Why KASKO prices differ

Unlike OSAGO (compulsory motor third-party liability insurance), KASKO (motor own-damage insurance) rates are not set by the Bank of Russia. Each insurance company determines its own calculation method, so the same car can cost different amounts to insure. But the set of factors is similar everywhere — understanding it makes it easier to choose a good offer.

The car

  • Value. The more expensive the car, the higher the sum insured and the premium.
  • Make and model. Theft and claims statistics for the model, the cost of parts and the labour rate are taken into account.
  • Age. For new cars the rate is lower as a percentage but higher in roubles; for older cars insurers restrict the programmes available.
  • Anti-theft devices. A satellite alarm or tracking tag may lower the price or be mandatory for frequently stolen models.
  • Loan or lease. The bank usually requires full KASKO with dealer repair, which costs more.

The drivers

  • Age and experience. Young drivers with little experience are a higher-risk group.
  • Number of drivers. A policy with no restriction on drivers costs more.
  • Insurance history. Many insurers take into account KASKO claims history and the OSAGO bonus-malus class.

Contract terms

  • Set of risks. Full KASKO costs more than partial and mini KASKO.
  • Deductible. The most effective way to lower the price.
  • Form of settlement. Dealer repair costs more than repair at a workshop chosen by the insurer; payment without wear and tear costs more than with it.
  • Sum insured. An aggregate sum is cheaper than a non-aggregate one.
  • Add-ons. GAP, towing, a replacement car and DSAGO increase the premium.
  • Region. Rates are higher in large cities because of traffic density and car theft.
  • Payment method. Paying in instalments sometimes costs more than a single payment.

Why the price changes at renewal

Even without accidents, the cost of KASKO may rise at renewal. The main reasons are higher prices for parts and repairs, changes in theft statistics for the model and revisions of the insurer's rates. On the other hand, the car loses value every year, so the sum insured falls, and a claim-free year often earns a discount. So before renewing, it is worth requesting offers from several companies rather than agreeing to an automatic renewal.

How to save on KASKO legitimately

Choose a deductible

An unconditional deductible of an amount you are prepared to pay yourself noticeably reduces the cost. Minor scratches are often cheaper to fix yourself anyway, so as not to lose your no-claims discount.

Limit the list of drivers

If the car is driven by one or two experienced drivers, there is no point paying for unrestricted access.

Accept repair by referral

For cars whose warranty has expired, repair at the insurer's partner workshop is a reasonable compromise between price and quality.

Consider KASKO 50/50 or mini KASKO

For careful drivers and cars more than a few years old, cut-down programmes provide the core protection for less money. More in our article on KASKO programmes.

Use telematics

Some insurers give a discount if you agree to have your driving style monitored through an app or a device.

Compare offers

The price difference between companies on comparable terms can be significant. Compare not only the total but also the rules: exclusions, payment deadlines, document requirements.

Checklist before buying a policy

  • Is the correct sum insured stated in the contract — neither above nor below the car's real value?
  • What is the deductible, and which risks does it apply to?
  • How is the payment calculated: with or without wear and tear?
  • Is the sum insured aggregate or non-aggregate?
  • What are the requirements for anti-theft systems and parking?
  • What deadlines for claims and payments do the rules set?
  • Are there partner service stations of the insurer nearby?

Where not to cut corners

  • on the "Theft" risk for frequently stolen models;
  • on GAP if the car is new and bought on credit;
  • on truthful information in the application: hiding information about drivers or use of the car as a taxi may be grounds for refusing a claim.

Estimate the cost in the KASKO calculator or send a request — Polis Re specialists will compare offers from several insurance companies and explain the differences in terms.