The key difference in one sentence

OSAGO (compulsory motor third-party liability insurance) protects others from you, while KASKO (voluntary insurance of your own vehicle, similar to comprehensive cover) protects your car. They are different products, and one does not replace the other.

OSAGO: the compulsory minimum

Compulsory insurance of vehicle owners' civil liability operates under Federal Law No. 40-FZ. You cannot drive without a policy: driving without OSAGO is punishable by a fine under Article 12.37 of the Code of Administrative Offences.

If you cause an accident, your OSAGO insurer compensates the victims:

  • up to RUB 400,000 for damage to property (a car, a fence, etc.);
  • up to RUB 500,000 for harm to the life and health of each victim.

OSAGO does not pay for repairs to your own car if you are at fault. The premium is calculated using the Bank of Russia formula: the base rate is multiplied by coefficients for region, bonus-malus, age and experience, engine power and others. You can work out the price in the OSAGO calculator.

KASKO: protecting your own car

KASKO is voluntary vehicle insurance. Its terms are set by each insurer's rules, so policies from different companies vary noticeably. The main risks:

  • Damage — in an accident (including one you caused), from falling objects, natural events, fire, or third-party actions.
  • Theft — the car being stolen.
  • Total loss — when repair is not economically viable.

You can also add GAP cover (the difference between the insured value and the market or loan value), towing, an accident assessor, and cover for additional equipment.

Who can manage with OSAGO alone

  • Your car is not new, and paying for repairs after a minor accident will not strain your budget.
  • You are prepared to risk the value of the car in case of theft or total loss.
  • The car is not on credit or lease — banks and leasing companies usually require KASKO.

When KASKO is a must

  • A new or expensive car that costs a lot to repair.
  • A car loan or lease — it is a condition of the agreement with the bank.
  • The model is among those frequently stolen.
  • You have little driving experience and the car is used daily in heavy city traffic.

How to save on KASKO

Deductible

A deductible (franshiza) is the part of the loss you pay yourself. An unconditional deductible of a few tens of thousands of rubles noticeably lowers the premium, and you often fix minor scratches without contacting the insurer anyway.

Mini-KASKO

Reduced programmes cover, for example, only accidents where the other party is at fault, only theft and total loss, or cap the payout. It is a compromise between price and protection.

Repairs at the insurer's partner garage

Repairs at a garage chosen by the insurer are usually cheaper than at an official dealer. For a car older than 3–5 years, the difference in premium can be substantial.

A limited list of drivers

As with OSAGO, drivers' experience and age affect the tariff. If the car is driven by experienced drivers, name them in the policy.

What to add to OSAGO if KASKO is too expensive

  • DSAGO — voluntary extension of the liability limit above RUB 400,000. Useful if you often drive among expensive cars.
  • Personal accident insurance for the driver and passengers — a payout for injury in an accident regardless of fault. See the Accident insurance section.

If you have both policies

In an accident that is not your fault, you can choose where to claim. Under the at-fault driver's OSAGO (or with your own insurer under direct loss settlement), you receive a repair or payment of up to RUB 400,000 without affecting the cost of your KASKO. Under KASKO, settlement is often faster and without deduction for wear, and the insurer then recovers the loss from the at-fault party. If you are at fault, OSAGO compensates the others, and KASKO pays for your car under the "Damage" risk.

Practical tips

  1. Buy OSAGO first — it is mandatory. Then decide whether you need cover for your own car.
  2. Compare KASKO offers on the same parameters: deductible, form of compensation, list of drivers.
  3. Read the exclusions: driving without a licence or under the influence, documents and keys left in the car, a faulty anti-theft system.
  4. Check how the sum insured is determined during the year — some policies reduce it as the car depreciates.

More about the products in the OSAGO and KASKO sections. You can estimate the cost of KASKO in the calculator.