In order to protect against losses in the event of vehicle damage, anyone can voluntarily choose to obtain a CASCO insurance policy in addition to the MTPL policy. The lowest offer price is commonly sought out, however, when choosing a policy, you should familiarize yourself with all the terms and conditions of the insurer. So you may be wondering—what should you keep in mind when choosing a CASCO insurance policy? The experts at Perks want you to consider these questions:
1. Why would insurance compensation not be paid?
The insurer has the right to determine situations in which compensation will not be paid out. First, insurers offer all-risks or named-risks policies. The all-risks policy provides a general guarantor of compensation in situations where the vehicle is damaged. Only in exceptional circumstances specified in the contract is compensation is not paid. The named-risks policy provides that the contract already lists specific situations or a list of risks for which you will have the right to receive compensation. For example. the insurer may refuse to pay compensation if the damage occurred due to the driver's failure to comply with the traffic rules or the actions after the accident that were explained in the terms and conditions.
2. How much is the deductible?
The deductible is the part of the loss that is burdened by the policy buyer himself. The lower the deductible, the higher the price of the policy and vice versa, so it is recommended to check the price offer of the insurer with different deductible rates. For example, one should check the price difference with a deductible of 0 EUR or 200 EUR. As a bonus, many insurers offer certain cases where a 0 EUR deductible is set, for example for damage to the car windows. In such a case, one should be determine if the deductible is increased with each repeated instance.
3. What range of services are offered in the event of an accident?
Does the insurer offer towing services even if there has been no accident? Does it pay for transportation costs? Does it choose a car repair shop? The services offered by each insurer are different, so it's important to research each one so that you have a plan of action in case of damage. The insurer may also determine a different procedure for the replacement of vehicle parts, reserving the right to install equivalent parts or equipment.
4. What if the damage occurred outside of Latvia?
If you plan to go abroad, find out which countries the CASCO policy is valid in and how to report damage abroad. In the contract, the countries can be divided into several groups—Latvia, the Baltic States, European countries and CIS countries—with a list of countries within each group, so make sure that the chosen destination is included in the insurance contract.
5. Is a rental car provided in case of damage?
In a situation where the vehicle has been handed over to the repair service, there may be a need to maintain mobility in the daily rhythm, so it should be evaluated whether the insurer provides a rental car for the duration of the repair. If the vehicle cannot be used in road traffic, is the rental car provided on the first day or only after receiving the insurance claim? Is it possible to choose a rental car service provider? You should also determine how long the rental car will be granted.
6. What are the conditions for additional safety requirements?
The insurer may reduce or refuse to pay compensation in cases where the security systems installed in the vehicle do not meet the requirements of the insurance contract. For example, if an alarm with sound, an immobilizer or a radio search device are not installed.
A thorough familiarization with the proposed conditions will help you find the most advantageous and suitable policy for you!
Too much to consider? Let the experts at Perks guide you through the insurance maze—for no additional cost! Our brokers handle the insurance so you can save precious time.
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