What is the difference between OSAGO and CASCO?

It can be difficult to navigate among the large number of services in the insurance market, and the auto industry is no exception. The task is made easier by the fact that there are only two main types of insurance policies - CASCO and OSAGO. Yet many people believe that these are just names for different damage coverages. In fact, there is a big difference between these two types of insurance.

Definitions and scope of insurance

In the event of an accident, she will pay compensation to the other party, freeing you from this, but you will have to repair your vehicle yourself.

There is also a version that this CASCO comes from the Italian casco - “helmet”, “body” - without changing the meaning much, because insurance does not protect a person, but his “road helmet”, that is, the body of the car.

Two insurance policies

Mandatory or not?

In the abbreviation OSAGO itself there is the word “mandatory”, and it is supported by Federal Law No. 40-FZ of April 25, 2002 “On compulsory civil liability insurance of vehicle owners.” P.1. Article 4 as amended in 2019 reads as follows:

“Owners of vehicles are obliged, under the conditions and in the manner established by this Federal Law and in accordance with it, to insure the risk of their civil liability, which may arise as a result of harm to the life, health or property of others when using vehicles.

The obligation to insure civil liability applies to owners of all vehicles used on the territory of the Russian Federation, except for the cases provided for in paragraphs 3 and 4 of this article.”

Reminders about the most important actions after buying a car

If after 10 days from the date of registration of the car the policy is not issued, then according to Art. 12.37 Part 2 of the Code of Administrative Offences, you may be fined in the amount of 500 to 800 rubles. And in the event of an accident due to your fault, you will have to pay for the repair of the cars damaged in it.

Taking out a CASCO policy is always a voluntary decision.

Cost and coverage of insurance

Since OSAGO insures not a car, but personal liability to other road users, its price is affected by:

driving experience;
accident history;
number of insured persons.

Important! If more than one person is included in the policy, the amount is calculated based on the length of service of the participant who received rights later than everyone else. Due to the fact that in the first 2 years after graduating from a driving school, accidents occur more often than experienced drivers, insurance companies apply an increasing coefficient to young drivers (it is also called the KBM or bonus-malus coefficient). That is, the policy becomes more expensive, even if out of four people there is only one newbie. But, after driving for more than 5 years, you can count on a reduction in the cost of insurance - of course, provided that there were no accidents in the previous period.

If the insurance company had to pay amounts under your policy - it doesn’t matter so much whether in the previous period or throughout the history of cooperation - an increase in the BMI cannot be avoided. But how much depends on how often you got into an accident. This encourages motorists to follow traffic rules and drive more carefully.

The price of insurance will also increase if a multi-drive is taken out: the policy protects anyone who ends up driving the specified car. This happens because the insurance company does not have any data about such drivers and needs to cover its own risks.

Under all these conditions, the cost of an MTPL policy is unlikely to exceed 20 thousand rubles (and will not be lower than 5 thousand). Compared to the maximum amount (400 thousand rubles if someone else’s car is damaged and 500 thousand if treatment is required for a driver and/or his passengers injured through your fault) that you can count on in the event of an accident, it looks fair.

The price of CASCO differs significantly from the cost of a compulsory insurance policy. This also follows from its purpose. Since the company protects your interests in any case (and not just if a third party is at fault, as with compulsory motor liability insurance), and these interests are material (as opposed to civil liability), then the range of factors influencing the final amount is noticeably wider:

owner's age;
driving experience;
insurance history;
car model and payment statistics for it;
sum insured;
year of manufacture of the car;
Type of payment for the insurance policy: in installments or in a lump sum.

And if the same rules apply to age, length of service and insurance history as with compulsory motor liability insurance, then with the rest everything is a little more complicated. For example, an increase in price may lead to an unsuccessful choice of model or the long-awaited purchase of a higher class car. The thing is that when making calculations, the insurance agent will take into account the statistics of payments specifically for a specific model and will be based on its market value. For the same reason, protecting a new car will cost more than a used one (according to market law, most complex technical devices lose up to 50% of their value in the first two years of use). But it is worth remembering that most insurance companies do not work with vehicles older than 10, or even 7 years. That is, if a CASCO policy is fundamentally important for you, the optimal solution would be cars aged from 2 to 7 years. Payment in installments can also provide a small bonus, but this always remains at the discretion of the insurance company.

CASCO prices are significantly higher than the cost of compulsory motor liability insurance

As a result, the average price of a CASCO policy is 6-7% of the cost of the car, in rare cases reaching 12%. Moreover, if the document provides protection against theft or complete destruction, the insurance company can reimburse the full cost of the vehicle.

Payment terms

Payment under compulsory motor liability insurance is intended exclusively for the victim of an accident, and the culprit will pay for the repair of his car himself.

In any case, all participants must remain at the scene of the accident until the police arrive and a report is drawn up, according to which the insurance company can restore what happened and convert the damage into money. This obligation is also regulated by Art. 12.27 of the Code of Administrative Offenses of the Russian Federation, violation of which can result in deprivation of rights for a year and a half or arrest for 15 days. It is important not only not to leave the scene of the accident, but also not to move cars and objects that are related to the accident (for example, spare parts or fences).

Payment under CASCO may be refused if:

alcohol or traces of drugs will be found in the driver’s blood - because insurance companies require a responsible attitude to the law;
the car will not have a technical inspection card - because the condition of the vehicle may not actually correspond to what was stated when calculating the market value, which depreciates the value of the contract;
the police were not called immediately after the accident - the same rules apply here as in the case of compulsory motor liability insurance;
a statement was signed stating that there are no claims against other participants in the accident - accordingly, there are no culprits from whom the insurance company could recover damages;
The vehicle has been completely or partially repaired - after this it is usually impossible to correctly assess the damage.

There is also always the possibility of discrepancies in the terms of a particular contract, so it is better to discuss controversial points with an insurance agent before signing the document.

Warning triangle against the background of an accident

Validity periods

The MTPL insurance contract is always concluded for a period of 1 year.

The periods for which you can protect a car under CASCO vary: there are even policies valid for 15 days or 5 years. But the most popular options are 6 months and 1 year.

Protection in case of bankruptcy of the insurer

If the company that insures you under MTPL goes bankrupt and you suffer in an accident, the costs of car repairs will be reimbursed by the Russian Union of Auto Insurers.

In the case of CASCO, the risks are higher: payment will have to be sought in court. The best way to avoid such an unpleasant situation is to responsibly choose an insurance company by studying its reputation and payment history.

Conclusion

OSAGO and CASCO are not interchangeable, but policies that complement each other. To get maximum protection, you should consider signing both contracts.

What is the difference between CASCO and OSAGO?

Insurance companies offer vehicle owners quite a few insurance programs. The main ones are CASCO and OSAGO. Some drivers do not understand the difference between CASCO and OSAGO insurance. Let's try to understand this issue in detail.

What it is

By purchasing an insurance contract, the driver insures himself against situations such as an accident due to negligence, or the driver being found to be at fault for the accident. At the same time, there is no need to pay for the damage to the victim, because the driver has compulsory motor third-party liability insurance called OSAGO. All payments are made by the insurer. The Casco policy implies completely different payments. And now the insurer is obliged to compensate for the damage in any case or send it for repairs at its own expense. It does not matter who is at fault for the accident.

Main features of insurance and differences

The first option is characterized by a 100% voluntary insurance product. If a driver wants to protect himself from unexpected expenses, then he has the right to take out such a policy. It guarantees complete financial protection of the car owner from:

theft;
damage from an accident;
natural damage;
complete loss of the vehicle.

OSAGO is compulsory liability insurance. Drivers of vehicles are required to draw up a contract in order to legally move on the roads of our country. In the event of an accident, the insurer compensates expenses only to the injured party, while the culprit receives absolutely nothing from the insurer.

The voluntary insurance program has a number of advantages:

no matter who is at fault for the accident, the damage will be paid by the insurer in full;
For a whole year, the driver does not have to worry about his vehicle; even theft will be compensated.

But in addition to these significant advantages, CASCO also has disadvantages:

refusal to draw up a contract on the part of the insurer if the car is more than 3 years old;
high cost of contract execution;
mandatory registration of each insurance incident at the traffic police department;
There are often companies that drag their feet on insurance payments.

The main difference between OSAGO and CASCO is the consistency of the price. It is consistently the same everywhere. In this case, it does not matter which insurer the policyholder contacts, the cost of concluding the contract will be the same for everyone. The price of insurance depends on many factors, but all of them are established at the legislative level:

type of vehicle (passenger cars, trucks, special vehicles);
status of the policyholder (private or legal entity);
region of vehicle registration;
driving experience of all persons who will be included in the document;
car age;
engine power;
validity period of the document;
recent accidents;
who was at fault for the accident.

When is it better for a driver to have a CASCA, and when is it better to have MTPL?

If the driver always has compulsory insurance on hand, then it guarantees that it will bear the costs of damage to the other party’s car in the event that the policyholder is found guilty. In this case, payments are made for a certain amount; if the victim’s car is damaged for more than 400 thousand rubles, then the innocent party will receive only this amount and not a penny more. If you are the culprit, then OSAGO will not pay anything at all, but CASCO will cover all expenses.

How to choose a CASCO insurer

If we talk about choosing an insurer for compulsory liability, the law has more or less brought everything back to normal. Today, only those insurance organizations that are members of the Russian Union of Auto Insurers can conclude such contracts. But with Casco everything is a little more complicated. The cost of insurance is quite high to trust the preparation of such a document to dubious companies.

You can often hear about fraud in this area. The driver is happy about the acceptable and significantly low price for the contract, pays the money, and after the accident he cannot find either the company’s employees or the organization itself.

Conclusion

If we talk about the difference in these two insurance products for motorists, then in fact they are completely different programs. CASCO insurance is issued at the driver’s request and covers all expenses in the event of an accident and other incidents, but it also costs an order of magnitude more. OSAGO is compulsory insurance. And it only protects the driver's liability.

It is up to each individual to choose whether to additionally draw up a second voluntary document or not.

What is the difference between MTPL and CASCO – all the nuances of the two types of car insurance

From the article you will learn how MTPL differs from CASCO, what risks are covered by the policies, how compensation is paid, and whether you need insurance at all.

Car insurance includes two options for providing insurance coverage: CASCO and OSAGO.

Many motorists confuse these concepts and do not understand in which cases they can count on compensation, and in which cases they are not entitled to payment at all.

Let's figure out how MTPL differs from CASCO, what each policy covers, and what option the car owner should have.

What is the difference between OSAGO and CASCO?

Let's immediately name the main difference between these two concepts.:

CASCO – vehicle insurance,
OSAGO – motorist liability insurance to other people.

If you want to receive compensation for any damage to your car, compensation for damage associated with its total loss or theft, you need a CASCO policy.

Any damage, even if it was your own fault, will be paid by the insurer under the CASCO policy.

If you only have an MTPL policy, repairs to your car will not be paid for.

"Auto Citizen" will protect you when you become the culprit of an accident and cause damage to third parties.

In this case, the insurer will compensate for the losses caused by you within the established limit.

Voluntary and compulsory insurance

Another important difference between these two types of auto insurance is that having a policy:

CASCO is a voluntary decision of everyone,
All motorists who drive are required to have MTPL.

The insurer has the right to refuse a motorist motor insurance services, but any company that has received a license to conclude MTPL contracts must sell him a motor vehicle insurance policy.

If the insurer you have chosen refuses to issue you a motor third party liability policy, you have the right to complain to the RCA and seek justice.

The cost of a CASCO policy is different for each company, and it depends on many factors. You can find out the price using an online calculator or contacting the manager directly.

OSAGO costs the same everywhere, since the tariff is approved by the Russian government. The legislation also provides for specific insurance conditions and terms for payment of compensation for “automobile insurance.”

Insurance compensation

There is also a difference between CASCO and OSAGO in matters of payment of compensation.

In particular, under an auto hull insurance policy, calculations can be made taking into account depreciation or without it, which depends on the terms of the specific insurance contract.

This condition is specified 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, not exceeding the cost of the car. Payments are made only within this limit.

There are 2 policy options:

with an 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 for those who often get into accidents.

The limit on compulsory motor liability insurance was established by current legislation. It currently amounts to:

400 thousand rubles. in case of property damage,
500 thousand rubles. in case of harm to people.

The period for payment of compensation also varies:

according to the CASCO policy, it depends on the specific terms of the contract,
according to the MTPL policy, it is 30 days, starting from the date of registration of the loss.

Do you need insurance?

We have figured out how CASCO differs from MTPL, now you have the right to decide for yourself whether you need protection for your car.

Remember that the MTPL policy does not cover damage caused to your own car.

Therefore, if you want to receive compensation for losses from damage and theft, then you must take out a CASCO policy.

At the same time, the presence of compulsory motor liability insurance remains a mandatory condition for operating a car, and you may be fined for not having this policy.

The difference between CASCO and OSAGO

Buying a car is only half the battle. Then comes the fun part: applying for insurance. And here insurance companies offer a huge number of options. The two most popular are the purchase of CASCO and MTPL policies. Not all car owners know what these types of insurance are and how each of them works. Therefore, today we will tell you in detail how CASCO differs from OSAGO and in what cases you need to purchase one or another insurance policy.

OSAGO: whether you like it or not, you have to register it!

The MTPL policy is a compulsory type of car insurance. It must be completed by all car owners without exception. This is provided for by the norms of Russian legislation, including the law on compulsory motor liability insurance.

The essence of compulsory motor liability insurance is that it primarily protects liability to third parties. That is, if the car owner gets into an accident and is found guilty, then under the MTPL policy the insurance company will help financially only the injured party. But you will have to repair your own iron horse at your own expense.

CASCO: for those who like to be protected

The CASCO policy is a voluntary type of insurance. That is, no one has the right to force the car owner to register it. CASCO protects against any type of damage that may be caused to the insured car owner's vehicle (fire, theft, flood, etc.).

That is, if a car owner gets into an accident and is found guilty, then under a CASCO policy, he will be able to receive reimbursement for the costs associated with restoring his own car. But the insurer does not take responsibility for damage caused to a third party under CASCO insurance.

5 main differences between OSAGO and CASCO

What is the fundamental difference between CASCO and OSAGO? Let us highlight five main differences that reflect the essence of these two types of insurance policies:

Insurance form . The motor insurance policy is mandatory for every car owner, and CASCO insurance is of a goodwill nature. If the car title is not issued, you can run into penalties, and if CASCO is not issued, nothing will happen to the car owner.

Price matters! The cost of an MTPL policy is set based on tariffs approved by the state. For CASCO insurance, each insurance company itself determines the amount of these tariffs based on the market and economic situation, as well as the region of presence.

Who determines the amount of damage? Under the KAKO policy, damage can be determined by any representative of the insurer. According to compulsory motor liability insurance, this procedure is more stringent and requires an independent expert assessment of a car damaged in an accident.

What about refunds? The amount of auto insurance payments is clearly defined for each situation. For CASCO, there are no such clear boundaries, but the rule is that the total amount of payments should not exceed the total cost of the insured car.

Insurance company bankruptcy. If the insurance company turns out to be bankrupt, then under the MTPL policy the interests of the car owner will be protected by the Russian Union of Auto Insurers (RUA). It is this organization that will assume all the responsibilities of the insurer, which cannot answer to its clients. Under the CASCO policy, in a similar situation, RSA is not liable, so the car owner can protect his rights only in court.

What is better CASCO or OSAGO?

It all depends on what goal the car owner pursues when taking out insurance. The purpose of compulsory motor liability insurance is to cover damage to persons who are found innocent in an accident. This is the most important social mechanism, guarded by the state.

But CASCO is a mechanism for protecting personal property rights. That is, regardless of what damage was caused to a third party, the insurance company will pay for car repairs only to the insured person.

The best option is when both insurance policies are taken out. In this way, the car owner protects both his own property interests and the interests of third parties.

Now you know what is the significant difference between CASCO and OSAGO. Therefore, before you go to the office of the insurance company, think about whether you really need such a type of insurance as CASCO. If you answer yes to this question, then, without hesitation, take out both insurances. This is the best option for protecting yourself and your vehicle.

Drive carefully and take care of yourself on the roads!

Video on the topic

Differences between CASCO and OSAGO: which is better for the car owner

The article explains the difference between CASCO and OSAGO. This is important from the point of view of complying with the law and protecting one’s own interests.

There is a big difference between CASCO and OSAGO. These types of insurance coverage cannot be called interchangeable. You should choose which type of insurance you need, taking into account what is better in case of an accident - CASCO or OSAGO. After all, both policies protect the interests of the motorist, but in different ways.

Basic Concepts

When deciding whether to choose CASCO or MTPL, they clarify why they are needed and how they are beneficial to the vehicle owner. It is also important to know when to apply for benefits for each of your car insurance policies. There are also differences between CASCO and MTPL in terms of the insurance object.

CASCO and OSAGO - what is the difference:

CASCO – insurance of the vehicle itself against theft, destruction or damage;
With compulsory motor liability insurance, the car owner's civil liability is insured.

Compulsory car insurance is MTPL. A motorist cannot have a CASCO insurance policy or a civil liability insurance policy. Everyone should have MTPL. According to the CASCO law, it is mandatory only for loans when the car is accepted as collateral, for example, with a car loan. In all other cases, the purchase of this type of insurance protection is determined by the personal desire of the owner.

Policy price

Let's figure out what is cheaper to issue for a car - CASCO or OSAGO. The difference lies in the fact that a CASCO policy will cost an order of magnitude more. The insurer determines the cost of the service independently. Typically, 5-10% of the cost of the car is paid for such an agreement. Here it is important to look for where it is better to do CASCO insurance, where the conditions are more favorable. The insurer has the right to refuse to issue it.

All insurance companies are required to offer MTPL, and they must sell such policies to everyone who applies. The cost of this policy is calculated according to the tariff range set by the Central Bank of the Russian Federation. Insurers have the right to choose any value within the specified limits. For 2019, the basic tariff for car owners - individuals and individual entrepreneurs for vehicles of categories B and BE is set at 2,746 - 4,942 rubles. When calculating, the base tariff is adjusted taking into account the system of coefficients. Their values are regulated at the legislative level.

Refund

Everything regarding payments under CASCO is determined by the terms of the contract. It describes how and when compensation will be provided, what constitutes an insured event, whether wear and tear of parts is taken into account, and mentions exceptions and limitations. You need to study the application very carefully. Most often, this is where the calculation scheme and applied coefficients are described. Payments for this type of protection are always received by the car owner who purchased the policy. The amount of compensation is limited to the cost of the car or the sum insured in the CASCO agreement.

With compulsory motor liability insurance, insurance is paid to victims. The at-fault driver will receive nothing. Material damage is compensated only taking into account depreciation and is limited to 400,000 rubles. Damage to health is compensated in the amount of up to 500,000 rubles. Compensation is provided within 30 days from the date of registration of the incurred losses.

Both under MTPL and CASCO, compensation is possible both in money, which, after assessing the damage, will be transferred to the account of the recipient of payments, and by sending the car for repair to an authorized service station. The car owner indicates in the application how it would be more convenient for him to receive compensation - in cash or in kind. But the final decision on how the car will be restored, according to the law, remains with the insurer.

If the driver is at fault in an accident, then the MTPL policy is always used. Thanks to this agreement, victims will receive compensation. But to repair the car of the culprit, CASCO is already required.

If the policyholder is a victim, then it is important to consider:

Does the culprit have compulsory motor liability insurance? In the absence of a policy, the matter may drag on;
what is the magnitude of the damage, will the compulsory type of insurance coverage cover it;
Features of the conditions of voluntary car insurance.

Applying for payments under an insurance contract increases its cost during renewal. This means that in case of minor damage, it is more profitable for the victim to apply for compensation under OSAGO. Then this insurance will become more expensive for the culprit, but for the victim, insurance costs in the next period will not increase.

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.

Summary table of differences between CASCO and OSAGO

We provide a table that briefly describes how CASCO differs from OSAGO.