Two different policies for one car
Motor insurance in Russia mainly means two policies: compulsory OSAGO (motor third-party liability insurance) and voluntary KASKO (motor own-damage insurance). They are often confused, although they protect different things. OSAGO protects other road users from you; KASKO protects your car from all kinds of trouble.
Key differences
| Parameter | OSAGO | KASKO |
|---|---|---|
| Mandatory | Required by Law No. 40-FZ | Voluntary (a bank may require it) |
| What it protects | Liability to victims | Your car |
| Who receives the payment | The victim of the accident | The owner of the insured car |
| Limit | RUB 400,000 property, RUB 500,000 life and health | Sum insured, usually equal to the car's value |
| Price | Bank of Russia formula | Insurer's own rates |
| Accident caused by you | Repairs to your car not covered | Covered |
| Theft, fire, natural disasters, vandalism | Not covered | Covered if included in the contract |
What KASKO protects against
The set of risks is defined by the contract. Most often these are accidents regardless of fault, theft, fire, natural disasters, falling trees, icicles and other objects, unlawful acts of third parties and glass damage.
The rules always contain exclusions. Typical ones: driving by a person not permitted to drive under the contract or without a driving licence; use of the car outside the territory of cover, in competitions or for driving lessons; military action, confiscation or seizure of the car by order of the authorities.
How KASKO pays for damage
- repair at a service station — at a dealer or a workshop chosen by the insurer;
- a cash payment based on a cost estimate;
- payment for repairs at a workshop chosen by the client — if the contract provides for it.
In the event of total loss or theft, the sum insured is paid subject to the terms of the contract. Some insurers provide a replacement car during repairs.
If another driver is at fault
If you have both policies, you have a choice:
- receive compensation under OSAGO — up to RUB 400,000 and under the OSAGO rules;
- claim under KASKO — the insurer then repairs the car under the terms of your contract and recovers the money from the at-fault driver's insurer or from the driver (subrogation under Article 965 of the Civil Code).
You cannot be compensated twice in full for the same damage. Claiming under KASKO is convenient when the damage is large or the repair has to be done at a dealer.
What to do after an accident if you have both policies
- Register the accident as usual: via the traffic police or with a European accident report if the conditions allow.
- If you are at fault, the victim claims under OSAGO, and you claim repairs to your own car under KASKO.
- If another driver is at fault, decide which policy is more convenient for compensation and file a claim with one insurer.
- Meet the notification deadlines set in the OSAGO law and in the KASKO rules, and keep copies of all documents.
When OSAGO alone is enough
- the car is inexpensive and you are prepared to pay for repairs or the loss of the car yourself;
- you are an experienced driver and the car is kept in a safe place;
- DSAGO is enough as additional protection, raising your liability limit towards others.
DSAGO — the middle option
Voluntary motor third-party liability insurance (DSAGO) does not protect your own car, but it increases the amount the insurer will pay victims above the OSAGO limits. This is useful if you drive among expensive cars: repairing a premium car can easily exceed RUB 400,000, and the victim may claim the difference from the person at fault. DSAGO is sold as a separate policy or as a KASKO add-on and costs noticeably less than full KASKO.
When you cannot do without KASKO
- a new or expensive car;
- buying on credit or leasing — the bank usually requires KASKO;
- a frequently stolen model;
- you are not ready for large expenses after an accident you cause.
KASKO cannot replace OSAGO: even with the most comprehensive KASKO, driving without OSAGO is prohibited.
How to save on both policies
- buy OSAGO and KASKO from the same company — some insurers offer a package discount;
- for KASKO, choose a deductible and a sensible set of risks;
- keep a clean record — it lowers the OSAGO price through the bonus-malus coefficient and is often taken into account for KASKO;
- compare prices from several insurers.
You can estimate both policies in the OSAGO and KASKO calculators; details are on the OSAGO and KASKO pages. Polis Re specialists will help you put together a package — send a request.