Car insurance - how to insure a car and how much car insurance costs + TOP-9 insurance companies where you can calculate and make car insurance via the Internet (online)

Good afternoon, dear readers of the Rich Pro financial magazine! Today we’ll talk about car insurancenamely, what it is, what types of car insurance exist, how to calculate and arrange car insurance online and where it is possible to insure your car through the Internet.

According to official statistics in Russia, more than 44 million units of passenger vehicles that become participants in approximately two hundred thousand accidents per year, in which not only property objects but also people are affected. It is for the protection of the health and property of road accident participants that exists car insurance.

From this article you will learn:

• What is car insurance and what is it for;
• What are the main types and categories of car insurance exist;
• How car insurance is carried out and how to do it online without leaving your home;
• How much car insurance will cost and how you can save on the cost of the policy, as well as which insurance companies enjoy the greatest trust of customers.

This article will be useful for both beginners and experienced car owners who wish to take out an insurance policy with the most favorable conditions, the greatest risk coverage and the lowest cost of the policy.

Want to learn how to protect yourself from costs, while investing a minimum amount? Read about it in our article!

About car insurance: what types of car insurance are there, how to insure a car via the Internet, how much car insurance costs - we will tell in this issue

1. What is car insurance and why do I need car insurance? 📄🚗

In legal terms,

Car insurancerepresents an agreement on reimbursement by an insurance company for losses incurred by a car owner as a result of a traffic accident, theft of a vehicle or its breakdown.

In our country, as in most economically developed countries, liability insurance for car owners is mandatory, which covers the costs of repairs or treatment everyone who suffered through the fault of the insured motorist. You can’t even drive without such a policy.

Violation of this rule may threaten the appointment a fine or even driving license withdrawal. Mandatory liability insurance for car owners and drivers can be called the most effective way to resolve disputes regarding compensation for damage resulting from an accident.

However, the personal loss of the perpetrator of the accident is not an insured event of the compulsory insurance package, for this there are other types of this service provided on a voluntary basis.

If the car owner has issued voluntary insurance policy on your transport and protect your health, then for him it does not matter who is guilty of the accident, and can also be calm in case of theft of the car or other methods of damage.

If, however, the driver or the owner of the car is confident in his safety or simply does not want to spend the extra money, he has the right not to draw up such a policy, at the risk of incurring losses from his own budget, in case of damage to the vehicle or to himself, which are not covered by the compulsory insurance policy .

Accordingly, we can distinguish 2 (two) types of car insurance: voluntary and obligatory. And anyone with enough experience, the car owner will not deny the importance of both types of insurance, since the situations on the road are different and it is impossible to prevent all possible scenarios, and even more so to protect the car from intruders.

We can distinguish the following tasks solved by car insurance services:

• protection of property rights of car owners;
• increased road safety;
• increasing the speed of resolving conflicts arising between participants in accidents;
• reducing the risk to the health and life of road users.

It goes without saying that having a driver’s insurance policy does not in itself exclude an accident, but it gives psychological confidence to road users in their safety and guarantees for compensation for possible damage.

What types of car insurance are there: CASCO, CTP, DSAGO, accident insurance, a green card - more on this later

2. Car insurance - TOP-5 types of car insurance 📊🚙

Consider the most popular and current types of car insurance.

1) CASCO

The term CASCO is established at the international level and protects the property of the car owner from damage, theft or complete destruction within a certain amount established by the insurance contract.

The parameters of the contract may vary among themselves, depending on the insurance company, and provide for a different set of cases to be reimbursed.

Advantages of CASCO insurance:

• Compensation for the entire period of the policy, with a one-time payment of its value;
• compensation for damage, regardless of the culprit of the accident;
• full coverage of the risks of damage or loss of property.

However, there are disadvantages of such insurance:

• the relatively high price of the CASCO policy;
• restrictions on the age of the car (usually cars not older than five years are insured).

Details about CASCO insurance, we wrote in a separate article.

It is worth noting that, unlike CTP insurance, this policy has no restrictions on the payment of insurance amounts, the maximum value of which is determined by the market value of the car at the time of registration of the policy.

2) CTP

The purchase of an insurance policy in our country is mandatory, its presence is an integral part of any driver’s auto documents, because it can be requested for presentation by the traffic police.

This type of car insurance provides compensation for damage to property or health of those injured in an accident that occurred due to the fault of the insured.

Only basic OSAGO tariffs are established by law, and insurers themselves have the right to reduce the cost due to discounts or, conversely, increase it due to the execution of additional services or increased risk.

In addition, the law establishes a limit for the maximum payment under the CTP insurance policy (cash payments):

• 400 thousand rubles, in case of compensation for property damage (if after the accident the car is completely destroyed or the cost of repair exceeds 400 thousand rubles);
• 600 thousand rubles, in compensation for damage caused to the life or health of the victim.

In more detail about the MTPL insurance policy, how much it costs and how to calculate, we wrote in our last issue.

3) DOSAGO

This type of insurance can be designated as addition to CTP, but not every insurance company can offer it.

The DSAGO policy is an additional type of insurance that allows you to recover the amount of damage that exceeds the coverage of the CTP insurance policy.

Due to the fact that OSAGO has restrictions on the amount of payment, this type of insurance can be very useful, because in case of insufficient payment, the victim can claim the missing amount from the culprit through the court, which can cause him significant losses.

From March 17, 2017 amendments to the law were adopted, where it is now possible to receive monetary compensation if, after an accident, the car is completely destroyed or the repair cost exceeds 400 thousand rubles.

In other other cases, insurance companies will pay for the repair of their customers' vehicles.

The DSAGO policy is only possible in conjunction with basic compulsory insurance and not applicable separately.

Due to the fact that the risk of using the DSAGO policy for its intended purpose is minimal, its price is usually relatively low.

4) Accident insurance

Due to the fact that in accidents often the damage falls not only on property, but also on human health, this type of insurance is also very relevant.

When applying for this type of policy, insured events are injuries of a high degree of severity, injury or damage, leading to temporary or permanent disability or even death (in this case, the payment will be received by the victim’s family or the person indicated in the contract as the beneficiary).

5) Green card

This policy is used when leaving for the Schengen visa area and is the European version of the compulsory insurance of car owners. Without a “green card” it will not even come out to cross the border.

You can apply for such insurance at most insurance companies and even at a customs post.

If you intend to travel abroad, we recommend that you read the article - "Travel Insurance Abroad"

The main categories of car insurance: compensation for damage to persons, protection of the car from theft and other damage, life and health insurance

3. 3 categories of car insurance 📋

In addition to the above, various types of car insurance can be grouped into the following categories:

Category 1. Compensation for damage to persons affected by the fault of the policyholder

This category of car insurance includes policies CTP and DSAGO.

In the first case, insurance is compulsory and represents payments to victims of an accident for compensation for damage to a car or health.

From March 17, 2017 the authorities decided that insurance companies would pay for the repair of vehicles of their customers, and not pay a sum of money for car repairs.

Since OSAGO payments are limited in amount, in cases of exceeding them, the voluntary supplementary liability insurance policy of car owners - DSAGO - comes into force, which allows you to compensate for damages above the maximum amount of payments for the compulsory insurance policy and at the same time not to incur extra costs from your own budget.

Category 2. Protection of your own car from theft or other damage

The costs associated with the restoration of your own car after an accident, its theft or other types of damage are covered by the CASCO policy. It is purchased on a voluntary basis and allows the policyholder to protect themselves from unplanned expenses.

In addition, the purchase of a CASCO policy is a prerequisite for obtaining a car loan and allows the bank to protect itself from the risk of losing a mortgage guarantee for the return of its money. About where and how to get a car loan without CASCO, read a separate article in our magazine.

Category 3. Life and Health Insurance

Any driver can additionally insure their health in case of damage in an accident. If the driver cares not only about his car, protecting his health, but also understands the responsibility for the life and health of his companions, he can take out additional insurance to protect them.

Then, in the event of an accident, passengers of the vehicle who have received injuries and damage will receive compensation, and in case of their death, payments will be sent to their family members.

Table. Types and categories of car insurance

The table below is broken down by type of insurance and grouped by car insurance category.

How to insure a car - step-by-step instructions for obtaining insurance for a car

4. How to apply for car insurance in 6 steps - instructions for obtaining an insurance policy for a car 📝

Every car owner wants to purchase as cheap as possible, but high-quality insurance for your car, covering as many of the risks as possible.

Policy registration in the first insurance company that comes across is a categorically incorrect approach, which can lead to unnecessary overpayments, as well as other problems associated with resolving contentious issues.

Our country has long developed a system of acquiring insurance policies via the Internet, with which you can significantly save time and money. this way provides insurance without unnecessary Sales office visits bursts and overpayments to insurance agents.

Since October 2015 it became possible to issue fully electronic CTP insurance policies recorded in the databases of law enforcement agencies and checked by the traffic police using special equipment online. In addition, you can order home delivery of the CTP insurance policy.

6 easy steps to take out car insurance

To do this, you need to perform a simple algorithm of actions.

Step number 1. Choosing an Insurance Company

The importance of this step is due to the reliability of the insurance partner and determines how quickly and how high-quality work will be done to pay compensation in the event of an insured event.

Honest insurance companies, faithfully fulfilling their duties, will never intentionally underestimate the amount of insurance payments and will do everything to take into account the wishes of the client. At the same time, dubious firms may find various excuses for refusing payments or try to reduce them.

You can define the following selection criteria for an insurer:

• his reputation;
• financial sustainability;
• volumes of insurance payments;
• branch network;
• independent assessment of rating agencies;
• reviews.

Before concluding an insurance contract, it is necessary to check the validity of the license for the provision of insurance services.

Step number 2. Calculation of the cost of car insurance

The range of insurance tariffs for insurance is very wide. According to CTP, each insurance company can both increase the price and lower it, and for the types of voluntary insurance there is no unified tariffing at all.

To avoid errors in the self-calculation of the cost of the policy, which depends on many factors, it is easiest to use special services and insurance calculators on the websites of various insurance companies.

To calculate the insurance for the car, you will need to prepare a certificate of registration of the vehicle and a driver's license.

There are many services and online calculators where you can not only calculate the approximate cost of insurance and compare the offers of several companies at once, but also directly insure the car online (although the cost of the policy from intermediaries may differ from the price of “officials”).

In this case, you must perform the following steps:

• choose type of insurance;
• choose companies to compare;
• determine the most profitable option;
• issue an online policy or order home delivery.

Step number 3. Providing the necessary documents

Basically, a standard list of documents is required for car insurance:

• identification;
• driver's license;
• technical passport for the car;
• registration certificate;
• diagnostic card;
• if necessary, a power of attorney, if the policyholder is not the owner of the car.

Errors in the calculations are excluded, since all data is checked through the PCA database.

Step number 4. Filling out the application and signing the contract

Before signing the contract, it is necessary to study it in detail, in order to avoid further surprises.

Step number 5. Insurance policy payment

In the case of an online transaction, you can pay by bank transfer. When you register through the sales office, you can pay in cash.

Required you need to receive and save a document confirming the fact of payment (receipt)

Step number 6. Getting insurance

These policies are made on specialized forms and are usually well protected against counterfeiting.

Electronic policies must be entered into the PCA database.

How much is car insurance - the main parameters and factors from which the cost of the insurance policy is determined

5. How much is car insurance - 5 factors that affect the cost of a motor insurance policy 💰

To determine how much car insurance costs, you need to understand that the price of the insurance policy is primarily affected by it view, i.e. the number of insured events covered, respectively, the more of them, the more expensive the policy.

No less important for the cost of insurance and policyholder's region of residence, in large cities, the risk of accidents is higher, which means insurance is more expensive, and having a regional residence permit can save a lot of money.

Indicators such as policyholder age and driving experience driving a car also have a direct impact on the cost of the insurance policy, as well as the technical characteristics of the car.

Such factors need to be considered in more detail:

1) Make and model of the vehicle

The influence of this factor is due to the difference in the price of car repairs and the degree of popularity among car thieves.

The size and power of the car engine also play an important role in determining the cost of insurance. Depending on the amount of horsepower, a coefficient is determined that affects the price, it varies within from 0.6 (for small cars) up to 1.6 (for cars with maximum power).

2) Anti-theft system

Depending on the alarm model, its reliability is determined. Insurance companies closely monitor data based on hijacking statistics and create special lists of anti-theft security systems that can significantly reduce the risks of vehicle theft, and, consequently, the cost of the insurance policy.

3) Vehicle age

The price of insurance increases in accordance with the aging of the vehicle, as this increases the risk of malfunctions and possible accidents because of this. However, the age of the car is taken into account in aggregate with indicators such as the market value of the car and its current technical condition.

When buying a used car, you need to pay attention to the fact that many insurance companies do not work with cars at all, older than 8-10 years.

4) Car market value

When insurance is issued for a new car, its value is determined based on the price specified in the contract of sale. In the future, the price is considered, based on the current market situation and the condition of the car.

It is more beneficial for the insured to indicate the minimum price in order to save on the cost of the insurance policy, however, it should be borne in mind that if this indicator is underestimated, in the event of an accident, the insurance payment received may not be enough.

5) Insured driving experience

Driving experience directly affects the risk of getting into an accident. Experienced drivers become involved in accidents much less often than newcomers to driving, respectively, and they pay less for insurance.

In addition, insurance companies take into account the number of violations in the past period and the presence of accidents. Drivers traveling for a year without an accident receive a discount on the next insurance policy in the amount of 5%.

For clarity, the listed items can be presented in table form.

Table. The main factors on which the cost of the insurance policy depends

The table lists the main factors and criteria on which the cost of car insurance depends.

6. Where to insure a car on favorable terms - TOP-9 insurance companies where you can make car insurance cheap 📑

The Russian insurance market is represented by a number of companies that offer a wide variety of various services in the field of car insurance and a wide range of tariffs. However, each company differs in its capabilities and reliability.

You can distinguish TOP-9 (eight) of the largest and most popular insurance companies.

1) Rosgosstrakh

Undoubtedly, the most famous and largest insurance company in our country. She has been working on the Russian market for more than 95years and has over 3 thousand branches throughout Russia.

At this stage, Rosgosstrakh is actively developing online car insurance, as well as the entire range of insurance services. The specialists of this organization even provide psychological support to victims of accidents through a 24-hour hotline.

In the field of car insurance, Rosgosstrakh during this period offers the following services:

• CTP (According to statistics, more than a third of compulsory car insurance policies are issued by this insurer).
• CASCO (Full coverage of damage to the vehicle of the insured, up to its evacuation from the accident site)
• Anti-crisis CASCO (Protecting your own car from great damage, at a price 70% cheaper than the basic voluntary insurance policy. At the same time, the insurer has the opportunity to deal with minor damage once during the entire insurance period).
• Green card (a prerequisite for leaving your car abroad the Russian Federation).

2) Intach insurance

This is a relatively young company, operating since 2008, but already leading the so-called popular ratings in terms of customer confidence, their reviews and, to a greater extent, in response speed in insurance cases.

Since this insurance company has long cooperated with one of the largest insurance holding companies in the UK, RSA Group, it uses advanced European technologies in its work, such as a unique system "quick response"(Fast Track), when in most insurance cases a referral for repair is issued immediately after a call from the scene of an accident and does not require a visit to the company's office.

In addition, the company provides round-the-clock customer support and registration of insurance policies via the Internet.

3) Reso guarantee

An insurance company operating since 1991, which has the highest reliability rating and enjoys a high degree of trust among customers. RESO guarantee offers its customers more than 100 types of insurance services, including car insurance, which is a priority for the company.

RESO has one of the largest networks of branches in Russia and the CIS countries, in the territory of which more than 20 thousand insurance agents of the company work. She has repeatedly won the prize "National Brand"ranking first among insurers.

In addition to compulsory car insurance, this company offers voluntary additional motor insurance services, such as CASCO, DSAGO, etc. Moreover, according to the data of the Central Bank of the Russian Federation, this insurance company occupies a leading position in Russia in terms of CASCO by providing large discounts to its customers in 2015. during the initial registration of the policy and further preferences in the form of round-the-clock support, discounts on the evacuation of vehicles, registration of directions for repairs without visiting the office, as well as payment of fears compensation without any reference, if it does not exceed 5% of the total insurance amount.

4) Ingosstrakh

This is one of the oldest insurance companies in our country. Ingosstrakh began its activities in the USSR in November 1947, successively opening branches and subsidiaries around the world, since representing the interests of the country abroad was, initially, a priority. Since 2004, the Ingo International Insurance Group was formed, which includes the company.

Ingosstrakh is active in the Russian market, including in the field of car insurance and enjoys the trust of customers, having the opportunity to provide a variety of services at the highest level.

So, among them the following services can be distinguished:

1. CTP

The policy is in accordance with the law, but it is possible to expand it. Service "Auto protection", allowing to protect owners of cars under five years from losses associated with the difference in the real cost of repairs and payments, taking into account the wear and tear of the car. In this case, the repair is carried out by an authorized service center and all costs are borne by the policyholder. The" Maintenance Guarantee "service reimburses the costs to troubleshoot identified during the technical inspection of cars no older than ten years.

2. CASCO

To the standard insurance policy CASCO Ingosstrakh offers 6 types of additional services for insurance of risks that are not included in the insurance policy, such as insurance against breakdowns on the road, against loss of value during complete destruction or theft, from after-warranty breakdowns, insurance of the anti-theft system, tires and wheels and even a smart insurance system that takes into account the way you drive and use the car.

3. DSAGO

The policy is valid throughout the country.

4. Green card

Provides liability insurance for the insured traveling outside the Russian Federation.

5) Renaissance insurance

This company annually receives high marks from rating agencies and is popular among policyholders. Auto insurance is one of the main activities of the company. In terms of insurance payments and sales of policies, the Renaissance group is one of the ten largest insurance companies in our country. Operating since 1997, this insurer is a rapidly growing and dynamically developing company.

MTPL and CASCO policies can be purchased online, having received the optimal set of insurance claims, compensation and services that will facilitate the application for payment. A wide network of offices, in turn, will provide timely and most convenient solution to controversial issues.

6) Alpha Insurance

One of the largest Russian insurance companies, offering more than 100 types of insurance products and having over 270 representative offices in various regions of the country. It has been operating since 1992 and has the highest rating for reliability rating in Russia and stable performance, according to international estimates.

In this company you can apply for CASCO, CTP and Green Card policies on the most favorable terms. Sales are conducted both in numerous offices, and through online services.

Distinctive features are products such as "Very smart hull", providing the right to a good discount when applying for a policy (35%) for tidy drivers, which is monitored by a special device that the company will install at its own expense or service "Keys on the hood"for VIP clients, providing an immediate departure of the emergency commissioner directly to the accident site, which completely accompanies the execution of all documents and transportation of the injured car for repair, that is, the policyholder is completely exempt from all problems associated with the registration of an accident.

7) Tinkoff - car insurance

Tinkoff Insurance was founded in 2013, and the bank itself even earlier. A rapidly developing Internet bank has a development potential and offers a wide range of services.

Tinkoff - car insurance offers to take out car insurance online. To insure a car via the Internet, you need to go to the company's website, use a calculator and follow the steps indicated for car insurance.

8) VTB Insurance

The insurance company has been represented on the Russian market since 2000 and is part of the VTB Group, having the highest ratings from rating agencies.

Despite the fact that the company is included in TOP 10 the largest insurers for voluntary types of insurance, from December 29, 2016, the Central Bank of Russia suspended VTB's activities in the field of issuing OSAGO policies.

As part of the policy, CASCO VTB Insurance provides 3 (three) tariffs: Light, Optimal and Maximum. Among the additional services, even at a minimum rate, round-the-clock customer support and evacuation from the scene of an accident are provided.

The average tariff offers additional support for the emergency commissioner, while the maximum tariff will provide technical assistance on the road.

9) VSK

The company has been operating since 1992 and has firmly established itself in the Russian market, having the highest ratings from rating agencies and even was noted twice with gratitude from the President of the Russian Federation. VSK Insurance House has over 400 offices throughout the country and provides a wide range of insurance services.

The following types are presented for car owners:

CASCO

5 basic tariffs are offered: classic, autometrics (savings of up to 25% are ensured by a special application installed on a smartphone that monitors driving safety), confident (30% savings with full coverage of damage only in the initial insurance case), compact (75% can be saved if insured events occur frequently, but only if the insured is innocent) compact plus (70% savings and full coverage of catastrophic damage).

And also 2 (two) additional products: technical assistance on the road and GAP (covering the difference between the initial value of the car and its current market price, taking into account wear and tear)

As well as services for CTP, Green map and etc.

As can be seen from the description of the largest insurance companies, the conditions of compulsory insurance are the same in all insurance companies, as established by law.

However, not everyone has the opportunity to apply for electronic policies and provide related insurance services that increase the reliability of this type of insurance.

About the electronic insurance policy - where to buy and how to get an insurance policy, we wrote in a separate article.

And in voluntary car insurance, each insurer is already trying to offer a competitive product that will attract the maximum number of customers, including the ability to make car insurance via the Internet.

Accordingly, to the choice of an insurance company as a partner, must fitb with all responsibility and rely not only on the cost of the policy, but also on the risks covered, the possibility and necessity of visiting the representative office.

How to insure a car through the Internet - the procedure for car insurance

7. How to insure a car (car) through the Internet - the procedure for obtaining car insurance online 💻📄

Making a policy (CTP, DOSAGO, etc.) of car insurance via the Internet is quite simple.

In order to insure a car through the Internet (online), for example, according to the insurance policy, you need to:

1. Choose an insurance company as a partner and go to her official website.
2. Go through the registration procedure in your account. This will require the provision of personal data such as a passport, mobile phone, home address.
3. Log in to your account. For this, a special temporary password can be used, which will be sent to the mobile phone via SMS message or to the email address that was specified during registration. It is possible to obtain such a password in the office of the insurance company. Moreover, if you already have a password and login to enter the public services website, they will allow you to enter your personal account on the website of any insurance company.
4. Fill in the fields for applying for a new policy or renewing an old one. To do this, use the registration data of the car, information about its power and information about the owner. Then an electronic signature is applied. If it is missing, you can use the temporary password that was issued earlier.
5. Insurance payment. If there are no errors in filling out, after checking the data in the Automated Information System (AIS), data will appear on the cost of the insurance policy and how to pay it. Online payments can be made using bank cards or using various wallets, depending on the capabilities of the insurance company itself.
6. Print CTP policy (or get a paper version of the document). The paid CTP policy will be displayed in your account and duplicated to the email address. You can print it and have it with you for presentation to the traffic police officer. The system for checking the availability of policies online, according to the state registration mark, has not yet been established in every region. Some companies have the option of ordering a paper version of the policy for home delivery, and large companies such as Rosgosstrakh do this for free. In addition to the policy itself, the policyholder receives detailed instructions for action in the event of an insured event.

It is worth noting that in accordance with the Law on CTP, and in particular, paragraphs 4 and 7.2 of article 15, the printed out policy has absolutely the same power as the paper policy on a special form and completely replaces it.

8. How can you save on car insurance - 5 ways to save when insuring your personal car 💸💡

Of course, own protection is not something to save on, but it’s worth choosing the best insurance product without any extra overpayments.

There are five main ways to save when insuring a car.

Method number 1. Opt out of additional services

Some services included in the insurance package are rarely used. Accordingly, overpaying for an insurance policy with them simply does not make sense. For example, the possibility of calling an emergency commissioner or evacuating a car from the scene of an accident may not be useful at all.

Method number 2. Installation of special protective equipment on the car

In order to reduce the cost of insurance, it is necessary to convince the insurer of its interest in protecting its property from the occurrence of an insured event.

This can be helped by installing high-quality rubber appropriate for the season, which will reduce the risk of accidents or use the latest anti-theft system, which will provide additional protection against theft of the car.

Method number 3. Neat driving

Accident-free riding - This is the most accurate method of saving. For each year you can get 5% discounts and save it up to half the cost of the policy. We are talking about the accident in which the policyholder is to blame.

Method number 4. Insurance online

If you insure a car through the Internet, you do not have to pay insurance premiums to agents, which can reach 20-25%.

In addition, this method significantly saves time, and home delivery of the policy is usually quick and often even free.

Method number 5. Participation in loyalty programs and promotions of the insurance company.

Due to the high competition in the insurance market, insurers conduct various programs to attract and retain customers. If you regularly follow the news of insurance companies, you can choose the right moment to apply for a policy. Thus, insurance premiums can be reduced by 5-50%.

Also, the design of comprehensive insurance services allows you to save. For example, the purchase of an insurance policy and life insurance against accidents in one insurance company will help you get a discount.

9. Frequently Asked Questions (FAQ) for Car Insurance 📃

While studying the issue of car insurance, many readers inevitably come across a huge number of questions. Finding answers to them requires a fair amount of time and effort.

Therefore, we decided to answer the most frequently asked questions on the topic.

Question 1. What is a franchise in simple words in car insurance?

Using a franchise in car insurance can significantly reduce the costs associated with acquiring a policy.

The deductible is that part of the amount that is not refundable to the insured person. It can be presented in the form of a fixed amount or any percentage of insurance.

Otherwise, we can say that the deductible reflects the costs that the client will pay "out of pocket" in the event of an insured event. Using a franchise is optional.

The application of a franchise in car insurance pursues the following goals:

• reducing the cost of issuing a policy;
• reduced interaction with the insurer with minor damage.

Making a policy can be difficult for the following reasons:

• the car is pledged;
• Insufficient driving experience of the insured;
• high risk of accidents.

The main differences in using a franchise in car insurance are that when paying insurance compensation, it is always deducted from the amount of damage caused.

The algorithm for such retention is determined by the type of franchise.

1) Conditional deductible

It is used in cases when the damage caused to the car is within the franchise amount. In this case, this amount is excluded from the payment amount. If the damage exceeds this amount, compensation is paid in full. This type is beneficial for drivers who infrequently cause accidents, having extensive experience and want to reduce the cost of the insurance policy.

2) Unconditional franchise

In this case, the deductible amount is deducted from compensation in any case and does not depend on the cost of repair. This may turn out to be an attractive condition for customers who take out insurance for expensive cars and save on the cost of hull insurance and who do not want to spend too much time to arrange small accidents.

However, it is worth noting that when completing the full CASCO package, the policyholder is forced to expect a referral for car repair to a certified service, and at his own expense the car owner can repair it anywhere, anytime.

3) Temporary deductible

This type has a relatively low popularity among franchised insurers. Its meaning lies in the fact that the main condition for the payment of insurance compensation is not the amount of damage, but the time period of the occurrence of the insured event. Such an agreement stipulates clear terms when the insurer is ready to cover losses, if an accident occurs before the specified period, the policyholder will not pay compensation.

Despite the dubious benefits for the insured and the inability to predict such events, this type of contract is still concluded and for some it may seem convenient.

4) Dynamic franchise

Such an agreement provides for a change in the amount to cover losses. Usually it is applied from the second or third insured event, while the deductible itself grows with each new accident.

5) High deductible

This type is quite rare in use due to the fact that it is relevant only for very expensive cars. The amount of such a franchise starts at 100 thousand dollars. The main feature of this type is the obligation to cover the damage as soon as possible by the insurer in full.

However, in the future, the policyholder is required to return the deductible to the insurer. In this case, a prerequisite is the accompaniment of the insured in litigation by representatives of the insurance company.

6) Preferential franchise

This contract stipulates specific cases when the franchise will not be applied. For example, provided the policyholder is guilty, the insurer fulfills its insurance indemnity obligations, but subsequently collects the deductible from the culprit.

This type can be beneficial in cases where the damage is insignificant and can be paid without the participation of the insurer.

A franchise is a good way to save money when issuing an expensive CASCO policy. Its amount is determined by the contract on the basis of an agreement between the parties.

The main criteria for determining the deductible amount are as follows:

• in cases of theft of the car or its complete destruction, the use of a franchise is mandatory;
• in cases of compensation for damage from an accident, the deductible amount is about 10% of the sum insured;
• an increase in the amount of the deductible makes the cost of the policy lower.

The use of this method in car insurance will not be beneficial for those who apply to the insurance company for compensation under CASCO too often.

In the event of a major accident, there are 2 (two) scenarios:

1. The policyholder is paid the amount to repair the car, but a deductible is deducted from it.
2. The policyholder pays the deductible amount to the insurer, and repairs are carried out in a certified service at the expense of the insurance company.

CASCO clearance with a franchise has its advantages and disadvantages

The pluses include the following:

• when establishing a large amount of deductible, the policy becomes much cheaper. It is especially beneficial for novice drivers, as they have higher insurance rates;
• in case of minor damage, you do not need to contact the insurer;
• covering losses in a major accident. It is recommended that after payment of contributions from the insurance company to sell the car and buy a new one. About how to sell a car quickly and expensively, we wrote in the last issue.

The disadvantages of such insurance are:

• the policyholder takes part of the losses;
• when applying to insurance more than twice a year, insurance becomes unprofitable.

Question 2. How much does car insurance cost this year, how to calculate car insurance, and is the price different in the sales office and on the Internet?

You can calculate car insurance through specialized services and calculators of intermediaries (assistants), but we recommend that you go to the official website of the insurance company and calculate the cost of the car insurance policy through their services.

Actual cost of car insurance must be specified directly with the insurer.

To buy car insurance, avoid intermediaries when applying for an insurance policy.

As a rule, the cost of car insurance via the Internet is lower than in sales offices. But we should not focus on price in this case, since the online insurance registration service is intended more for convenience, simplicity and speed of registration.

9. Conclusion + video on the topic 🎥

In recent years, car insurance is firmly entrenched in our lives. And for a long time, car owners, realizing the possible risks and losses, insure cars not only because they are required by law, but also on a voluntary basis. Registration of additional auto insurance services justifies the invested funds, protecting against losses in an unforeseen situation. Moreover, car insurance via the Internet allows many customers to simplify and speed up the registration process.

Thanks to modern technology, registration of a paper insurance policy becomes optional and can be purchased via the Internet using the online car insurance service.

In this case, the traffic police, having special equipment, will be able to check the effect of insurance on the license plate of the car.

In conclusion, we advise you to watch a video about car insurance (CASCO, CTP, DOSAGO) and their differences:

Now you have learned about how you can get an insurance policy with the least expenditure of time and money, which companies should be considered as an insurance partner, and what types of car insurance are possible.

Question to the readers!

And how do you arrange (extend) car insurance? Did you insure your car online?

We wish you good luck on the road and as rarely as possible the use of insurance for the intended purpose.

Dear readers of the online magazine "RichPro.ru", we will be very glad if you share your comments on the topic of publication below. See you soon!

Watch the video: TOP 10 Tips for CHEAPER Car Insurance - How to get Lower Auto Insurance Rates 2019-2020 (December 2024).