Over the past three or four years, insurance has become one of the most sought after financial services. The reason for this is our awareness of the many risks we face in life. The insurance market is also developing: in an effort to meet the growing demand of the client, companies offer more and more new interesting products.
Today, many of us are already familiar with various types of insurance, know about insurance companies existing on the market, and know how to choose the necessary insurance programs. This is especially true for car owners, who are at risk not only of losing or damaging their own car, but also of harming other road users.
In Ukraine, every car owner knows that it is possible to insure civil liability to third parties, as well as your car in case of theft or damage. There is everything you need for this: several hundred companies operate in the auto insurance market, each of which offers various insurance programs. It remains only to choose the right company and conditions. It is at this stage that beginners have a lot of questions: what exactly to insure and against what, which company to choose, how to get a guarantee that the company will pay insurance compensation, etc.
Of course, most of us are not professionals in insurance, so such questions are quite natural. In order not to waste time answering numerous questions, we decided to devote several articles to the theory of auto insurance. This will help you understand the basic concepts and better navigate the services offered.
So, let's start with the main thing. What is the concept of "auto insurance"? We are talking about three main types of insurance, the purpose of which is to protect your property interests related to the use of a car. In other words, with the help of insurance you can protect yourself from possible financial losses in case of accidents with your car. Auto insurance includes car insurance (CASCO), insurance of civil liability of the owner of the vehicle for damage caused to third parties, as well as life and health insurance for the driver and passengers of the car against an accident on the road.
The most difficult, if I may say so, is CASCO insurance: here the client is faced with many conditions. Therefore, we will devote today's article to the basics of car insurance.
CASCO insurance
Any insurance company will offer you to insure the car in case of theft (theft) or damage as a result of an accident, hit by any objects, natural disasters, fire, explosion, falling aircraft or trees, animal attacks, illegal actions of third parties, etc.
You can insure the car against all possible risks (“complete CASCO” program) or choose some of them: for example, only the risk of an accident. The territory of insurance also plays an important role, especially if you like to travel in your car. Insurance companies can offer you Ukraine, the CIS countries and Europe as such a territory.
The car is insured for a certain amount (sum insured), within which the insurance company pays compensation. The sum insured is determined as the market value of the car at the time of conclusion of the contract. According to the Law of Ukraine “On Insurance”, the company reimburses the insured (you) for the actual damage incurred, so it makes no sense to insure a car for an amount greater than it costs. However, you can insure the car for a smaller amount, thereby saving on the payment of insurance services. But in this case, insurance will be considered partial (incomplete). This means that in the event of an insured event, you will not be compensated for the entire amount of the damage suffered, but only for that part of it that corresponds to the share of the sum insured in the agreed real value of the car.
The cost of insurance for you is determined by the insurance rate, which the company's specialists calculate based on the information you provide. The following factors influence the value of the tariff ...