the Russian Federation, we can conclude that issuing a policy on credit is not a prohibited procedure. And in practice, many offices provide this option. But before concluding an agreement, you must carefully read the conditions that the insurance company puts forward. Most often they look like this:

• The motorist pays half of the agreed amount when drawing up the contract, and the remaining debt is distributed over a specific period of time (from 30 to 180 days), during which the client is obliged to pay a fixed portion of the funds, divided into an equal number of shares;
• The entire cost of the questionnaire is divided by the number of months it is valid. Thus, the driver pays the insurance for the entire period of its use, and not in one payment.

At the same time, having applied for CASCO on credit, a person still has the right to count on subrogation from the company. The only disadvantage of this option for purchasing a policy is the overpayment of 3-5% on top of its standard price.

What to do if the repair is done poorly

Often the reason for settling claims under CASCO is poor-quality repairs of vehicles. Subsequently, this may cause the car to lose its value when sold; in addition, it is dangerous for the life of the driver and pedestrians.

In this case, the injured party must submit a written claim to the car service center, and in case of refusal, to the insurer. If the insurance company refuses to carry out repeated repairs, the car owner has the right to go to court.

When, during the appointed examination, any shortcomings or poor-quality performance of work by a car service center are discovered, the CASCO owner can count on a positive resolution of the issue.

According to the court decision, the insured is entitled as compensation to:

• Payment for the services of third-party organizations or persons - independent experts, lawyers, etc.
• Carrying out high-quality work to eliminate the consequences of previous poor-quality repair work.
• Repayment of all expenses spent on eliminating the consequences of poorly performed work.
• Moral compensation (in some cases).

A claim for poor-quality repair work under CASCO can be considered within 2 years after its completion. If the deficiencies are significant, the claim may be considered within 5 years .

Do you need insurance for a car loan?

When selling movable property under leasing, car dealerships are at great risk, since the client can break the car before the debt is fully repaid (UTS), or refuse to make payments altogether due to deteriorating health. Therefore, to minimize risk, agents force citizens to obtain a full insurance package that ensures the financial security of the vehicle and its owner.

It is important to know! But from the point of view of the law, such car insurance is not mandatory when buying a car on credit, which means you can safely refuse it. The only document that the borrower is simply obliged to possess is permission from the bank. All other certificates and papers for CASCO are submitted in the general manner, without any changes.

Stages of obtaining a policy

To obtain a comprehensive policy at any insurance office, a person needs to go through only 7 simple steps:

• Select the most loyal insurance company (when choosing an agency, you need to focus on its user rating, and not on the cost of the contract);
• Prepare a complete list of documents and submit it for verification to company representatives;
• Think over suitable conditions, make a list of risk cases, enter this data into the questionnaire;
• Undergo a technical inspection of the vehicle (during this procedure, experts examine all body and non-assembly elements of the car for damage. Detected defects (chips, scratches, cracks, etc.) will be entered into the protocol, since compensation is not provided for them);
• Fill out and sign the form for providing material protection of movable property;
• Pay the insurance premium;
• Collect the original contract from the representatives of the insurance company.

It is important to know! If you plan to buy CASCO insurance from Alfa-Strakhovanie, RESO-Garantiya, Soglasiya and other offices on an installment plan, then it is recommended to indicate this condition in the third step, when drawing up the application form. Also at this point it is necessary to mention the possible inclusion of a franchise.

Types of voluntary insurance

In the first case, insurance is provided in case of theft and damage. The contract may also include the following clauses:

• visiting the scene of an accident by a specialist;
• collecting the necessary papers, etc.

Partial insurance provides insurance of the car only against possible damage. It will be significantly cheaper in cost. This is especially true in cases where the car does not belong to the category of frequently stolen and is equipped with a good alarm system.

The law in this case means the Federal Law “On compulsory civil liability insurance of vehicle owners” No. 40-FZ of April 25, 2002.

Compensation options

Many motorists are confident that insurance companies are able to compensate for damage only by paying out material funds. But in reality, insurance companies also practice other options for financial protection of their clients:

• Covering estimates for vehicle repairs (money from the office goes directly to the account of the service center chosen by the injured driver);
• Self-repair (after an accident or other situations resulting in damage to the car, the owner of the policy transfers the damaged vehicle into the hands of the company. But its representatives, in turn, carry out a complete restoration of the car and give it back to the owner).

Although most often agencies and drivers are interested in monetary compensation for damage. After all, this way there are much fewer claims on both sides, and conflicts that arise are resolved pre-trial.

Insurance denial

In accordance with the legislation of the Russian Federation, insurance organizations have the right to refuse citizens to sign an agreement for financial protection of their material property without any motivation. But most often the following circumstances contribute to such a decision:

• The person repeatedly created an emergency situation and during the consideration of the case he was found guilty;
• The driver is a novice;
• The vehicle is in very poor condition.

By eliminating all of the above criteria, the chances of successfully completing a comprehensive questionnaire will be clearly greater. And its cost for experienced and careful drivers is usually calculated at a lower rate.

We looked at what a CASCO policy is and how you can get it without unnecessary problems. In conclusion, we would like to add that car owners are no less an authorized party than insurance company agents. Therefore, they need not accept all incoming proposals, but develop the program themselves.

What is CASCO and what laws govern it?

This name means voluntary insurance of vehicles against possible damage and theft. CASCO is in second place after OSAGO (compulsory policy).

Laws on CASCO insurance:

1. Constitution of the Russian Federation.
2. Civil Code of the Russian Federation.
3. Federal laws No. 4015-1FZ and No. 2300-1FZ.
4. Resolution of the Plenum of the Armed Forces of the Russian Federation No. 20 of June 27, 2013.

There were no special changes (amendments) in 2021. Each case is considered individually on the basis of a signed contract (agreement). In the near future, government bodies express a desire to increase penalties in accordance with the Code of Administrative Offenses of the Russian Federation. They will touch upon the issues of providing incorrect information (misleading) to citizens about CASCO insurance and illegal refusals of payments.