CASCO car insurance: what it covers and how to choose the terms

CASCO is voluntary insurance against damage to, destruction or loss of a car following events specified in the contract. Its purpose is to help the owner meet restoration costs or the financial loss of losing the vehicle when an insured event occurs. The scope of protection depends on the chosen programme, so two offers labelled “CASCO” do not necessarily have identical terms.

A policy can also be useful to a careful driver: not every loss results from their mistake on the road. A car may be damaged while parked, by hail, fire or other people’s actions. Check in advance which of these events your particular contract includes.

What does CASCO insure?

The protection centres on the car itself and the financial interest in preserving it. The contract identifies the vehicle, sum insured, risks, period and territorial scope. Additional equipment, special finishes, protective film, baggage and personal belongings should not be assumed to be automatically included: separate agreement and descriptions may be needed.

Insuring the car does not mean that the driver’s or passengers’ life and health are insured under the same policy. For these needs, check the relevant additional cover or separate contracts.

CASCO and compulsory motor liability insurance: different purposes

Example: you cause a collision in which two cars are damaged. Compensation to the injured party is considered under liability insurance, while repairs to your own car are considered under CASCO if the event is covered and the conditions are met. CASCO does not replace compulsory motor liability insurance.

A driver being at fault does not by itself mean CASCO cannot apply: the relevant cover may be available. Equally, it would be wrong to promise payment “regardless of fault and in every circumstance”; contract exclusions must be considered.

Which risks can be included?

Depending on the programme, insurance may provide for the following events:

This is a guide for choosing cover, rather than a universal list of insured events. The particular contract determines definitions, payment conditions and exclusions.

Names such as “full CASCO”, “light” or “express” do not explain the cover by themselves. One product may include a broad range of events, another only certain accidents or a limited set of risks. Compare the substance rather than the marketing name.

Sum insured: which value is used for protection?

The sum insured is the amount for which the car is insured and is related to the limits of the insurer’s obligations. When arranging cover, establish how the vehicle is valued and which rules apply to partial damage, total loss or loss of the car.

Do not choose an understated amount solely to reduce the price without understanding the consequences. With underinsurance, a contract may provide for proportional settlement. Ask whether this applies and how a payment would be calculated in your case.

Check whether the available sum insured reduces after a claim payment and whether it can be reinstated. For a financed or leased car, establish who is named as the beneficiary and how repairs or payments are approved.

Deductible: which expenses remain with the owner?

A deductible is the contractual portion of a loss that the insurer does not reimburse. It may be a fixed amount or a percentage. Check the calculation base carefully: a percentage of the sum insured and a percentage of the loss produce different results.

Terms for damage, theft and total loss may differ. Also establish whether the deductible applies to each event and whether special rules apply in particular circumstances.

Repairs or cash: how is damage compensated?

A contract may provide for repairs at an agreed workshop or a cash payment. Before buying, ask who chooses the repairer, how the estimate is approved and whether depreciation of parts is taken into account. For a new car, clarify separately whether repairs at an authorised dealer are available.

A total loss is calculated differently from an ordinary repair. Check the threshold for declaring a total loss, treatment of salvage, applicable deductible and other terms. Payment does not necessarily equal the car’s original purchase price.

Ask a question using a specific example: “The headlight and bumper are damaged. Who assesses the loss, which workshop receives the car, which parts are provided for and what do I pay?” A clear answer helps you compare products by their future claims arrangements.

Which conditions should you check before taking out cover?

• Authorised drivers. Is there a named list or restrictions on age, experience and entitlement to drive?
• Territory. Where does protection apply, and does travel abroad need approval?
• Vehicle use. Are taxi work, deliveries, rental, business journeys or other actual uses covered?
• Inspection and commencement. Are photographs, inspection and steps after payment required? Exactly when does cover begin?
• Storage and anti-theft devices. What requirements apply to parking, keys, documents and equipment?
• Payment arrangements. How do instalments or an unpaid instalment affect cover and claims settlement?
• Notification and documents. When must an event be reported, which authorities must be contacted and how must the car be presented for inspection?

What might not be covered?

CASCO is not a guarantee that every repair will be paid for. Programmes may exclude natural wear, corrosion, mechanical faults, pre-existing damage, use outside agreed conditions and other circumstances.

Check separately the consequences of driving while intoxicated, lacking the required entitlement to drive, allowing an unlisted driver to drive and failing to fulfil contractual duties. Damage solely to tyres or wheels, lost keys, engine damage from water ingestion and carriage on another vehicle may have special conditions or be outside the programme.

Do not apply one insurer’s restrictions to the entire market. The right approach is to request the current rules and policy, locate the situation that matters and obtain clarification before paying.

Why is CASCO important to an owner?

A car is a significant part of household or business property. An unexpected repair creates two tasks: finding the money and restoring use of the vehicle. CASCO helps make the covered portion of costs more manageable, although it does not eliminate every expense or inconvenience.

Its practical value is especially evident when losing the car or facing major repairs would substantially affect the budget. For a fleet, consistent terms for authorised drivers, vehicle use and claims handling also matter. For a pledged car, the lender’s requirements and beneficiary’s rights need to be coordinated.

Assess suitability against your own reserve: how much could you spend without compromising essential expenses? Then compare programmes by protection, deductible and repair arrangements. A low price does not always mean good value if an important risk is excluded.

What should you do if the car is damaged or lost?

1. Ensure safety. Contact emergency services if anyone is injured or life is at risk. Follow applicable rules for conduct at the incident scene.
2. Contact the insurer. Use the policy contact details, report the circumstances and clarify the next steps.
3. Record the event. Where safe and permitted, photograph the car, damage and surroundings. Document the incident through the required procedure; do not assume contacting the competent authorities is optional without checking the rules.
4. Agree on inspection and movement. Clarify towing, storage and assessment. Do not start repairs or dispose of damaged parts before approval, except for necessary safety and loss-reduction measures.
5. Submit the claim and documents. Meet your contract’s deadlines and keep proof of submission.

The availability of simplified procedures or reporting without particular certificates must be checked against the specific programme and circumstances. There should be no universal promise that “every claim can be handled without documents”.

What determines the price of CASCO?

The calculation may depend on the car’s value, make, model and age, selected risks, deductible, period and territory, driver information, vehicle use and other programme factors. A single percentage for all vehicles therefore does not reflect actual offers.

Request options on comparable terms: the same car, sum insured, risks, drivers and territory. Then compare exclusions, repairs, depreciation and deductibles. This sequence helps explain the price differences.

Choose CASCO as a contract providing specific protection for your car. Before arranging it, prepare vehicle, driver and usage information and decide which risks and deductible suit your needs. The “Auto” section of Polis24.kz provides articles to help you understand motor insurance and compare terms with confidence.