Saving on KASKO

The culture of car insurance here is only just developing. It's enough to recall that not long ago such an important thing as Mandatory Motor Third Party Liability Insurance (OSAGO) was a rarity, and few people could boast of having an OSAGO or KASKO policy.

But thanks to the development of the car market and banks that require cars to be insured, the insurance market is growing rapidly.

In our country few people yet know that by taking out KASKO with a deductible you can significantly save on car insurance. Of course, this option is not suitable for all drivers. But for many it will be the optimal insurance choice.

The specifics of the Russian insurance market are such that most KASKO policies sold are issued without a deductible. But in Europe it's quite the opposite. A rare insurer will offer you insurance without a deductible. In England, for example, the deductible most often ranges from £100 to £450. The secret of the deductible's popularity among insurance companies is that it reduces the number of customer claims related to minor damage. After all, compensating for scratches or small dents can be quite costly for insurers. The deductible also reduces the workload on insurance company staff.

But what advantages does KASKO with a deductible bring to car owners, since at first glance they seem to be at a loss? The point is that the larger the deductible, the cheaper the insurance. For example, a deductible equal to 1 percent of the KASKO value can bring a 10% saving. If you choose a deductible of 4–8%, the savings on KASKO will be around 30–70%.

It sounds quite tempting. But what are the drawbacks of this method of insurance? Many people are convinced that the deductible is another loophole for insurance companies to avoid payments and compensation. But that's not the case. A deductible is, first and foremost, your responsibility. If an accident occurs, you will receive the full compensation provided minus the deductible. But if you absentmindedly scratch your car on a curb, there will be no compensation.

But if you drive for a long time without accidents, why overpay? After all, an OSAGO policy and full KASKO without a deductible are attractive for beginners who are just learning to drive. For more experienced drivers, the combination of OSAGO and KASKO with a deductible is much more advantageous.

You can easily determine the maximum deductible for you by calculating the amount of damage you can pay for yourself without much effort.