A car is no longer a luxury: it is often a necessity dictated by the pace of modern life. However, buying such a vehicle, its owner acquires not only a pleasant advantage, but also hassle, often costly – we are talking about auto insurance. Consequently, each driver must understand why it is necessary to insure his car, as well as to understand the variety of car insurance in order to make the right choice. Consider all these questions in the article.
What car insurance is required for
The number of cars on the roads increases, along with the number of accidents, in which vehicles and people (drivers, passengers and pedestrians) can suffer. One such accident can cause significant material damage to the owner of the car. The big loser is both the injured party and the guilty one.
In such cases, auto insurance comes to the rescue. It is designed to protect the financial interests of the insured car owner. The insurance policy covers the material costs of repairing a damaged car after an accident, breakdown or natural disaster, or buying a new vehicle after a carjacking. Motor insurance also protects the interests of a third party affected by the insured car. So, the auto insurance objects can be 3 sides: Vehicle, cargo or passenger, which was damaged or stolen. The driver and passengers, or rather their life and health. The third person injured in the accident, and his damaged property. Compensation for such damages is very expensive. The presence of an insurance policy facilitates and speeds up this procedure both materially and legally.
CASCO (Comprehensive auto insurance, except liability) protects against hijacking and damage The meaning of the abbreviation coincided purely with the Italian word Casco (“helmet”), from which the name of this insurance originated.
CASCO insures against all force majeure, in which the driver and his car may be, except those cases that are compensated by CTP. The following situations may be indicated in the insurance policy: hijacking and embezzlement; Accident caused by a third party or driver; vandalism; fire and explosion; natural disasters (natural phenomena, animal attacks, the fall of objects on the machine). CASCO insurance is complete and partial. The full range of services includes compensation for all possible types of damage and theft. Partial insurance covers only damage (no theft). The cost of policies is not fixed and is not regulated by the state – each insurance company itself sets tariffs. The price of the policy may depend on the age and length of service of the driver or the age and technical characteristics of his car, etc.
OSAGO – compulsory third party liability insurance. This is the most common type of insurance, since the conclusion of an insurance contract is a mandatory requirement for all car owners, provided for by the laws of the country. Without a CTP policy, the driver does not have the right to get behind the wheel of his car, undergo a technical inspection and get registered. Failure to comply with this requirement is punishable by a fine. The subject of CTP is not the insured driver, but the damage that he caused during the accident to third parties (their health, life and property). But if the driver or his car suffered in an accident, he will not receive compensation. To do this, he needs to arrange other types of insurance.