What is CASCO insurance

March 2021 | Updated: August 2023

Unlike MTPL, which in Latvia is mandatory for all vehicles participating in traffic, to cover the costs of damage to other property or injury, CASCO insurance is usually optional. However, if you finance the purchase of your vehicle through leasing company or bank, the lender may require the car to have CASCO insurance, which will protect their financial interests in the specific vehicle.

CASKO also covers non-collision incidents such as theft, vandalism or natural disasters such as trees falling during hail and storms. CASKO compensates for damage to your car after a collision with another vehicle or animal even if you are at fault in the collision. This is the main difference from OCTA polsies.

Is CASCO insurance mandatory?

Unlike OCTA, which is mandatory, CASKO insurance is usually optional. However, if your car is financed by a bank or leasing company or if you rent your car for daily needs, CASCO will definitely be a mandatory requirement, because the lender or lessor will want to protect their investment.

How is the KASKO insurance premium determined?

CASKO insurance premiums are affected by factors such as your vehicle make and model, capacity, age, your driving history, your driving experience, city or region of registration, selected deductibles and extras in the policy included risks or add-ons such as passenger accident insurance and service replacement car.

For example, CASCO for a sports car will definitely be more expensive than a family sedan due to increased repair costs, and may be applied a higher deductible, for example, for theft or car write-off.

What is the difference between deductible and limit in KASKO insurance?

Deductible is the amount you pay out of pocket for the covered claim, which the insurer will deduct from the payout compensation or will require you to cover part of the repair costs in the amount of the deductible.

The limit is the maximum amount the insurer will pay per case. For example, if your policy has a 500-euro car deductible for glazing damage and a 5,000 euro limit for covering such damage. If an insurance event occurs when your car damage to the glazing that exceeds the limit, then the insurer will cover the repair costs only up to this limit within 5,000 euros and will deduct a deductible of 500 euros from you. As a result, you will receive EUR 4,500 compensation from the insurer.

Is CASCO insurance valid if my car is driven by someone else?

Usually CASCO insurance covers your vehicle, not a specific driver. However, usually CASCO policies the age of the youngest driver of the vehicle is also discussed, as different age groups can influence the risk assessment and therefore the CASCO price.

For example, if you have indicated your age as the youngest user in the policy, but you have given your car to a younger friend or relative and an accident has occurred, then this fact will be taken into account in the evaluation of the compensation case and the insurer is entitled to pay the compensation in full.

What is a deductible

Deductible is the amount that the insurer deducts from the amount of indemnity that it will pay you after the indemnity event has been reported. Not all cases require the insurer to pay the deductible, but often you pay more for such an extra when buying a policy.

Deductible can be divided into the following groups:

A deductible is your participation in the insurance, or the part of the risk chosen by you, which you have undertaken to cover from your own funds when an accident occurs. Your insurer deducts the deductible from the amount of indemnity to be paid. For example, if the car repair works are valued at 1,000 EUR and the deductible of 140 EUR is indicated in the policy, then the insurer will pay you 860 EUR. The higher the deductible you choose, the less you will have to pay for the policy.

What is insured with a CASCO policy

Road accident, collision with an animal, theft, theft, robbery, damage to windows and letters, theft of equipment + sports equipment, damage caused by fire and natural disasters, falling objects and substances, transport after an accident, number plate, hydraulic shock, keys and consoles, items left in the cabin, refueling inappropriate and other risks.

Should a CASCO policy printout be carried with you

No, you dont have to show the policy to anyone. So it is not necessary to keep the printout of the policy in the car. It is enough that the policy is saved in your e-mail or elsewhere and you can access the policy number which is the most important part of the whole policy if it is necessary to review the terms of the policy or need a policy number when claiming compensation from your insurer.

What is the Bonus Malus class and how is it calculated

Bonus Malus is a risk class in which insurance companies classify drivers on the basis of their insurance history, which is formed by their insured events and the total number of insured days. The longer you have insured your car and the fewer claims you have had, the higher your Bonus Malus class will be. A higher BM class means a cheaper policy. Initially, everyone is assigned a risk class of 6 and it is recalculated in September each year. Class 1 is the lowest and 17th is the highest one can get. Drivers with 1st class BM insurance will be much more expensive than those with 17th class.

Will the policy be valid if someone else is driving the car

It depends on the terms of your policy. There are insurers who apply a higher deductible for such cases or pay part of the indemnity for losses caused by a driver who is younger than the age specified in the policy. If you know that your car will be driven on a daily basis by people younger than you, then it is definitely worth checking this before purchasing a policy and, if necessary, request a change in the policy conditions from your insurer.

Can you pay for CASCO in several installments

Yes, but the possible number of payments for a CASCO policy depends on the offer of each insurer. There are insurers that allow the price of the policy to be divided into monthly payments. It should be noted that the price of the split payment policy will increase by a few euros.

What is car accessories in the policy

Navigation and audio systems, roof racks, bicycle mounts, child seats, telephone holders, etc. are often called vehicle accessories.

Should the car be taken to the insurer before the policy takes effect

There are insurers whose mandatory requirement is to physically show the car before the policy takes effect, but in most cases it is enough to send photos of the vehicle by e-mail. The Insurer will ask you to send photos showing the outside of the vehicle from different angles, the interior, accessories, security systems, a full set of keys and technical passports on both sides.

In which cases may compensation be refused

When concluding any insurance contract, we recommend getting acquainted with the terms and conditions of the policy, the insured risks and also exceptional cases in which the insurer will not pay compensation.

When it comes to CASCO insurance, there are some factors that can influence the insurer's decision on the payment of indemnity and its amount. For instance:

To purchase a CASCO policy, should the car be equipped with special security systems

It is essential to have at least a factory-installed alarm, as well as two sets of keys. If your car is in a special risk category, then insurers may require you to install additional security systems (such as an immobilizer or tracking device) so that the risk of theft is also insured in the CASCO policy. Failure to comply with the insurer's terms and conditions may result in the refusal to pay the indemnity or its partial payment.

What to do if CASCO is too expensive

If the car is older than 15 years, then most insurers will not offer a CASCO policy or it will be so expensive that it would be more convenient to buy a new car than to pay for the policy. In such cases the light version of KASKO which is often called Mini CASCO or MTPL Plus comes to the rescue.

This type of insurance which can also be purchased online is offered only by Compensa called the Golden MTPL policy. Golden MTPL compensates for losses incurred by your car after a collision with an animal or other vehicle, even if you are to blame in the accident. Normal MTPL does not cover expenses to your car.

How to get a CASCO insurance indemnity

Each insurer has its own procedure, but the most convenient and popular way to apply for insurance indemnity is to fill in a form online or call by phone.

If you have an accident or have found damage to your car when you return to it, we recommend that you contact your insurer immediately. Your insurer will tell you how to proceed properly, thus excluding the possibility of not receiving the insurance indemnity, if the terms of the policy and the insurer's instructions have been followed in advance. It is not always necessary to call the police at the scene, but to be sure about this, we definitely recommend contacting the insurer first, as situations can be very different, as can the conditions of the insurers.

In case of car theft, you should definitely contact the police immediately and immediately afterwards with your insurer. You will have to submit a report of theft to the insurer, as well as present a car registration certificate, a full set of keys and an alarm panel.

Can the policy be changed

Contact your insurer and a policy supplement will be created for you. Depending on the added risk or extension of the policy, you may have to pay extra for it.

← All Blog Articles