Good afternoon, dear readers of the financial magazine! Today we will talk about auto insurance , namely: what it is, what types of auto insurance exist, how to calculate and arrange insurance for a car online and where you can profitably insure your car through the Internet.
According to official statistics in Russia, there are more than 44 million units of passenger vehicles, which become participants in about two hundred thousand road accidents per year , in which not only property objects, but also people are injured. It is to protect the health and property of the participants of the accident and there is auto insurance .
From this article you will learn:
- What is auto insurance and what is it for;
- What are the main types and categories of auto insurance;
- How car insurance is carried out and how to implement it online, without leaving home;
- How much will insurance for a car cost and how can you save on the cost of the policy, as well as which insurance companies enjoy the highest customer confidence.
This article will be useful for both beginners and experienced car owners who wish to issue an insurance policy with the most favorable conditions, the highest risk coverage and the lowest cost of the policy.
Want to learn how to protect yourself from costs, while investing the minimum amount? Read about it in our article!
About auto insurance: what types of car insurance are there, how to insure a car through the Internet, how much car insurance costs – we will tell in this issue
1. What is auto insurance and why do you need insurance for a car? 📄🚗
In a legal sense,
Auto insurance is an agreement for the insurance company to indemnify a vehicle owner for damages caused by a traffic accident, theft of a vehicle or a vehicle breakdown.
In our country, as in most economically developed countries, liability insurance for car owners is compulsory , which covers the cost of repairing or treating all those who suffer because of the fault of the insured motorist. Without such a policy can not even get behind the wheel.
Violation of this rule can be threatened by imposing a fine or even depriving a driver’s license . Obligatory liability insurance for car owners and drivers can be called the most effective way to resolve disputes regarding the compensation for damage resulting from an accident.
However , the personal loss of the person responsible for 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 a voluntary insurance policy for his transport and protection of his health , then it does not matter for him who is responsible for the accident that has happened, and can also be at ease in case of a car theft or other methods of damage.
If the driver or the owner of the car is confident in his safety or simply does not want to spend extra money, he has the right not to draw up such a policy, risking incurring losses from his own budget , in case of damage to the vehicle or to himself who is not covered by the compulsory insurance policy .
Accordingly, it is possible to distinguish 2 (two) types of auto insurance: voluntary and compulsory . And anyone who has 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, moreover, to save the car from intruders.
The following tasks can be solved by auto insurance services:
- protection of property rights of car owners;
- increased road safety;
- increasing the speed of resolving conflicts arising between the participants of accidents;
- reducing the risk of danger to the health and lives of road users.
It goes without saying that the driver’s insurance policy doesn’t exclude an accident by itself, but it gives psychological confidence to road users in their safety and guarantees for possible damages.
What types of auto insurance are: CASCO, OSAGO, DSAGO, accident insurance, green card – more on this
2. Car insurance – TOP-5 types of car insurance 📊🚙
Consider the most popular and current types of car insurance.
The term CASCO is established internationally and protects the property of the car owner against damage, theft or total destruction within a certain amount established by the insurance contract.
The contract parameters may vary among themselves, depending on the insurance company, and provide for a different set of cases to be reimbursed.
Advantages of CASCO insurance:
- damages for the entire period of the policy, with a one-time payment of its value;
- compensation for damage, regardless of the cause of the accident;
- full coverage of the risk of damage or loss of property.
However, there are disadvantages of such insurance:
- relatively high price of CASCO policy;
- age restrictions of the car (usually, cars are insured not older than five years).
Details about CASCO insurance , we wrote in a separate article.
It is worth noting that, unlike insurance on CTP, this policy has no restrictions on the payment of insurance premiums, the maximum value of which is determined by the market value of the car at the time of registration of the policy.
The purchase of a CTP policy in our country is obligatory , its presence is an integral part of any driver’s autodocuments, since he may be requested to be presented by the traffic police officer.
This type of car insurance provides compensation for damage to property or health of those injured in an accident caused by the policyholder.
Legislatively established only basic tariffs for CTP, and the insurers themselves have the right to reduce the cost due to discounts or, on the contrary, increase, due to the execution of additional services or increased risk.
In addition, the law establishes a limit for the maximum payment under the CTP 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 repairs exceeds 400 thousand rubles);
- 600 thousand rubles, for damages caused to the life or health of the victim.
In more detail about the insurance policy of CTP , how much it costs and how to calculate, we wrote in our last issue.
This type of insurance can be designated as an addition to CTP , but not every insurance company can offer it.
A DSAGO policy is an additional type of insurance that allows you to recover the amount of damage that exceeds the coverage of CTP insurance policy.
Due to the fact that CTP has limitations 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 perpetrator through the court, which can bring him substantial losses.
From March 17, 2017, amendments were made to the law, where it is now possible to receive monetary compensation if after the accident the car is completely destroyed or the cost of repairs exceeds 400 thousand rubles.
In other cases, insurance companies will pay for repairs to their customers’ vehicles.
The action of the DSAGO policy is possible only in conjunction with the main compulsory insurance and is not applied 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, damage is often caused not only by property, but also by human health, this type of insurance is also highly relevant.
When you make a policy of this type, insured accidents are high severity injuries or injuries resulting in temporary or permanent disability or even death (in this case, the victim’s family or the person specified in the contract as a beneficiary will receive the payment).
5) Green card
This policy is used when leaving the Schengen visa zone and is the European version of the compulsory insurance of car owners. Without a “green card” it will not even cross the border.
You can get such insurance in most insurance companies and even at the customs post.
If you are going to go abroad, then we recommend to familiarize yourself with the article – “ Insurance for traveling abroad ”
The main categories of automobile insurance are: indemnification of persons, protection of a car from theft and other damage, life and health insurance
3. 3 categories of auto insurance 📋
In addition to the above, various types of auto insurance can be grouped into the following categories:
Category 1. Compensation of damage to persons affected by the policyholder’s fault
This category of auto insurance can be attributed to CTP and DSAGO policies .
In the first case, insurance is compulsory and represents payments to the injured in an accident for car damage or health.
From March 17, 2017, the authorities decided that insurance companies would pay for repairs of their customers’ vehicles, and not pay a sum of money for rement cars.
Since payments on OSAGO are limited in amount, in cases of their excess, the policy of voluntary additional liability insurance of car owners comes into force – DSARI, allowing to compensate for damages over the maximum amount of payments on the policy of compulsory insurance and at the same time, do not incur unnecessary costs from its own budget.
Category 2. Protection of your own car from theft or other damage
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 acquired on a voluntary basis and allows the policyholder to protect himself from unplanned expenses.
In addition, the acquisition of the CASCO policy is a necessary condition for obtaining a car loan and allows the bank to protect itself from the risk of losing the collateral guarantee of the return of its money. On where and how to get a car loan without a hull insurance , read a separate article in our magazine.
Category 3. Life and health insurance
Any driver can additionally insure their health in case of injury 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 fellow travelers, he can take out additional insurance to protect them.
Then, in the event of an accident, the passengers of the vehicle who received injuries and damages will receive compensation , and in the event of their death, payments will be sent to their family members.
Table. Types and categories of auto insurance
|Type of auto insurance||Accidental Liability Insurance||Car insurance culprit accident||Life and health insurance|
|Auto insurance name||OSAGO||DSAGO||Hull||Driver insurance||Passenger insurance|
|Insured||the culprit of an accident|
|Beneficiary||injured in the accident due to the policyholder’s fault||insured||insured car passengers|
|Maximum payout amount||If after the accident the car is completely destroyed or the cost of repair exceeds the maximum amount: 400,000 rubles. (property)600 000 rub. (health and life of people)||impressive amount||market value of the insured vehicle||impressive amount|
The table below is broken down by type of insurance and grouped into categories of auto insurance.
How to insure a car – step by step instructions for registration of insurance for the car
4. How to get insurance for a car in 6 steps – instructions for obtaining an insurance policy for a car 📝
Every car owner wants to buy the cheapest but quality insurance for their car, covering as much of the risks as possible.
Making a policy in the first insurance company that came across is a categorically wrong approach, which may entail unnecessary overpayments, as well as other problems related to the resolution of controversial issues.
In our country, the system of acquiring insurance policies through the Internet has long been developed, with the help of which one can significantly save time and money spent. This method provides insurance without unnecessary visits to sales offices, queues and overpayments to insurance agents .
From October 2015 , it became possible to design fully electronic insurance policies for CTP registered in the databases of law enforcement agencies and checked by traffic police officers with the help of special equipment, online. In addition, you can order the delivery of a CTP policy for home delivery.
6 simple steps to get car insurance
To do this, you must 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 efficiently work will be done to pay compensation in case of an insured event.
Honest insurance companies performing their duties in good faith will never deliberately underestimate the amount of insurance payments and will do everything to take into account the wishes of the client. While questionable firms may find various pretexts for refusing payments or try to reduce them.
You can define the following criteria for choosing an insurer:
- his reputation;
- financial sustainability;
- insurance payments;
- branch network;
- independent assessment of rating agencies;
Before you conclude an insurance contract, be sure to check the validity of the license for the provision of insurance services.
Step number 2. Calculating the cost of car insurance
The range of insurance rates for insurance is very wide. According to OSAGO, each insurance company can either increase the price or reduce it, and for the types of voluntary insurance there is no unified pricing at all.
To avoid errors when calculating the cost of the policy independently , which depends on many factors, it is easiest to use special services and insurance calculators on the Internet sites of various insurance companies.
To calculate the insurance for the car will need to prepare a certificate of registration of the vehicle and driver’s license.
There are many services and calculators online, 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 (though the cost of the policy from intermediaries may differ from the price of “official”).
In this case, you must perform the following steps:
- select the type of insurance;
- select companies to compare;
- determine the most profitable option;
- apply online policy or order home delivery.
Step number 3. Providing the necessary documents
Basically, a standard list of documents is required for car insurance:
- driver’s license;
- technical passport for the car;
- registration certificate;
- diagnostic card;
- if necessary, power of attorney if the insured does not own the car.
Errors in calculations are excluded, since all data is checked through the PCA database .
Step number 4. Filling out an application and signing a contract
Before signing the contract, it is necessary to study it in the most detailed manner, in order to avoid further surprises.
Step number 5. Payment of insurance policy
In the case of an online transaction, you can pay non-cash. When making through the sales office can be calculated and in cash.
Be sure to get 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 from counterfeiting.
Electronic policies must be entered into the PCA database.
How much is the insurance for the car – the main parameters and factors of which is determined by the cost of the insurance policy
5. How much does car insurance cost – 5 factors that affect the cost of a motor vehicle insurance policy 💰
To determine how much insurance costs for a car, you need to understand that the price of an insurance policy is primarily influenced by its appearance , i.e. the number of covered insurance cases, respectively, the more, the more expensive the policy.
No less important for the cost of insurance and the region of residence of the insured , in large cities the risk of accidents is higher, and therefore insurance is more expensive, and having a regional residence permit can be a good save.
Indicators such as the age of the policyholder and the experience of 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 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 number of horsepower is determined by the coefficient affecting the price, it varies from 0.6 (for small cars) to 1.6 (for cars with maximum power).
2) Anti-theft system
Depending on the model of the alarm is determined by its reliability. Insurance companies closely monitor data based on the statistics of hijackings and form special lists of anti-theft security systems that can significantly reduce the risk of theft of the vehicle, and, consequently, the cost of the insurance policy.
3) Car age
The price of insurance increases in accordance with the aging of the vehicle, as this increases the risk of malfunctions and possible accidents due to this. However, the age of the car is taken into account with such indicators as the market value of the car and its technical condition at the moment.
When buying a used car, you need to pay attention to the fact that many insurance companies do not work at all with cars older than 8-10 years.
4) The market value of the car
When insurance is issued on a new car, its value is determined on the basis of 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 profitable for the insurer 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 case of an accident, the insurance payment received may not be enough .
5) Driving experience of the insured
Driving experience directly affects the risk of getting into an accident. Experienced drivers become participants of accidents much less frequently than novices in 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 who have traveled 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 tabular form.
Table. The main factors on which the cost of insurance depends
|Factor||Criteria for cost increase insurance|
|Type of policy||More variety of insured accidents|
|Driving experience||Little driving experience|
|Vehicle brand||demand among hijackers|
|Characteristics of the vehicle||Large size and power of the car|
|Signaling||The unreliability of the PS or its absence|
|Accident Frequency||A large number of accidents for a certain period|
|Vehicle cost||More expensive cars|
|Place of registration of the insured||Larger city with a larger population|
|Term of insurance||Short Term Insurance|
The table lists the main factors and criteria on which the cost of auto insurance depends.
6. Where to insure a car on favorable terms – TOP-9 insurer companies where you can make insurance for a car cheaply
The Russian insurance market is represented by a number of companies that offer a wide variety of different auto insurance services and a wide range of tariffs. However, each company is different in its capabilities and reliability.
There are TOP-9 (eight) of the largest and most popular insurance companies.
Undoubtedly, the most famous and largest insurance company in our country. It has been operating in the Russian market for more than 95 years and has over 3 thousand branches throughout Russia.
At this stage, Rosgosstrakh is in the process of active development of online car insurance , as well as the entire range of insurance services. Specialists of this organization even provide psychological support to clients who have suffered from accidents through a round-the-clock hotline.
In the field of auto insurance Rosgosstrakh offers the following services in this period:
- CTP (According to statistics, more than a third of the policies of compulsory auto insurance are made out of this insurer).
- CASCO (Full coverage of damage to the car of the insured, up to his evacuation from the accident site).
- CASCO anti-crisis (Protecting your own car from great damage, at a price 70% cheaper than the basic policy of voluntary insurance. At the same time, the insurer has the opportunity once for the entire period of insurance to apply with minor damage).
- Green card (A prerequisite for leaving your car abroad).
2) Intach insurance
This is a relatively young company, operating since 2008, but already leading the so-called national ratings in terms of customer confidence, their feedback and, to a greater extent, response speed in case of insurance claims.
Since this insurance company has long worked with one of the largest insurance holding British RSA Group, it applies advanced European technologies in their work, such as a unique system of ” rapid response » (Fast Track), where the majority of insurance claims trend for the repair is issued immediately after the call from the accident scene and does not require a visit to the company’s office.
In addition, the company provides round-the-clock customer support and insurance policies through the Internet.
An insurance company operating since 1991, with the highest reliability rating and a high degree of customer confidence. RESO-guarantee offers its customers more than 100 types of insurance services, including motor insurance, which is a priority for the company.
RESO has one of the largest networks of branches in Russia and the CIS countries, on whose territory over 20 thousand insurance agents of the company work. She repeatedly became the laureate of the “ National Brand ” award, ranking first among insurers.
In addition to the compulsory auto insurance, this company offers the services of voluntary additional insurance of motor vehicles, such as KASKO, DSAGO, etc. At the same time, according to the data of the Central Bank of the Russian Federation, this insurance company holds the leading position in Russia in terms of KASKO , providing large discounts to its customers. 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 a repair direction without visiting the office, as well as payment of insurance th compensation without any reference, if it does not exceed 5% of the total sum insured.
This is one of the oldest insurance companies in our country. Ingosstrakh started its activities in the USSR in November 1947, consistently opening branches and subsidiaries around the world, as representing the interests of the country abroad was initially a priority. Since 2004, the Ingo International Insurance Group was formed, which includes the company.
In the Russian market, Ingosstrakh is active in the field of auto insurance, and enjoys the confidence of customers, with the ability to provide a variety of services at the highest level.
So, among them are the following services:
The policy operates in accordance with the law, but the possibility of its expansion is provided. The service ” Avtozashchita ” that allows you to protect car owners under five years of age 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 the policyholder fully assumes all costs. Service “Guarantee THAT” reimburses the cost of troubleshooting identified during the technical inspection of vehicles no older than ten years.
To the standard CASCO policy, Ingosstrakh offers 6 types of additional insurance services for risks not included in the policy set, such as insurance against breakdowns on the road, loss of value with complete destruction or theft, against post-warranty breakdowns, insurance of the anti-theft system, tires and wheels and even a system of “smart” insurance, which takes into account the manner of driving and using a car.
The policy is valid throughout the country.
4. Green card
Provides liability insurance of the insured, traveling outside the Russian Federation.
5) Renaissance insurance
This company annually receives a high rating from rating agencies and is popular with 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 among 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, obtaining an optimal set of insurance claims, compensable services and services that will facilitate recourse. A wide network of offices, in turn, will provide timely and convenient solution of 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 in terms of reliability rating in Russia and stable indicators, according to international estimates.
In this company it is possible to issue CASCO, CTP policies and Green Card policies on the most favorable terms. Sales are carried out both in numerous offices and through online services.
Distinctive features are products such as “ Very clever hull insurance ”, which gives the right to a good discount when applying for a policy ( 35% ) for tidy drivers, which is monitored by a special device, which the company installs at its own expense or the “ Keys on the hood ” service for VIP- customers, providing an immediate departure of the emergency commissioner directly to the accident site, fully accompanying the execution of all documents and transporting the affected vehicle for repair, that is, the policyholder is fully exempted from all x problems associated with the design of the accident.
7) Tinkoff – auto insurance
Tinkoff Insurance branch was founded in 2013, and the bank itself even earlier. The rapidly developing Internet bank has the potential for development and offers a wide range of services.
Tinkoff – auto insurance offers to arrange insurance for the car online. To insure the car through the Internet, you must go to the company’s official website, use the calculator and follow the indicated steps for car insurance.
8) VTB Insurance
The insurance company is represented on the Russian market since 2000 and is included in the VTB Group, having the highest ratings from rating agencies.
Despite the fact that the company is in the TOP-10 of the largest insurers for voluntary types of insurance, from December 29, 2016, the Central Bank of Russia suspended VTB’s activities in issuing CTP policies.
Within the CASCO policy, VTB-Insurance provides 3 (three) tariffs : Light, Optimal and Maximum. Among the additional services, even at the minimum rate, round-the-clock customer support and evacuation from the accident scene are provided.
The average rate offers additional support for the emergency commissioner, and the maximum – will provide technical assistance on the road.
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 marked by the gratitude of the President of the Russian Federation, twice. VSK Insurance House has more than 400 offices throughout the country and provides a wide range of insurance services.
For car owners, the following types are presented:
5 basic tariffs are offered: classic , auto metric (saving up to 25% is provided by a special application installed on a smartphone and monitoring driving safety), sure (30% saving with full coverage of damage only in case of an initial insurance event), compact (75% can be saved if insurance claims occur frequently, but only if the insured is innocent), compact plus(70% savings and full coverage of catastrophic damage).
As well as 2 (two) additional products: technical assistance on the road and GAP (covering the difference between the initial cost of the car and its market price at the moment, taking into account wear and tear)
As well as services on CTP , Green Card , etc.
As can be seen from the description of the largest insurance companies, the terms of compulsory insurance are the same in all insurance companies, as established by law.
However, not everyone has the ability to design electronic policies and provide related insurance services that increase the reliability of this type of insurance.
About the electronic insurance policy of CTP – where to buy and how to properly issue an insurance policy, we wrote in a separate article.
And in voluntary auto insurance every insurer is already trying to offer a competitive product that will attract the maximum number of customers, including the possibility to make insurance for a car via the Internet.
Accordingly, to the choice of the insurance company as a partner, you need to fit s with full responsibility and rely not only on the cost of the policy, but also on the risks covered, the opportunity and the need to visit offices.
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 car insurance online 💻📄
It is quite simple to issue a policy (CTP, DoCAGO, etc.) for car insurance via the Internet.
To insure a car through the Internet (online), for example, under the policy of CTP you need to:
- Choose an insurance company as a partner and visit its official website.
- Complete the registration procedure in your account . This will require the provision of personal data such as a given passport, mobile phone, home address.
- Log into your personal account . To do this, you can use a special temporary password that will be sent to your mobile phone, via SMS message or 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 access the website of public services, they will allow you to log in to your personal account on the website of any insurance company.
- Fill out the application for issuing a new policy or renewal of the old one . To do this, use the registration data of the car, information about its capacity 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.
- Payment insurance . In the absence of errors in filling out, after checking the data in the Automated Information System (AIS), data on the cost of the insurance policy and methods of its payment will appear. Online payment can be made using bank cards or using different wallets, depending on the capabilities of the insurance company itself.
- Print the policy CTP (or get a paper version of the document). The paid CTP policy will be displayed in your account and duplicated to the email address. It can be printed out and carried with you to the traffic police officer. The system for checking the availability of policies online, by state registration plate, is not yet established in every region. Some companies have the option of ordering a paper version of the policy for home delivery, and such large companies, such as Rosgosstrakh, do it 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 , a printed policy has exactly the same power as a paper policy on a special form and completely replaces it.
8. How to save on car insurance – 5 ways to save when insuring a personal car 💸💡
Of course, own protection is not something that would be worth saving, but choosing the best insurance product is worth it without extra overpayments.
There are five main ways to save when insuring a car.
Method number 1. Refusal of additional services
Some services included in the insurance package are rarely used. Accordingly, to overpay for the insurance policy with them simply does not make sense. For example , the possibility of calling an emergency commissioner or evacuating a car from an accident site 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, you must convince the insurer of your interest in protecting your property from the insured event.
This can help install high-quality rubber, corresponding to the season, which will reduce the risk of accidents or the use of anti-theft system of the latest model, which will provide additional protection against theft of the car.
Method number 3. Careful driving
Trouble-free riding is the most accurate saving method. For each year, you can get a 5%discount and save up to half the cost of the policy. It is about the accident in which the policyholder is guilty.
Method number 4. Online insurance
If you insure a car through the Internet, you will not have to pay insurance reward agents, which can reach 20-25% .
In addition, this method significantly saves time, and home delivery 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 a good time for registration policy. Thus, you can reduce the insurance remuneration of 5-50% .
Also, the design of comprehensive insurance services can save. For example, the purchase of insurance policy and life insurance against accidents in one insurance company will help to get a discount.
9. Frequently asked questions (FAQ) about car insurance 📃
In the course of studying the issue of car insurance, many readers inevitably face a huge number of questions. Finding answers to them requires enough 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 auto insurance?
Using the franchise in auto insurance can significantly reduce the costs associated with the acquisition of the 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 a percentage of the insurance.
Otherwise, it can be said 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 use of the franchise in auto insurance has the following objectives:
- reducing the cost of registration policy;
- reduction of interaction with the insurer with minor damage.
Policy design can be difficult for the following reasons:
- car is pledged;
- insufficient driving experience of the insured;
- high risk of accidents.
The main differences in the use of a franchise in auto 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 franchise
Used in cases when the damage caused to the car is within the limits of the deductible 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 rarely become the cause of an accident, having a lot of experience and want to reduce the cost of the insurance policy.
2) Unconditional franchise
In this case, the deductible amount is deducted from the compensation in any case and does not depend on the cost of the repair. This may be an attractive condition for customers who insure on expensive cars and save on hull insurance costs and who do not want to spend extra time to issue small accidents.
However , it is worth noting that when you make a full CASCO package, the policyholder has to wait for the direction to repair the car to a certified service, and the owner of the car can make repairs at any place, at any time.
3) Temporary franchise
This type has a relatively low popularity among policyholders applying for a franchise. Its meaning lies in the fact that the main condition for the payment of insurance compensation is not the amount of damage, but the period of occurrence of the insured event. Such a contract specifies a clear time when the insurer is ready to cover losses, if the accident occurs before the specified period, the insured will not pay compensation.
Despite the dubious benefits for the policyholder and the inability to predict such events, this type of contract is still concluded and for someone it may seem convenient.
4) Dynamic franchise
Such a contract provides for a change in the amount to cover losses. Usually it is applied from the onset of 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 from 100 thousand dollars. The main feature of this type is the obligation to promptly cover the damage by the insurer in full.
However, in the future, the insured is obliged to return the amount of the deductible to the insurer. In this case, the obligatory condition is that the insured is accompanied by representatives of the insurance company during the court proceedings.
6) Preferential franchise
This contract specifies the specific case when the deductible will not be applied. For example, on condition that the insurer is guilty, the insurer fulfills its insurance indemnity obligations, but subsequently collects the deductible amount from the culprit.
This type can be beneficial in cases when the damage is insignificant and can be paid without the participation of the insurer.
Franchise is a good way to save when you make 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 amount of the franchise are as follows:
- in cases of theft of a car or its complete destruction, the use of a franchise is mandatory;
- in cases of compensation for damage from an accident, the size of the deductible is about 10% of the sum insured;
- increasing the amount of the franchise makes the cost of the policy lower.
The use of such a method in auto insurance will not be beneficial for those who apply to the insurance company for reimbursement of CASCO too often.
In the event of a major accident, there are 2 (two) scenarios:
- The insured is paid the amount for the repair of the car, but the deductible is deducted from it.
- The insurer pays the deductible amount to the insurer, and repairs are made in a certified service at the expense of the insurance company.
Making a CASCO with a franchise has its advantages and disadvantages
The advantages include the following:
- when establishing a large amount of the franchise, the policy becomes much cheaper. Particularly beneficial for novice drivers, since they are subject to increased insurance rates;
- in case of insignificant damage, you do not need to contact the insurer;
- cover losses in a major accident. It is recommended after paying premiums from an insurance company to sell a car and buy a new one. To learn how to sell a car quickly and expensive , we wrote in the last issue.
The disadvantages of such insurance are:
- the insurer assumes part of the loss;
- when applying to the insurance more than twice a year, the insurance becomes unprofitable.
Question 2. How much is insurance for a car this year, how to calculate insurance for a car and is the price different in the sales office and on the Internet?
You can calculate insurance for a car through specialized services and calculators of intermediaries (assistants), but we recommend that you go to the official website of the insurance company and, through their services, calculate the cost of an automobile insurance policy.
The actual cost of car insurance must be specified directly from the company-insurer.
To buy insurance for a car, avoid intermediaries when you make an insurance policy.
As a rule, the cost of insurance for a car via the Internet is lower than in sales offices. But one should not focus on the price in this case, since the online insurance design service is intended more for convenience, simplicity and speed of registration.
9. Conclusion + video on the topic 🎥
In recent years, auto insurance is firmly entrenched in our lives. And for a long time car owners, realizing possible risks and losses, insure cars not only because they are obliged by the 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, auto insurance through the Internet allows many customers to simplify and speed up the process of registration.
Thanks to modern technology , a paper insurance policy becomes optional and can be purchased online using the online car insurance service.
In this case, the traffic police, with special equipment, will be able to check the effect of insurance on the license plate of the car.
In conclusion, we recommend watching a video about auto insurance (CASCO, OSAGO, DoCAGO) and their differences:
Now you have learned how to get an insurance policy with the least amount of time and money, which companies should be considered as an insurance partner and which types of car insurance are possible.