From the article you will learn how OSAGO differs from CASCO, what risks cover policies, how compensation payments are made, do you need insurance at all
Auto insurance includes two options for providing insurance coverage: CASCO and CTP.
Many motorists confuse these concepts and do not understand in what cases they can count on compensation, and in which cases they are not supposed to be paid.
Let’s figure out how OSAGO differs from CASCO, which covers each of the policies, which option the car owner should have.
What is the difference between OSAGO and CASCO
Immediately call the main difference between these two concepts :
- CASCO – vehicle insurance,
- MTPL – motorist liability insurance to other people.
If you want to receive compensation for any damage to your car, to compensate for the damage associated with its total loss or theft, you need a CASCO policy.
Any damage, even if it happened through your own fault, will be paid by the insurer under the CASCO policy.
If you have in your hands only the CTP policy, the repair of your car will not be paid.
“Auto Citizen” will protect you when you become the culprit of the accident and cause damage to third parties.
In this case, the insurer will indemnify you for losses incurred within the established limit.
Voluntary and compulsory insurance
Another important difference between these two types of car insurance is that the presence of a policy:
- CASCO is a voluntary decision of everyone,
- CTP is required to have all motorists sitting behind the wheel.
The insurer has the right to refuse motor hull insurance services to a motorist, but any company that has received a license to enter into motor third-party liability insurance contracts must sell it a motor insurance policy.
If the insurer of your choice refuses you to apply for a motor civil liability policy, you have the right to complain to the PCA and achieve justice.
The cost of the CASCO policy in each company is different, and it depends on many factors. You can find out the price through an online calculator or by contacting the manager directly.
MTPL stands the same everywhere, as the tariff is approved by the Russian government. The legislation also provides for specific insurance conditions and terms for payment of compensation for “motor citizens”.
There is a difference between CASCO and compulsory motor liability insurance in matters of compensation.
In particular, according to the motor hull policy, the calculation can be made taking into account depreciation or without it, which depends on the conditions of a particular insurance contract.
This condition is negotiated separately, and the policyholder has the right to choose any option convenient for him.
As for compensation under compulsory motor liability insurance, the law provides for payments only taking into account depreciation.
With CASCO insurance, a certain sum insured is established that does not exceed the cost of the car. Payments are made only within this limit.
There are 2 options for policies:
- with the aggregate amount , which each time decreases by the amount of compensation paid;
- with a non-aggregate amount , which does not depend on the amount of money paid.
The second insurance option is more expensive, but it is more interesting to those who often get into an accident.
The MTPL limit was established by applicable law. He is currently:
- 400 thousand rubles in case of damage to property,
- 500 thousand rubles in case of harm to people.
The term for payment of compensation is also different:
- according to the CASCO policy, it depends on the specific conditions of the contract,
- CTP insurance policy is 30 days starting from the date of loss registration.
Do I need insurance
We figured out how CASCO differs from CTP, now you yourself have the right to decide whether you need protection for your car.
Remember that the MTPL policy does not cover the damage caused to your own car.
Therefore, if you want to receive compensation for losses from damage and theft, then you need to issue a CASCO policy without fail.
At the same time, the presence of compulsory motor third-party liability insurance remains a prerequisite for operating a car, and you may be fined for the absence of this policy.