For many people a car is not a luxury but a working tool: they use it to commute, deliver goods and serve customers. Yet repairs after a serious accident or a theft can cost as much as the car itself. OSAGO — compulsory motor third-party liability insurance — will not help here: it covers the harm you cause to others. Only KASKO protects your own vehicle.

What KASKO is

KASKO is voluntary insurance of a vehicle against damage, destruction and theft — the Russian equivalent of comprehensive own-damage cover. It is governed by Chapter 48 of the Civil Code of the Russian Federation and by the insurance rules of the specific company. Rates are not set by the state: each insurer prices the risk itself, so offers from different companies for the same car can vary considerably.

What the policy covers

  • "Damage" — damage to or destruction of the car in a road accident, fire, natural disaster, from falling objects or as a result of unlawful acts by third parties.
  • "Theft" — the car being stolen or taken without consent.
  • Full KASKO — "Damage" and "Theft" combined.

You can add to the basic cover: additional equipment, GAP insurance (the difference between the sum insured and the price of a new car or the outstanding loan), personal accident cover for the driver and passengers, voluntary third-party liability above the OSAGO limits, towing and an accident assessor. There are also programmes with limited cover — for example, only for accidents where another driver is found to be at fault: they are cheaper but offer less protection.

Sum insured

Under Article 947 of the Civil Code, the sum insured may not exceed the actual value of the property. Pay attention to two parameters:

  • Aggregate or non-aggregate sum. With an aggregate sum, each payment reduces the remaining limit; with a non-aggregate sum, the limit is restored after each claim.
  • Reduction during the year. Many insurance rules reduce the sum insured as the car is used. A non-reducing sum costs more, but the payout for a total loss or theft will be higher.

If the car is insured for less than its value, a partial loss may be paid proportionally under Article 949 of the Civil Code, unless the contract provides otherwise.

Deductible

A deductible (franchise) is the part of the loss the owner pays themselves. It noticeably lowers the price of the policy.

  • Unconditional — deducted from every payment.
  • Conditional — a loss below the deductible is not paid, a loss above it is paid in full.
  • Dynamic — the first claim has no deductible, subsequent claims do.

A deductible suits careful drivers who are prepared to pay for minor scratches themselves and buy KASKO to protect against serious damage and theft.

Repair or cash

The form of settlement is set in the contract in advance:

  • repair at an official dealer's service station — usually for new cars and the most expensive option;
  • repair at a service station chosen by the insurer;
  • a cash payment based on the insurer's calculation — check whether wear and tear on parts is taken into account.

Total loss

If the cost of repair exceeds the threshold set in the insurance rules, the car is declared a total loss. Usually the owner can choose: keep the salvage and receive the payout minus its value, or hand the car over to the insurer and receive the full sum insured — subject to the terms of the contract.

Common exclusions and reasons for refusal

  • driving under the influence or without a driving licence;
  • a driver not named on a policy with a restricted list of drivers;
  • keys or registration documents left in the car when it was stolen;
  • using the car as a taxi or for car sharing if this is not stated in the contract;
  • failure to meet the requirements for the anti-theft system;
  • late notification of the insurer.

What drives the price

  • make, model, year and value of the car, theft statistics and repair costs;
  • age and driving experience of the drivers, and their number;
  • region of use and where the car is kept;
  • deductible, form of settlement and add-ons;
  • claims history under previous contracts.

For company fleets, the price also depends on how the vehicles are used, the drivers' qualifications and the loss ratio across the fleet.

The policyholder's rights

  • Cooling-off period. An individual can cancel a KASKO contract within 14 calendar days of signing and get the premium back if no claims have occurred.
  • Financial ombudsman. For disputes over payments of up to 500,000 rubles, an individual must first apply to the financial ombudsman — this is free and mandatory before going to court.

You can compare offers from different companies with the KASKO calculator; the terms are described in the KASKO insurance section. Do not forget the compulsory OSAGO policy, and for companies — fleet insurance.