Currently, there is a compulsory insurance for all car drivers. However, there are several additional services for car insurance that can fully compensate for the damage not only to the victim of an accident but also to his culprit. This may happen if he is the holder of all or almost all of the driver’s financial protection policies. What types of additional car insurance exist today? What are their similarities and differences? In this article, we will answer these questions.
Compulsory Car Insurance
The most popular and ubiquitous because of its obligatory nature is compulsory insurance. This insurance policy is not a mechanism for compensation of damage to the car of the insured. It is an exclusive financial protection tool for the car owner in case he becomes the culprit of the accident. In this case, the insurance company compensates the victim for damage. The culprit of the accident pays the difference between the real amount of damage and the amount paid under the motor third party liability insurance policy at his own expense.
Voluntary Insurance
This type of insurance is voluntary and does not require mandatory registration. In essence, it is not an independent type of insurance, but an extension of the capabilities of the mandatory insurance described above. Here, as in the first case, it is not the car that is insured, but the civil liability of its owner. A significant increase in the amount of compensation is especially relevant in light of the emergence of a large number of expensive cars on public roads.
Voluntary insurance is issued in conjunction with the CTP insurance policy, which slightly increases its cost. Surcharge for expanding the possibilities of financial protection of civil motor liability is from one to four times more, depending on the maximum possible amount of compensation, as well as on those factors that affect the cost of the compulsory insurance policy.
CASCO Insurance
The principal difference between CASCO and the types of insurance described above is that in this case, it is not a civil liability that is manifested in compensation for damage caused to third parties. It is manifested in compensation for the damage caused directly to the vehicle of the insured. It does not matter if the policyholder is responsible for the accident or not. As a rule, an insurance company can refuse to pay CASCO only if the driver was drunk during the accident.
It is worth noting that CASCO is not a replacement for compulsory insurance, but is done together with it. CASCO does not cancel the need for compulsory motor third-party liability insurance. The cost of the CASCO policy can vary significantly because the insurance company itself determines the cost of insurance under this system. Therefore, it is essential to choose a car insurance company in a smart way. The roadside assistance service provides great conditions for CASCO policies. Moreover, in addition to the subjective desire of the insurer, the following factors affect the cost of the policy:
- Car price;
- The cost of spare parts;
- Driving experience;
- The frequency of thefts of similar cars and the frequency of their participation in accidents.
You may also call your Richmond VA personal injury lawyers for more information.