Everyone who takes out insurance wants to never know how it works in reality. It would be nice, but unfortunately, things happen. And it's better to know what to expect from your policy. In general, how car insurance works depends on its type. One type of insurance covers the costs of your car. But another type will allow you not to take compensation for third parties out of your pocket.
How does compulsory car insurance work?
It is compulsory insurance that the police always demand. It essentially protects those who have been injured in an accident. To put it simply, such insurance will cover the costs of the person who is at fault for the accident. That is, the insurance will pay for treatment, repairs and similar expenses, not the culprit.
Such insurance is mandatory, and you cannot drive without it, just as you cannot drive without a license or registration certificate. At the same time, such a policy will help you save money, because you will not need to compensate for losses out of your own pocket. The main thing in this situation is to know the detailed actions in case of an accident and strictly follow them.
In practice, when an accident occurs, the culprit only needs to write a statement that an accident has occurred. Naturally, then he will not have to compensate for anything. His insurance company takes care of all this.
But in order to make payments, the insurance company must receive all the certificates, information and court decisions. And here is an important point: where to submit the documents? Best of all, to the culprit's insurance company. But if a direct settlement document is signed, you can submit documents to yours. Then they will pay the money, and then the at-fault party's insurance will compensate them for everything. However, not all insurance companies can do this yet.
How does voluntary CASCO insurance work?
Unlike compulsory insurance, CASCO is voluntary. It allows you to receive compensation for damage to your car in case of emergency. At the same time, payments will be made regardless of whether the driver is at fault or not. But there is a caveat: payments will be made only for the car. Life and health insurance is a completely separate story.
So, you can receive payments if the following happened to the car:
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theft
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theft of parts;
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arson;
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damage due to an accident.
In general, you can safely use your car without CASCO, because it is not required by the police. It is simply a guarantee that you will be able to repair your car at the expense of the insurance company. You can choose the method of receiving payments in the contract. Usually, these are payments to the card, or immediately at the service station.