Unlike the insurance against civil liability, which is mandatory by law, CASCO insurance is optional, and because of this, many drivers choose not to sign such a policy. However, the lack of CASCO insurance implies a much higher risk, which would be wiser not to assume.
Busy traffic in big cities, public roads that do not offer the best driving conditions, as well as some drivers who are in a hurry or careless can cause a lot of damage to your car. Also, natural phenomena are to blame for many vehicle damage, which attracts costly repairs. Without CASCO insurance, you will have to bear the full costs for all incidents involving your vehicle, which can have a negative impact on your budget.
In order to convince yourself on the usefulness of signing such a policy, you need to find out details about the CASCO insurance and about the benefits it offers you.
Table of Contents
1. What does CASCO mean?
CASCO is an optional insurance, through which the owner of the damaged or stolen car is compensated by the insurance company.
If you did not know by now what CASCO insurance is, find out that it is, first of all, an optional insurance, i.e. the owner of the vehicle is not obliged by law to conclude such a contract. However, if the car is owned by a leasing company, this has the obligation to sign a CASCO insurance policy.
Following the conclusion of a CASCO insurance contract, if your car is stolen or suffers certain damages, caused by different circumstances, regardless of whether you are guilty or not of their occurrence, the insurance company will reimburse you and bear the costs of repairs, provided that the vehicle meets the legal requirements for circulation, meaning to be temporarily or permanently registered, is included in the insurance policy and have valid TPL.
2. What can be repaired on CASCO insurance?
With a CASCO insurance, you can repair the damage to your vehicle caused by damage, acts of vandalism, natural phenomena or you can be compensated in case of theft.
In order to choose the company to conclude the contract with, you must find out exactly what the CASCO insurance covers, because the offers may differ from one company to another. In general, there are a number of risks that any insurance company bears, these being:
- Damages: collisions, scratches, bends, overturns, falls into water or pits, falling of foreign bodies on the car, arson;
- Acts of vandalism: damage caused by criminals, even if they are not identified;
- Natural phenomena: earthquake, flood, hail, avalanche, landslide, lightning;
- Theft: total or partial (component parts of the vehicle), as well as attempted theft.
3. What does full CASCO mean?
This is the CASCO insurance that covers any type of damage, regardless of whether it occurred in Romania or in another country.
In the simple version, CASCO car insurance is valid for a limited number of damages, which must occur in the country. To find out exactly what full CASCO insurance covers, you need to ask for an offer from a specialized company, because not all of them offer the same benefits. For example, with this policy, you can insure additional risks, such as total damage. You will be relaxed while traveling abroad, as you also benefit from compensation for all damages caused abroad.
4. What does franchise CASCO mean?
The franchise is the part of the compensation borne by the owner of the car, not the insurance company, and can be a fixed amount or a percentage of the amount of damage or the insured value.
If you choose this option, you will find that you have less to pay for CASCO insurance, but depending on the severity of the damage, you will be required to pay a higher or lower amount, as stipulated in the value of the deductible in the contract. Even if you are a careful driver and consider that you will not be involved too often in accidents, an unfortunate event can occur when you expect less, and unforeseen expenses, of a high value, can be difficult to bear.
5. Frequently asked questions and answers about CASCO insurance
- For what reasons does the insurance premium vary?
The annual CASCO insurance premium varies depending on the value, equipment, age, and condition of the car, previous accidents, the amount of the deductible, the status of insured party: natural person or corporate entity.
- Is the franchise mandatory?
The franchise is mandatory for expensive or luxury cars, because repairs are very expensive for the insurer, and sometimes it is mandatory for drivers under certain age limits, being considered to present a higher risk of accidents.
- Are there exceptions to the application of CASCO insurance?
Yes, any insurance company can stipulate in the contract that they will not bear the damages when they occurred under certain circumstances, for example if the car was left unlocked.
In conclusion, CASCO car insurance is very important and useful, even if it is not mandatory and can save you a lot of unforeseen expenses for car repairs or even in the event of a theft.
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