What is a Casco insurance policy?

To understand the importance of Casco insurance, it helps to keep the following example in mind. We all know that every car registered for traffic must be insured, that is, that you must hold a policy in order to get the registration stamp. However, only a few people know exactly what kind of policy that is and what it insures us against.

The registration policy is in fact a motor third-party liability insurance policy, which means that it insures your liability as a driver in case you cause damage to a third party. In that case, instead of you as the person who caused the damage, the repair costs are borne by the insurance company.

But who will repair your car?

The third-party liability policy applies only to the vehicle of the injured party, and not to the vehicle of the person who caused the damage. This is exactly where the importance of the Casco policy comes into play. The Casco policy covers damage exclusively to the policyholder’s own vehicle, caused as a result of their own or someone else’s fault, or of force majeure.

Third-party liability policy – covers the cost of repairing another person’s vehicle that you have damaged with your vehicle, in your place.

Casco insurance policy – covers the cost of repairing your vehicle

Which risks are covered by Casco insurance?

With Casco you can protect your vehicle against destruction or damage caused by the following risks:

Traffic accident, theft and unlawful appropriation, malicious acts, fire, lightning strike, explosion, a fall or impact of an object on the vehicle, natural disasters (storm, flood, hail, avalanche), demonstrations and protests.

Depending on the Casco insurance package you choose, your policy will cover all or some of these risks. The exact meaning of these risks, which situations they cover and the insurance exclusions can be found in the Insurance Terms, which the insurer is obliged to make available to you for review when the insurance is concluded.

It is important to know exactly what your policy covers so that you have no misunderstandings with the insurance company in the event of a loss.

How is the price of the policy determined?

The price of the policy depends on the following parameters:

• The new purchase price of the vehicle
• The chosen insurance coverage (that is, the package you choose)
• Whether the policy is with or without a deductible (the policyholder’s share in the damage)
• The discounts you can get if you have had no claims in recent years and if your third-party liability policy is with the same company where you take out Casco.

What to do in case of damage?

In case of damage from a risk covered by the Casco policy, and especially when the damage is caused by fire, explosion, theft, unlawful appropriation, vandalism or a traffic accident for which the European accident statement used for minor damage cannot be used, you must report it to the police immediately. The police note or report is the best evidence on the basis of which the insurance company will establish grounds for paying the claim, and therefore, except in cases where a European accident statement can be completed, always call the police.

In the meantime, take all measures you are able to in order to prevent further damage and to remove or reduce the damage. You must also report the damage to the insurance company, preferably immediately and at the latest within 3 days of the occurrence of the damage. Do not interfere with the damaged parts until they have been inspected by a representative of the insurance company.

After reporting the damage, you will receive instructions from the insurance company on how to proceed. Most often, after the inspection and assessment by the insurance company, you will be referred to an authorized repair shop to have the vehicle repaired, with the costs covered by the company. If your Casco policy has a deductible, you are obliged to cover that part yourself, up to the amount of the deductible (most often 200 or 400 euros).

It is possible to repair the car yourself or at a repair shop of your choice, in which case the company will offer you a certain sum which, if you agree with the amount, will be paid directly to your transaction account.

What to do in case of total loss or theft?

When the vehicle is stolen or the repair is economically unviable (the repair costs more than the market value of the car), compensation equal to the market value of the car at that moment is calculated, from which the deductible (if any) and the value of the salvaged parts are subtracted.

When are you not entitled to compensation under the Casco policy?

The insurance terms list the insurance exclusions, and it is important that you are familiar with them. Most often these exclusions apply to cases where the vehicle is driven under conditions prohibited by law – that is, under the influence of alcohol, drugs or other psychotropic substances – as well as in the case of war, terrorist acts or nuclear explosion.

What if you sell the car while the Casco policy is still valid?

The rights under the Casco policy are not transferred to the new owner if you sell the car. However, you can terminate the policy when you sell the car, and you are then entitled to a refund for the unused days of the policy. Therefore, if you are buying a used car and the seller highlights holding a Casco policy as an advantage, it is important to know that it will not be transferred to you as the new owner.