In the article we will figure out whether CASCO is necessary. How is this service calculated correctly and what affects the cost of the policy?
More and more Russian citizens understand that car insurance is such an important service, using which it is possible to prevent a huge number of unpleasant consequences of driving on the roads. Everyone wants to secure their future. Confidence in insurance companies is gradually growing, and with this, the number of insured cars increases every year. The most popular insurance today is CASCO. Whether it is necessary to draw up it, we will tell below.
Description
The CASCO description needs to start with the fact that this product is designed to protect the property from all kinds of risks and no matter what it is. However, most often, CASCO means car insurance. There are two main risks for which this insurance is purchased to neutralize:
- Damage - damage to the car as a result of an accident, the fall of foreign objects on it, as well as loss as a result of the action of vandals, etc. Such risks mainly determine the cost of the insurance policy, since such cases occur most.
- Hijacking or theft - the policyholder will be paid only if his car becomes a thief. In fact, real hijackings are rarely observed today, however, this type of insurance is very popular.
Usually, CASCO is understood as the combination of these two risks, but many insurance companies sell them separately. Thus, almost all insurers can insure a car only at the risk of damage, however, a policy with a risk of theft or theft only exists in rare cases.
Customers often ask about whether CASCO is necessary for a car.
What is the point?
Simply put, the essence of this insurance is that the client pays the money, and in return the insurance company promises him to pay a certain amount in case of an insured event. Two points to consider here:
- A certain amount can be presented in cash or in material terms (for example, if the client chooses the option “receive payment by repair”). In the latter case, everything is clear - the car must be restored to the form in which it was before the accident. In the first case, it is not so simple - it is possible that the amount of money that the client receives from the insurer will not suit him, for example, it will not be enough to repair the car. This happens because the insurance company and the client have different estimates of the cost of car repairs.
- Insured event - there is also a possible misunderstanding between the insurance company and the client regarding what exactly can be considered as such.
The type of vehicle that is covered by CASCO insurance is any. You can insure not only a car, but also another means of transportation.
To understand whether a CASCO policy is needed, we will find out what documents will be required for registration.
Documents
In standard cases, the following documentation is required for registration:
- an application that is prepared in free form or in the form established by a particular insurance company;
- passport of a Russian citizen or other document that allows to identify his personality;
- certificate of registration of a legal entity - in cases when a CASCO policy is issued for a motor vehicle owned by the organization;
- car passport - Title;
- registration documents: contract of sale, certificate of registration of the vehicle, account certificate, all kinds of customs documents, etc.
In fact, the list of required securities is established by the insurance company in each individual case. Moreover, the above list is standard.
Is it necessary to draw up hull insurance and how to do it?
Clearance process
To date, the standard algorithm of this procedure includes:
- preparation of all necessary documents in a particular case - this is the title deed and passport of the car owner, as well as driver’s licenses of all persons authorized to drive it;
- then you need to contact the selected insurance company to conclude a contract - for this it is necessary to provide a car for inspection;
- execution of a personal offer for a particular client - it is important to familiarize yourself with it before signing the contract;
- insurance premium payment;
- issuance of the CASCO policy, insurance rules and receipt of payment to the client.
CASCO basic rate
Many policyholders are concerned about the most relevant tariff rates for hull insurance this year. Such a policy is voluntary, because motorists want to purchase it at the most favorable cost, but at the same time have more guarantees for compensation in the event of an insured event.
The last time tariffs changed in 2017, however, today they remain very relevant. The calculation of the coefficient can be preliminarily performed using the online calculator in order to know the exact amount for a particular insured event.
The last time tariffs changed in 2017, however, today they remain very relevant. The calculation of the coefficient can be preliminarily performed using the online calculator in order to know the exact amount for a particular insured event.
What affects the price?
Let us highlight below some of the most important coefficients in CASCO, which are used in almost all organizations:
- TBU - is a basic coefficient.
- Ki / Gu - the year of manufacture and the degree of wear of the car.
- Kf - franchise.
- Tx - the possibility of theft of a car.
- Kvs - the experience and age of the driver.
- Cr - installment plan.
- Kpo - the presence of an anti-theft system.
Calculation formula:
CASCO = (Tbu * Ki / gv * Kvs * Kf * Kr) + (Th * Ki / gv * Kpo * Kr)
Thus, the approximate amount of the policy is calculated. To get the exact number, it is better to contact the Online Calculator service from the official website of the insurance company or drive up to the office.
Is CASCO insurance necessary, it is important to find out in advance.
Rules for calculating the coefficient
Comprehensive auto insurance is calculated quickly and without the use of complex formulas. There are two ways to calculate: manually or online. The latter is especially popular. It is really very convenient. The user just needs to enter into the database all the necessary information, and the program will calculate on its own.
So, is CASCO necessary? What is its advantage?
Positive aspects of hull insurance
Since this type of insurance is voluntary, everyone decides for himself whether he needs it or not. Among the main advantages include:
- the possibility of reducing material costs with significant damage to the vehicle;
- psychological security from trouble.
Is it always necessary to do hull insurance? What are the disadvantages of this type of insurance?
Negative qualities
Its disadvantages are:
- high price of an annual insurance policy;
- real risk of receiving insurance benefits in a smaller amount than the damage incurred;
- significant loss of time in the application and further settlement of the insured event.
Once using this type of car insurance, many customers are wondering if CASCO is needed for the second year? This is a purely individual preference for each client. If nothing happened to the car last year, you should not hope that the owner of the vehicle will be lucky next year. There are different situations, and no one is safe from them, except for the owners of CASCO policies.
How is the coefficient formed?
The calculation of the company's risks and the formation of CASCO ratios are carried out by insurance actuaries. These employees regularly monitor loss statistics, both within the company and in the whole service market. Insurance actuaries often use official data from government agencies. At the same time, they take into account the statistical parameters of the accident and their participants. In addition, periodic hijacking is being conducted. If the company’s policy makers find out that several cars of the same model were stolen in a short period of time, it will be almost impossible to insure an identical car in this organization.
Based on the information received, actuaries using specialized mathematical formulas calculate the probability of a particular insurance event.
In addition, there is another important point. Leading car insurers have recently seriously considered installing telemetry systems. This equipment helps to track many parameters, including the speed of the car and the driving style of an individual. Today, individual companies are already using telemetry to measure insurance risk. The principle of determining the tariff for this insurance is quite simple. When applying for an insurance policy, the car owner installs telemetry equipment on his car, which is recommended by the insurer, and receives a substantial discount for this. In the future, the tariff is adjusted depending on the driving style. Accurate drivers are entitled to rely on some discounts, but violators of traffic rules will have to pay more for the insurance policy.
We examined whether CASCO is necessary for a car. But to issue it or not, each owner of the car will decide for himself.