Reading time: 9 minutes
Most of our compatriots buy cars using funds borrowed from the bank. The purchased vehicle (vehicle) acts as an object to ensure the protection of the financial interests of banks. At the same time, many financial institutions require CASCO insurance for credit cars. This policy has its own characteristics. Let's try to figure it out.
What is CASCO insurance?
First of all, you need to know that CASCO insurance is carried out on a voluntary basis. By purchasing such a policy, the car owner pays an amount equal to a set percentage of the cost of the vehicle. If the loaned car is stolen or damaged, the insurance company will pay for the damage.
There are two types of CASCO insurance:
- Complete. This type of policy applies to a combination of the risks “Theft”, “Damage” and “Theft”.
- Partial. This type of insurance provides protection only against damage caused to the car.
Why does the bank require a CASCO policy for a credit car?
A car purchased using funds loaned by a financial institution acts as collateral. The main reasons prompting banks to require the borrower to insure the vehicle under CASCO are the following:
- Ensuring money back. If the policy is issued for all risks, the insurer will compensate for the losses.
- For the bank, this insurance acts as an additional guarantee of the safety of the pledged car.
- If an accident occurs, the borrower will be able to continue to repay the loan on time, since the cost of repairs will be covered by insurance payments.
- In the event of theft or complete loss of a vehicle, the debt on the car loan is first covered, and the remaining part of the compensation is transferred to the policyholder.
- Increasing the profitability of the loan portfolio. We are talking about cases when a citizen, purchasing a car on credit, plans not to pay for CASCO from his own savings, but to buy a policy also using borrowed funds. This scheme occurs quite often.
But purchasing a CASCO policy is also beneficial for the borrower. He will be able to repay the debt to the financial institution in the event of an insured event at the expense of the insurance company. Still, car owners are wondering whether it is possible to refuse CASCO when buying a car on credit. The reason is that force majeure circumstances cannot be excluded. For example, a client paid insurance premiums on time, but when an insured event occurred, he was faced with the fact of bankruptcy of the counterparty insurer. Then he will have to solve problems with the creditor and the car at his own expense.
Is it necessary to purchase a CASCO policy for a car loan?
According to the norms of current legislation (Part 10, Article 7 of Law No. 353-FZ), the lender has the right to demand that the borrower insure the collateral property against the risks of damage and loss. Therefore, under this condition, the bank’s answer to the question of whether CASCO is mandatory for a car loan is affirmative. In this case, the principle of voluntariness fades into the background. Based on the above regulatory act, as well as paragraphs. 1 clause 1 of Article 343 of the Civil Code of the Russian Federation, a financial organization may make a negative decision on providing a car loan if the applicant refuses to insure the car under CASCO.
CASCO conditions for credit cars
It was said above that such insurance can be full or partial. Therefore, many borrowers are interested in what CASCO is needed for a car loan. The nuances are important here. To carry out car repairs, the need for which arose as a result of an insured event, the borrower receives compensation. If there is a constructive loss of the car, its theft or theft, the insurance payment will be sent to the bank.
A financial institution usually requires the borrower to take out insurance for a full package of risks, since the possibility of breakdowns, theft, and complete loss of the pledged vehicle during its operation cannot be excluded.
Let us briefly consider other conditions of CASCO insurance.
Limiting the choice of insurance companies
When drawing up a car loan agreement, a financial institution often deprives the borrower of the right to choose an insurer. In this case, the client will be offered a list of organizations of this profile accredited by the bank, providing the best insurance conditions. Of course, from the lender's point of view.
If the policy is issued by a “foreign” insurance company, it may not be accepted: the client will be forced to take reinsurance, or, if CASCO and a credit car are inseparable concepts in most cases, they will simply refuse to provide a loan for the purchase of a car. But the FAS (Federal Antimonopoly Service) interprets such actions as an imposition of services, which is contrary to the legal norms in force in this area. Therefore, this government organization often initiates cases against banks for violating the legislation in force in this area. If you decide to contact the FAS, remember that it is possible to prove your case, but it is quite troublesome. It is easier and often cheaper to use the services of an insurer accredited by a bank.
Validity of the CASCO insurance policy for a credit car
Everything is quite simple here.
The CASCO insurance contract must be valid throughout the entire period of the car loan.
This condition stipulates that the car owner is obliged to insure the car for the entire loan term. Otherwise, the bank will have the right to apply penalties. It is possible that he will demand to repay the debt ahead of schedule.
Anti-theft system requirement
Special insurance conditions often include mandatory equipping of the vehicle with a security alarm system. Moreover, her choice is often limited to a list developed by the insurer’s employees.
Requirements for the degree of protection differ depending on the value of the car. Expensive models must be equipped with highly sophisticated anti-theft systems. And for cheaper vehicles, the standard configuration of car alarm components is also suitable. Some companies refuse to insure a car on a loan if it is not equipped with a satellite anti-theft system, supplemented with other devices of the corresponding functionality.
Checking vehicle storage conditions
Insurance companies sometimes require that they be given the opportunity to check the storage conditions of the vehicle. In particular, make sure that the car owner has:
- garage;
- secure parking space.
A clause may be added to the contract stating that theft of a car from an unguarded parking lot does not apply to insured events. However, its legality is questionable, and courts interpret this approach ambiguously. Typically, the presence or absence of a garage or parking lot affects the amount of the insurance premium.
Who is the beneficiary
As a rule, the beneficiary of credit car insurance is the bank. That is, insurance payments are transferred to the financial institution.
However, the car owner can stipulate in the contract that in case of complete constructive loss of the vehicle and its theft, the bank is the beneficiary, and if other insured events occur, the policyholder will acquire this status.
In this case, if the car is damaged to 80% of its value, the car owner who is faced with an unpleasant situation will receive insurance payments for the “Damage” risk.
Registration of a CASCO policy for a credit car
According to current legislation, the bank does not have the right to oblige the client to purchase insurance of this type after purchasing a vehicle. That is why registration of CASCO for a credit car is an independent clause in the loan agreement, which the client signs before the purchase and sale of the car.
To purchase an insurance policy of this type, you must submit certain documents to the insurer. Standard package includes:
- Application in writing on the insurance company's letterhead. It must contain reliable information not only about the future owner of the vehicle, but also about the persons who will be allowed to drive the car.
- Car owner's passport.
- Driver's license. This document is also provided by drivers authorized to drive a vehicle.
- The policyholder's passport and power of attorney to carry out the insurance procedure, if the vehicle is not his property.
If the insurance policy is purchased at a car dealership
The package of documents in this case is the same (see above). Actually, the procedure is performed according to the standard scheme:
- An application is submitted.
- The decision of the Investigative Committee is made.
- Insurance is paid.
- A CASCO policy is issued.
However, executing an insurance contract at a car dealership has the following disadvantages:
- Limited selection of companies. You can buy a CASCO policy from a car dealer only from a small number of companies operating in this segment of the Russian financial market. Yes, and you won’t be able to quickly find out the IC rating at a car dealership. Taking into account the numerous bankruptcies of insurance companies recently, there is indeed a risk of losing money.
- Inflated prices. We are talking about a disproportionate relationship between the cost of CASCO and the list of services provided. The more items this list contains, the higher the security of the credit car. Remember, a car dealership employee is interested in selling a package of services to the insurer that pays him more for his work. Therefore, the client will be offered CASCO insurance from a specific company with a specific set of options.
- Lack of qualified specialist. Insurance and vehicle sales are two different things. In a car dealership, as a rule, the client comes into contact with an ordinary salesperson, whose qualifications in the field of insurance are not always high. Without being convinced of the profitability of a seemingly trifle, the car owner risks losing a significant amount in the event of an insured event.
- No bonuses. For example, the client may not know that he can count on an insurance discount for accident-free driving. Such promotions are usually informed at the offices of the Investigative Committee.
You can often hear from car dealership employees that you can only buy CASCO for a credit car at the place where it was purchased. But this is cunning: the insurance contract must meet the requirements of the financial organization in which the loan was issued. Therefore, it is recommended to choose insurance companies accredited by banks.
Purchasing a CASCO policy for the second and subsequent years
Many car owners are interested in whether they need to do CASCO insurance every year. They consider the requirement to purchase such a policy only as a formal basis for concluding a car loan agreement. However, this is not true. As already noted, insurance must be valid throughout the entire loan term. If this condition is not met, the bank and car dealership may impose sanctions. Up to the confiscation of the vehicle. Therefore, it would be wise to extend CASCO insurance for a second year.
In addition, the incentive to purchase such a policy is to exclude other possible major financial losses. For example, in the event of a car theft or an accident, the car owner will bear the losses, and no one will compensate for them. At the same time, the situation will be aggravated by the need for correct loan servicing.
It is important to note that drivers who have distinguished themselves by accident-free driving during the first year of the insurance contract can count on a significant discount on CASCO insurance. And not only in the second, but also in the third year - until the debt on the car loan is fully paid off.
Each insurer sets the discount amount at its own discretion, but on average it is 10-15%.
Many insurance companies provide a discount even if the client switches from another insurer. Of course, the fact of absence of insurance payments must be documented.
In general, if the insurance contract is not renewed, the borrower can repay the car loan early to eliminate additional unnecessary expenses. In this case, he will receive a financial benefit in the form of a refund for the unused insurance period. To do this, you need to write a corresponding application.
Cost of CASCO insurance policy for credit cars
The CASCO price for a credit car depends on:
- Make, model and type of selected vehicle. Insuring an imported car will cost less than cars from the domestic auto industry. In addition, even without knowing how CASCO is calculated, it is intuitively clear that the cost of such a policy for a used car will be higher than for a new one, since used vehicles will need to be repaired more often.
- Client's age and driving experience. Young people are more prone to risks, so insurance conditions for car owners in this category are more stringent. The longer the experience, the more favorable the insurance conditions will be.
- The number of insurance cases recorded recently (this issue was discussed above).
The cost of CASCO for a new car, taken on credit, or for a used car, purchased with borrowed funds, is determined based on the results of the assessment procedure performed by a licensed company. This takes into account the wear and tear of the vehicle. For example, if at the end of the year in which the CASCO policy was issued, a bumper was damaged in an accident, compensation to the client will be paid within the cost of this part minus its wear and tear.
Why is CASCO insurance for credit cars more expensive?
As statistics show, the price of CASCO for a credit car is higher than the cost of similar vehicle insurance purchased using your own savings. Experts identify the following reasons:
- Insurance companies cooperating with banks include remuneration for the credit institution in the cost of the CASCO policy.
- Banks strive to protect the collateral car as much as possible by establishing maximum insurance coverage.
- Limited competition among insurers. Credit institutions insist on seeking services from insurance companies accredited by them. As a rule, there are few of them. Having become a monopolist in its region, the insurer increases rates.
If there is a franchise
Insurance with a franchise provides that after the occurrence of an insured event, part of the cost of compensating for damage to the vehicle is borne by the client. Due to the fact that the insurance company does not fully and not always compensate for the damage, the price of the CASCO policy in this case is significantly reduced.
Is it possible to reduce the cost of car insurance?
There are several ways to reduce the financial burden of insuring a car purchased with borrowed funds. The first is to apply for CASCO insurance for the full cost of the vehicle. After all, in the event of an insured event, the beneficiary is the bank, for which the main thing is to return the loaned funds.
The second option involves significant loss of time. We already know that antitrust laws prevent banks from imposing the services of specific insurance companies. Therefore, the borrower has the right to choose an insurer that is not on the list of organizations of this profile recommended by the bank. The company will be carefully checked by specialists from the financial institution. If a non-compliance with the bank's requirements is detected, it will be impossible to use the services of this insurer.
Cheap CASCO insurance for a credit car can also be implemented through underwriting. It consists in the fact that certain insured events or risks are removed from the contract. A specialist with extensive experience in this field will be able to perform this task efficiently, the cost of whose services, of course, is considerable. But the amount of insurance premiums will definitely be reduced.
Is it possible to purchase a CASCO policy on credit?
The answer to this question sounds affirmative. Such a program is developed jointly by the bank and insurance companies that are its partners. The scheme is quite simple: insurance premiums are included in the total volume of car loans. The main thing is to make payments on time. If the next payment was missed, upon the occurrence of an insured event, the insurance company has the right to refuse compensation for losses.
Advantages of having CASCO insurance for a credit car
The advantages of having a CASCO policy issued for a credit vehicle include the following:
- banks are willing to reduce the rate under the loan agreement (sometimes even by 9% per year);
- if a CASCO policy is issued, financial institutions agree to extend the loan term;
- for the car owner-borrower, the amount of the advance payment is significantly reduced (often down to 10%).
Is it possible to take out a car loan without CASCO registration?
Today, a limited number of banks offer to take out a car loan without CASCO, but their number is growing rapidly. And although the terms of loans of this type may differ, in general, a car owner needs to be prepared for:
- quite high percentages;
- impressive down payment;
- reduction of loan terms (under programs without CASCO of some banks, the period of the loan agreement is only 2 years).
From the last point it is clear: if you do not apply for CASCO for a credit car, the amount of monthly payments will increase significantly. Moreover, the burden on the car owner’s budget may become comparable to the option when such a policy was purchased and insurance premiums are required.
In addition, without CASCO insurance in case of an accident, the culprit will have to compensate the damage to the injured party at his own expense.
Conclusion
Having decided to insure a car purchased on credit under CASCO, you should not opt for the first, even profitable, offer from the insurer. By taking its terms as a basis, it is possible that you will be able to find a more attractive option to ensure your financial security. It is necessary to consider not only the cost of the policy. For example, everyone knows that the price of a vehicle decreases every year. Therefore, concluding a car insurance agreement for the entire loan period at a single rate is unprofitable. It will be cheaper to reissue CASCO insurance for each subsequent year.
Registration of CASCO for credit cars: video
A large number of people purchase their cars on credit. This allows you to buy new equipment by investing a minimal amount of money at once. Banks offer two lending programs: car loans and consumer loans, which are very different from each other.
Dear readers! The article talks about typical ways to resolve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:
APPLICATIONS AND CALLS ARE ACCEPTED 24/7 and 7 days a week.
It's fast and FOR FREE!
A consumer loan is issued at a higher rate, and a car loan requires additional mandatory CASCO insurance.
What is voluntary insurance
CASCO is insurance of the car owner against various unpleasant situations.
The insurance policy provides payments in the following situations:
- theft of an insured car;
- repair of damage resulting from a road accident;
- car repair in case of emergencies: falling icicle, tree, stone hit, and so on.
The main advantages of the CASCO policy are:
- payment of the insured amount in any situation: damage received in a parking lot, proven guilt in a traffic accident;
- You can receive payments during the entire period of validity of the insurance policy;
- protection of the owner in case of theft.
The disadvantages of the insurance policy include:
- high cost of the policy;
- inability to insure a car whose age exceeds the permissible standards;
- the need to register all incidents through traffic police officers or other law enforcement agencies.
Receives by the owner of the vehicle. This aspect is the main difference between the policy in question and compulsory insurance (MTPL).
However, in a situation where a car is purchased on credit, the recipient of payments in the event of theft is the organization that issued the money for the purchase of the technical equipment.
The cost of an insurance policy depends solely on the chosen insurance company.
In this case, the state does not have the right to establish any restrictions, unlike compulsory motor liability insurance.
The value of the policy is influenced by such factors as the deductible. A deductible is a certain previously agreed amount that reduces the insurance payment. For example, a CASCO agreement implies the presence of a franchise in the amount of 5,000 rubles.
The cost of the insurance policy will decrease by approximately 4% - 5%. In case of compensation for damage, the amount of the insurance payment will be reduced by 5,000 rubles, and not only the first payment and each subsequent one will be reduced.
Is it necessary
In most cases, the bank requires CASCO for a credit car, since this is the main condition for issuing a car loan. Moreover, the insurance policy can only be purchased from a number of companies that are partners of the bank.
The need to obtain additional insurance significantly increases the cost of a car loan, since CASCO extension for a loan car is required until the debt is fully repaid.
Recently, banks have been offering new types of car loans, for which the purchase of a policy is not necessary. Such offers are characterized by inflated interest rates, which allows the credit institution to minimize the risks of non-repayment of the money issued.
What happens if you don’t do CASCO for a credit car?
There are often situations when there is no money to purchase additional insurance.
The obligation to insure property purchased on credit is specified in the car loan agreement.
If a person violates the terms of the loan agreement, the bank has the right:
- demand full repayment of the debt within a specific period of time (in most cases 10 - 30 days);
- charge an additional amount for failure to comply with the basic conditions in the idea of penalties or fines (depending on what exactly is provided for in the loan document);
- to seize the collateral property through the court.
Before taking any steps, you should carefully read the banking agreement. Otherwise, the consequences can be very dire.
If you don’t have the money to take out compulsory insurance, you can get CASCO insurance with installments for a credit car.
Banks in most cases make some concessions to their clients, especially if all actions are taken in advance, and without waiting for the last deadline and without trying to deceive the credit institution.
The essence of the installment plan is that the insurance policy is issued at the right time, and payment for the service provided is made at a frequency determined by the contract.
However, it should be taken into account that in the event of an insured event, the company will pay the policyholder only the amount that has been repaid at that time.
How to refuse
There is only one legal way to refuse compulsory CASCO insurance in the situation of obtaining a car loan - to pay off the debt before the need to renew the policy. All other methods are illegal.
To avoid the need to constantly take out CASCO insurance, you can:
- receive money under a consumer lending agreement, and pay for the purchase of a car in cash;
- apply for a car loan that does not require insurance.
It is better to consider each case separately and before applying for any type of loan, it is recommended to calculate all possible situations and the price.
If you plan to take only half the cost of the car, then a consumer loan will be more relevant. If the purchase of automobile equipment is carried out entirely with borrowed funds, then it is preferable to obtain a car loan.
In this situation, it will allow you to immediately repay the debt in the event of loss or theft of the car.
Price
The cost of an insurance policy depends on the following factors:
- insurance company;
- make, model and cost of the car;
- owner's area of residence;
- availability of a car loan and the bank that issued the money;
- the number of drivers entitled to drive;
- age and length of service of each admitted driver.
For example, the cost of CASCO in Yaroslavl for a 2020 Hyundai Solaris car with one driver with 5 years of experience is presented in the following table (data taken from an online calculation calculator):
| Insurance Company | Cost of the policy, rub. |
| Jaso | 50 598 |
| VTB insurance | 47 809 |
| Invest-Alliance | 47 520 |
| Hephaestus | 48 050 |
| Agreement | 58 604 |
| Rosgosstrakh | 61 290 |
| VSK | 65 511 |
| Renaissance insurance | 53 468 |
| Reso-guarantee | 49 780 |
| Ingosstrakh | 50 122 |
| AlfaInsurance | 56 329 |
Decor
To apply for a CASCO policy you need:
- choose an insurance company. When buying a car on credit, a list of available companies can be obtained from the bank. You need to choose an insurer not only based on the percentage of material benefits, but also based on customer reviews. Some companies delay payment of insurance claims, which does not meet the needs of the beneficiary;
- prepare a package of documents, which must include:
- written statement. You can obtain the document at the office of the insurance company or on the organization’s website. Each policyholder has its own application form, since all insurers maintain a database of their clients. The application requires you to provide truthful information about the owner of the car and the drivers who are supposed to be allowed to drive;
- passport;
- driver's licenses of all admitted persons;
- technical passport of the car, which is issued upon purchase;
- , issued when registering a car with the State Traffic Inspectorate.
In addition to the main package of documents, you may need:
- power of attorney for the right to operate the insured vehicle (if the insurance contract is concluded not by the owner of the vehicle, but by the driver);
- certificate-invoice about the cost of the technical equipment (the document is issued upon purchase);
- loan agreement concluded with the bank;
- cost assessment (when buying a used car);
- on passing regular technical inspection;
- documents confirming the cost of additionally installed equipment;
- certificate of registration of a legal entity, if the car is registered to the organization.
- After collecting documents and submitting an application, a day and time will be assigned at which the car must be presented for inspection. This procedure is required for:
- reconciliation of all numbered units with the numbers specified in the provided documents;
- inspect the vehicle for damage.
- Next, an insurance contract is prepared and signed. This document must reflect information about the owner of the car, drivers, installed equipment, interest rate, expiration date of the contract, insurance cases;
- at the next stage, payment for the insurance policy is made;
- obtaining insurance and related documents: payment receipt and insurance rules from the company.
Why is it more expensive?
The cost of CASCO depends on how much the car was purchased for.
If the owner of the vehicle is the buyer, then you can agree with him on such aspects of the insurance contract as:
- accounting for wear and tear over time;
- increase in franchise;
- reduction in the cost of a car;
- reducing the list of possible risks, and so on.
All these factors directly affect the cost of an insurance policy.
If a car is purchased on credit, it is pledged to the bank. Consequently, insurance requirements are imposed not by the owner of the vehicle, but by the banks that issued the loan.
In most cases, banks require:
- obtaining insurance for the full cost of the car;
- purchasing a policy that does not provide for depreciation;
- protection against as many risks as possible.
The pleasure of owning a new car is almost always overshadowed when the time comes to purchase/renew a comprehensive insurance policy. This is what happened to me too. In August 2013, I bought a new Skoda Octavia A5, and then paid 42 thousand rubles for full comprehensive insurance. at insurance VSK. A week ago, the insurance manager from the salon called me and offered to renew my comprehensive insurance policy. She calculated everything in advance, but when I heard the numbers, my jaw involuntarily dropped! VSK offers me to extend my insurance for 87,000 rubles! This is more than double compared to last year, taking into account that during the calculation the cost of the car was reduced by 10%. The manager also offered several options, where the cheapest comprehensive insurance policy was around 65 thousand rubles. At that moment I could squeeze out only one phrase from myself: “Thank you, I’ll think about it.”
The mood was already ruined, and I wanted to quickly clarify this question: “Why has it become so much more expensive?” It is possible that the managers from the salon want to cheat this and sell the policy at inflated rates, then there is a possibility that you can buy comprehensive insurance directly from the insurance company for adequate money.
This year I had one claim for comprehensive insurance, the bumper was painted and the fender was replaced, a total of 25 thousand rubles worth of work. I was not to blame for the accident, but there was no one at fault either; someone hit me near the hypermarket while I was in the store. But can’t the cost of insurance double because of this? I think not.
Unfortunately, only a few insurance companies have an online calculator on their website where you can calculate the cost of insurance yourself. Many have only a semblance of it, it seems that you fill out all the fields, and at the end leave your full name, phone number and the manager will call you back. How these forms irritate me! Well, I don’t want to leave you my data! I had to call such offices by phone and ask them to calculate the insurance; they didn’t require me to leave my phone number there.
The result of calling and calculating on the sites confirmed my fears, comprehensive insurance has really gone up in price. But I don’t know whether all cars have gone up in price or just popular ones, like mine. The record so far is held by the insurance company Ingosstrakh - 97 thousand rubles, and the lowest price was held by SK Strazh - 47 thousand rubles. I read the reviews about Guardian and immediately excluded it from my list. After this little research, it became clear that buying comprehensive insurance from a normal insurance company for Octavia is cheaper than 60 thousand rubles. it won’t work (Skoda Octavia A5, 2013, 1.8 TSI, 152 hp, automatic transmission, Elegance, 10 years of experience).
Friends and acquaintances recommended their insurance brokers to me, from whom they buy insurance. I called 3 different brokers, they did the calculation within 2 days. This calculation showed the same order of numbers as I already knew, but they could be negotiated. You say that you have just been offered 1,500 rubles less, when they immediately offer you a discount of 2,000 rubles. Just like in the market, exactly.
There is good news. When talking with the manager of one insurance company, the subject of the deductible came up, he suggested calculating the comprehensive insurance with the deductible. But I have a credit car, and Sberbank does not allow insurance with a deductible. Which is complete stupidity in my opinion. But then the manager declares that, according to his information, Sberbank allows you to create a franchise. And then my eyes lit up. It couldn't have been? This insurance company turned out to be expensive even with a deductible, so I quickly ended the conversation and was already dialing Sberbank’s number. The call center operator, after a 10-minute meeting with someone, confirmed that the franchise can be used. But you can’t fool me, I asked for a link to some document where this is confirmed in writing. Another 10 minutes of waiting and now she dictates to me where I can find this phrase on the bank’s website.
This document is called - Mandatory requirements for insurance companies, clause 10.11. http://www.sberbank.ru/common/img/uploaded/files/pdf/credit_org/strah_treb.pdf
Many people underestimate the benefits of a franchise, so I will try to explain. The franchise allows you to reduce the cost of comprehensive insurance by up to 50%, but at the same time there is a deductible amount that we pay in case of any insured event. If we consider this using my example: the full cost of comprehensive insurance in Reso is 61,640 rubles, and with a franchise it is 15 thousand rubles. - 36939 rubles. Saving 24,701 rubles. According to statistics, my insured event occurs no more than once a year. Usually someone somewhere scratched me and disappeared. That is, if I get scratched again, like last time: painting two elements and one for replacement, then I will apply for comprehensive insurance. In this case, out of the repair cost of 25 tr. I will pay 15 thousand rubles, and the insurance company will pay 10 thousand rubles. If I only have one element scratched, where only painting is needed (repair is less than 15 thousand rubles), then I will not call the insurance company at all, but will repair the car myself. If the second participant in the accident does not escape, then we will be able to issue a Euro-protocol and I will be able to compensate part of my damage at the expense of his compulsory motor liability insurance. The MTPL policy usually covers only part of the costs, such as depreciation and other unexplained circumstances. There is a very big advantage here, because by agreement you can leave and not wait for the traffic police, saving a lot of time. You can also choose a repair service at your own discretion, and not in the direction of the insurance company. But you should understand that if several accidents occur in a year, you will have to pay 15 thousand rubles several times, and this will be more expensive than full comprehensive insurance without a franchise. So the franchise is for those who rarely get into an accident and want to save time and nerves. I'm just one of those people.
To buy insurance I went to the Reso office on Nepokorennykh Avenue in St. Petersburg, there are two sales managers there. I did not contact brokers, although they were a little cheaper, due to the fact that you can only buy a policy from them, but you still need to go to the office of the insurance company to inspect the vehicle. Also, brokers, if they offer a discount, only accept cash for payment, but I save money, so it’s advisable for me to pay for everything with a bank card.
40 minutes and the insurance is in my pocket, or rather in my bag. I took out comprehensive insurance with a franchise of 15 tr., OSAGO and DOSAGO up to 600 tr. - all together it came out to a little more than 40 thousand rubles, I paid with a bank card. I found out that I have a maximum discount on compulsory motor liability insurance - 50%. Let me remind you that to obtain insurance you need the original PTS, registration information, VU of everyone we include in the insurance, all the keys to the car.
All that remains is to notify the bank about the new comprehensive insurance policy; to do this, you need to come to the Sberbank office, where there is an insurance manager (not all branches have one) with the policy and a receipt for insurance payment. They will scan everything there and give it back.
By the way, there was a funny incident in Reso’s office. The second manager had clients who wanted to insure a car and persistently asked to indicate in the contract that it was 4C, and not a regular one. They had a distinct Southern accent. I became curious about this strange car. It turned out that it was a Porsche Panamera 4s for 4.5 million rubles. The cost of insurance is 325 tr, they give a discount, resulting in 299 tr. What a twist. At the end, they asked the manager for a gift pen for 10 rubles as a bonus, the manager and I even smiled at that moment. Okay, I won’t tell you more about them, otherwise I don’t want to spoil the impression of my story.
Has your insurance increased in price and by how much? So far the statistics for my friends are different - for some the price has increased, for others it has not.
Buying a vehicle on credit is a fairly profitable enterprise. After all, by paying the bank a “modest” interest, you get the opportunity to use the car even before the debt to the bank is fully repaid. But it's not that simple. The credit institution is obliged to insure its possible losses. On what basis is the conclusion of the contract CASCO for car loans is a prerequisite. But not all consumers know how to make cooperation with a bank and insurance company beneficial for all parties.
With whom to conclude a CASCO agreement for a credit car?
Having visited a car dealership and made a choice, the buyer may not even realize that the contract CASCO for credit vehicle You can conclude not only through the bank, but also in accordance with your preferences. The main nuance in this matter is the attractive interest rate that car dealerships lure buyers with. What is the secret of such loyalty? Let's figure it out together.
Typically, vehicle dealers act as follows: they offer the client especially favorable conditions - a minimum down payment, a long loan term, low interest rates, and an acceptable monthly payment. Well, how can you refuse this? But life teaches us that in everything that is very cheap, there is some kind of catch. So it is here. Usually, when receiving such a lucrative offer, a mandatory condition is the conclusion CASCO when drawing up a loan agreement.
You will not be able to choose the risks against which you will be insured. Such agreements provide complete protection against theft, complete destruction and various types of damage. Moreover, the cost of such pleasure cannot be called affordable for everyone. Therefore, many potential clients prefer to refuse to purchase a new car, or postpone it indefinitely.
A special nuance of the acquisition CASCO on credit is that you will not be given the opportunity to make an independent choice of which insurer to cooperate with. When you sign up for a contract, you will be offered several insurance companies that are current partners of the bank. And often concluding an insurance contract with any of them results in hefty expenses, since the real insurance rates for credit vehicles are far from those that are set for cars purchased for cash.
Therefore, if you have already decided to purchase a car using credit funds, you should initially consider all the options that your chosen insurance company can offer you. Thus, having decided on an insurer, find out which banks the organization cooperates with and what loan terms they can offer you. This will be the best solution. Because no one needs unpleasant surprises when making a purchase.
What are the tricks of bankers
Of course, like every merchant, auto loan banks have a couple of spare cards up their sleeves. Firstly, the manager offers each client to purchase CASCO insurance for the entire loan period. Motivating that without filing such protection there is nothing to count on a positive response. Although in reality this is not the case. And thus the bank employee simply imposes additional services on you. This is because in a so-called “full” sale, all interested parties will receive a significant salary bonus.
Secondly, another nuance regarding insurance for car loans is the proposal to draw up an agreement that protects your life and health, also for the entire period of the loan. Although such a service is voluntary, this is prudently kept silent. Although this is a violation of the legislation of the Russian Federation.
All these actions are prudently regulated by various internal instructions and rules of the salon, bank and insurance company, so it will not be possible to find a loophole. But if you think that you are being deceived and additional services are being secretly imposed on you, you should not cooperate with this company.
Payment of insurance compensation under a CASCO agreement for a loan car
When registering, in the event that it is stolen or it is completely destroyed, the payment is divided between the creditors and the owner of the vehicle. But, unfortunately, the amount of compensation will not be equal. After all, your unpaid debt is initially covered. And only then, if there is anything left, the funds are paid to the client. But you shouldn’t despair, since your obligations to the bank will be fully repaid.
Parties to the transaction when applying for CASCO on credit
Upon conclusion of the contract CASCO for a credit car There are three parties involved in the transaction - the policyholder, who is also the owner of the vehicle, the beneficiary and the insurer. And in the event of the theft of a vehicle, payment of insurance compensation is made to the account of the beneficiary or bank. These funds are used to repay the balance of the loan debt.
A beneficiary is a person to whom the client has certain obligations. And when certain circumstances occur, it is he who receives a monetary payment sufficient to repay them in full.
Of course, this arrangement may not suit every car dealership client. After all, the money paid by the policyholder himself before the theft of the vehicle will simply go down the drain. Although this is not a very pleasant moment, it should not be overlooked.
For what period should a CASCO agreement be concluded on credit?
As mentioned above, it is beneficial for the insurer and bank employee to impose a multi-year CASCO policy on you. Moreover, in many companies this is mandatory, although illegal. In fact, it is enough to insure the car for only a year, and after the contract expires, renew it with the same insurer or with any other. you can on our website.
These are the nuances and features of the contract CASCO on credit when buying a new car. We tried to answer all the questions that policyholders have when concluding a policy at a car dealership. And, if you still decide to purchase a car using credit funds, then having this information will come in handy. To avoid any unpleasant surprises, we advise you to first familiarize yourself with the company you plan to cooperate with.
Purchasing a car, especially a new one, is always a joyful event. And using credit funds, you can make such a purchase immediately, even without having the entire amount. Today banks offer quite interesting conditions and quite reasonable interest rates. In addition to interest, many lenders provide CASCO insurance for all types of vehicles pledged as collateral. Let's consider the conditions under which CASCO is offered for a credit car.
Providing such insurance is primarily beneficial for banks. The policy is mainly designed to avoid possible troubles associated with damage, destruction or theft of the pledged car.
Credit institutions try not to expose their funds to special risks, so refusal of insurance sometimes leads to refusal to issue a loan, although the law does not provide for the obligatory nature of this procedure. The main interest of the mortgagor is to preserve the pledged property in such a condition that will allow it to be sold if a certain situation arises. Thus, the bank will compensate for material damage if the payer of the loan is unable to return the funds.
To resolve such situations, it is obligatory for the borrower to register for CASCO insurance. Lenders only offer insurance from insurance companies that they are accredited with and that they fully trust.
The CASCO insurance period is 1 year. If the client does not have funds, the bank may offer to include the cost of CASCO in the amount of the loan issued, for a year or the full loan term. For this, banks usually increase the amount of the down payment.
How to apply for CASCO for a credit car
The CASCO registration procedure is very simple and includes several main steps. For your convenience, we suggest that you familiarize yourself with the insurance procedure.
| Use the calculator | The first thing you have to do is use the convenient calculator on our insurance portal. To receive a calculation, be prepared to indicate:
Once all the necessary data has been entered correctly, you will need to click get a quote. The resulting calculation will indicate the program and amount of the insurance premium for each insurance company. All you need to do is carefully study the terms and conditions and submit an application for registration. |
| Send a request | It is worth noting right away that it will not be possible to apply for CASCO insurance in real time. All insurance companies issue the product exclusively in the office, after checking the full package of documents and inspecting the vehicle. |
| Make an appointment | As soon as an authorized employee of the insurance company receives your application, he will immediately call you and specify a convenient time and date for a visit to the office. Also during the conversation, the company specialist:
|
| Prepare documents | When contacting the office of the insurance company, you must have a complete package of documents with you. As conducted, the list of documents in all companies is the same and includes:
If more than 3 years have passed since the vehicle was manufactured, the insurer may additionally request a diagnostic card form to ensure that the vehicle is in good condition. |
| Provide a car | The owner of a vehicle will be able to receive a form of a voluntary insurance contract only after an authorized employee has carried out an inspection. Please note that you must provide a clean car with a full set of keys for inspection. |
| Get a set of documents | The last thing left to do is to sign all the necessary forms and receipts, make payment and receive a set of documents in your hands. At the end of the visit, the car enthusiast should have:
|
As you can see, the voluntary insurance procedure is very simple and will take no more than 30 minutes. Thanks to the Internet, you can choose the insurance program you need and avoid additional services, as a result of which the cost of the product will be significantly increased.
Also, thanks to the electronic application, you will be able to remotely discuss all the conditions under the CASCO agreement and make an appointment at any time convenient for you.
How do the terms of a loan agreement change when taking out insurance?
The presence of such insurance makes it possible to obtain a loan on more favorable terms with a minimum package of documents and at a lower interest rate than without it.
Lenders with more lenient requirements may increase the down payment, interest rate, and the borrower's requirement to provide other additional costs. The package of documents confirming the client’s financial condition and his official employment is also being expanded.
The requirements of banks for car sellers are also very different. Some banks cooperate only with car dealers, others work with any car shops, subject to confirmation of complete diagnostics. The presence of such requirements involves additional financial costs, and it will take a lot of time to carry out such events.
Is it possible to reduce the insurance amount?
To save money, when applying for CASCO insurance, some car owners enter into an insurance contract with the condition of including a deductible.
The type of franchise can be expressed as a percentage of the contract amount, or as a fixed rate. This service allows you to reduce the cost of insurance, but if an insured event occurs, the deductible amount is deducted from the amount of each insurance claim.
Therefore, if there is a franchise, minor damage received as a result of an accident will have to be repaired by the driver at his own expense. This type of insurance is not accepted by all banks, so before concluding an agreement, you must check with the lender about the possibility of such insurance.
The insurance amount under the contract can be:
Many insurance companies allow payment of the insurance premium in installments, although for such a service there is the possibility of increasing it. Before purchasing insurance under these conditions, it is necessary to clarify whether such a financial institution is accepted.
Do I need to renew my insurance?
The answer to this question must be found in the loan agreement. As a rule, in the absence of a collateral insurance agreement, banks provide penalties in the form of increased interest rates or provide for the confiscation of the vehicle. There is also a risk of theft or the possibility of getting into an accident.
If it is not possible to restore the car, all responsibility for repaying the loan falls on the car owner. Insurance of collateral is carried out for the amount of debt on the loan, therefore the amount of insurance will decrease.
Often, an insurance contract is concluded with the possibility of its extension. In this case, it turns out to be quite economical. If you are no longer satisfied with the rates of your insurance company, and another one offers more favorable conditions, you can change it, if desired. Therefore, everyone makes the decision to renew their insurance themselves.
Why is CASCO for a credit car more expensive?
It is no secret that when calculating the cost, you can replace the fact that the cost of credit insurance is several times higher. What is the reason for this difference? Everything is very simple! It is no secret that insurance companies actively cooperate with insurers. As a result, they offer to issue the product directly in their office.
For their services, lenders receive an agency fee in the amount of 10-20% of the cost of the product. It turns out that the higher the cost of the insurance contract, the higher the income. That is why lenders are trying to add as many options as possible, which lead to an increase in the price of the product.
