Currently, almost everyone knows about CASCO insurance and how it has become an invaluable guarantee of safety in both road traffic accidents and theft. The CASCO policy is an assistant in a variety of situations, including the vehicle having a technical issue on the road, or covering the cost of a rental while your car is being repaired after an accident.
The CASCO policy is particularly important in cases where existing financial resources are planned, but unexpected expenses related to safety or security of a car or buying a new car arise.
There are many complexities with CASCO insurance, but over time, we have found the 3 most common problems that you can avoid.
1. When purchasing a policy, specify the installed security systems
Unfortunately, many do not know whether their car is equipped with a car alarm and they're hesitant about telling the insurer. How could my new, beautiful car not have a car alarm? Very simple—for example, we often see advertisements for cars that are "just out of Germany," but in Germany, the car alarm is a rarity. We must pay attention to these differences and details.
It must be admitted that there is no shortage of dubious car dealers responding to the buyer's question: "Is this car equipped with an alarm?" - They'll often claim, "Yes! With a factory alarm." When the new car owner then comes to us to draw up a CASCO policy, we discover that it does not, in fact, have a car alarm. Often, there is a dishonest seller in our presence and he has to admit that the car is only equipped with a factory immobilizer. These are two completely different things! Since 2000, it is impossible to buy a car without a factory immobilizer and it hardly helps against car theft.
Often, the car can also be insured without alarm, but it must be particularly informed by the insurance company, which will then assess the conditions on which it would be willing to issue a policy.
If the policy states that the car is equipped with an alarm, but in fact, it is not, it is misleading the insurer and the policy buyer will certainly have negative consequences of receiving remuneration.
2. One must act correctly immediately after the accident occurs
The insurance agreement stipulates that after its occurrence, each of the type of accident requires a specific action from the policy owner. For example, a fire should be notified to the State Fire and Rescue Service. Theft should be reported to the State Police, who are responsible for managing the incident site and providing the appropriate the documentation. Often these stipulations and conditions are described in long, confusing terms and are only discovered when it is too late - the insurance company has sent a refusal to pay compensation.
This can be avoided if the insurance rules are carefully read before the policy is purchased, or at least the "Insured Duties" section.
Some examples that should have been informed to the police but have not been -
"When I arrived at the car, I found it scratched."
"I drove into a road sign." "Something from the adjacent building fell on my car."
"I was struck by a wild animal while driving on the highway."
3. The deadline for filing the accident is strict
Naturally, it seems that if there is a policy, the loss will be reimbursed and the difference when the insurer is informed. However, it should be remembered that all insurance contracts include the deadlines for the insurer to be informed of the accident. Latvian insurers usually require notification immediately or within 3 business days. If this notification is not given, the insurance company has the right to not compensate the loss.
At Perks, we hope you have found this advice helpful. For more advice and guidance through the insurance maze, call or email us. We'll help you avoid mistakes and helping you find the best CASCO policy for you. Call +371 26 668 558 to schedule a free, no obligation consultation .
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