Let's start with the fact that after getting acquainted with the insurance terms and acting in accordance with them, the indemnity payment should not decrease. However, there are cases when the owners of CASCO policies are not acquainted with the terms and conditions of the CASCO policy, the general terms of CASCO and the insurer is forced to reduce or refuse the indemnity payment altogether.
Each case can be considered individually, but here are some of the most popular:
- Violation of traffic rules
- Failure to notify the appropriate authorities
- Jaunāks vadītājs, kā norādīts polisē
- Inadequate drivers' experience
- False provision of information to the insurer
- Uninsured risk ineligible for CASCO policy coverage
Let's look closer to each one of them.
Violation of traffic rules
The Insurer is entitled to reduce or refuse to pay the indemnity in case of a road traffic accident which is based on a violation of the road traffic rules. Here the story is about such violations as driving without the drivers' licence, driving under the influence, violating the permitted speed, not observing the “Stop” sign, driving outside the public roads and other violations that result in a traffic accident.
Failure to notify the appropriate authorities
In the event of a road traffic accident (hereinafter RTA), it is mandatory to notify the relevant authorities in order to register the violation. Of course, the exception is when victims can agree among themselves and make a coordinated statement. If you are not sure what to do, it is better to call the police or your insurance specialist and report the case. Often the police do not come to the scene, but your call is recorded. In the event of a collision with an animal, the police should also be notified. For any illegal actions of a third party, damage, theft of parts and other you need to call the police. If the call is not registered, the insurer is entitled to reduce the indemnity.
A younger driver as specified in the policy
If the CASCO insurance policy states that the vehicle can be driven only by users who have reached a certain age, for example, not younger than 20 years, then if the car was driven by a younger user at the time of the accident, the insurer may reduce the indemnity. How much to cut? This is specified for each insurer in the regulations.
Inadequate drivers' experience
The same applies to the driver's driving experience. The CASCO insurance policy may also state that the CASCO coverage is valid if the driver's driving experience is not less than for example 2 years. If at the time of the accident the driver's experience is less than specified in the policy, the insurer may reduce the indemnity mask.
False provision of information to the insurer
The Insurer may also reduce or refuse to pay the indemnity if when concluding the CASCO policy you have not provided true information about the insured car. Most insurers have stipulated that in order to insure a car against the risk of theft the car must have two ignition keys. If the car owner or user is unable to provide a second key in the event of a car theft the compensation may be reduced by 50%.
It would be wise to evaluate the difference in the price of a CASCO policy if you ask your insurance specialist to prepare an offer with a standard deductible and a deductible of EUR 0. The difference will definitely be! The price of a CASCO policy for the same, your car, may differ for different insurers.
Uninsured risk ineligible for CASCO policy coverage
When insuring your car with CASCO, make sure which insured risks are included in the policy. If a replacement is rented after the accident, then before doing so, find out whether the policy will pay for it. The same should be done with insurance terms before planning to do any extraordinary activities with your car (such as using the car as a taxi), read the terms, or the policy will reimburse you for expenses after the accident.
AN EXAMPLE
It seems like a very ordinary activity attach a trailer to your car and go on vacation. An accident occurs and the trailer slips in a corner and damages the sides of your car. The insurer invites you to read the terms and conditions and it is indeed written that such risk is not insured. Always check the contents of your policy!
There may be unpleasant surprises, but by reading the insurance terms or asking your insurance specialist which is part of the policy and which it does not compensate you can avoid them. Remember that in case of any doubt it is best to contact your insurer. Don't know what to do after an accident? - Call your insurer immediately. Don't know if to call the police? - Call your insurer.
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