Casco and compulsory motor insurance: differences and benefits

To simplify it completely, it can be stated that compulsory insurance compensates the damage inflicted to others, whereas Casco insurance covers the damage done to your own car. If compulsory insurance is aimed at protecting the driver from financial expenses compensating the damage inflicted to others, Casco insurance is intended to ensure the protection of your car and your financial security.

Casco insurance helps not just in case of traffic accidents. It also includes thefts, vandalism, natural forces, technical assistance, and other risks. Moreover, this insurance covers accidents both while the car is being driven and parked.

If you have Casco, damage inflicted to the car is compensated irrespective of who the causer of the traffic accident is and also includes other risks relevant for the policyholder. For instance, should you hit the garage door or a fence and damage your car, with compulsory insurance policy only, you will have to pay for the repair costs from your own pocket, whereas with Casco, this will be covered by the insurance company. Naturally, a deductible might be due when applying for the insurance benefit, as is often the case.

Casco is a type of voluntary insurance selected by drivers to ensure financial stability in case of accident by covering the repair costs or providing a new equivalent car. Standard Casco insurance coverage includes the most frequent claims with significant damage:

• Traffic accident (caused by you)
• Theft
• Vandalism
• Natural forces, such as hail, a broken tree or branch or objects that have been blown away by the wind and fell on a car
• Fire
• Damage inflicted because of other sudden and unexpected events (e.g., hitting a fence, curb, roadblock).

Casco insurance is flexible and thus you can choose coverage against various risks. Below are just a few of insurance coverages generally selected by the drivers that might be also relevant for you. It’s worth to mention that If Supercasco already includes several of them, so there is no need to select them additionally.

• Roadside assistance is probably the most frequently used type of coverage. If you have it, you can get roadside assistance around the clock. 
• Additional equipment insurance is helpful if you have a roof luggage carrier, bicycle holders, safety seats etc.
• A replacement car provides a convenient service if your car is to be repaired and you cannot spare it.
• Mobility service is a new feature particularly important for the residents of big cities. Instead of the replacement car, you can get a compensation for alternative transportation services, such as car sharing, lease, taxi, city bike or scooter rent, and public transport.

Please note that Casco terms are not uniform. Each insurer offers different insurance coverage with different terms.  You can learn more about If casco benefits here.

Compulsory insurance for electric vehicles is the same as for all cars driven by internal combustion engines. The price of insurance is set by an insurance company subject to a multitude of criteria, with the fuel type being just one of them. Nonetheless, when selecting Casco insurance, find out if insurance coverage is adjusted for electric vehicles.

Electric cars, like cars with internal combustion engines, get into the same traffic accidents, where various parts of bodywork, windows and lights are damaged, tyres get punctured, or wheel rims broken. The difference lies in the fact that the average claim of regular cars is around Eur 1,300, whereas the average claim with electric vehicles amounts to approximately Eur 2,000.

Some insurance companies offer the drivers of electric cars extended Casco coverage that includes not just car insurance. If you choose electric car Casco insurance at If, we take care of the car as well as the special charging station installed at your home and charging cables.

Should the charging equipment be stolen or damaged during accident, If Insurance compensates damage up to € 2,000. Furthermore, with this insurance, roadside assistance is provided 24/7 including situations, when the vehicle has to be transported to the nearest charging station due to an empty battery.

As in every field, in insurance, unfortunately certain misleading preconceptions are prevalent. Danas Dilys, motor insurance product manager at If, is ready to dispel the most popular myths about car insurance.

1. Casco is important for owners of brand new cars only

Not true. Security systems help to avoid traffic accidents and minor incidents, that’s right. However, it cannot be said that there are significantly fewer accidents with newer cars. Furthermore, practice shows that casco is just as necessary for older vehicles, because the damage caused by an accident is quite significant to manage on its own.

2. Insurance is expensive

Not true. Insurance is intended to ensure financial security and to avoid unexpected financial expenditure. In 2023, an average Casco claim amounted to approximately Eur 1,300 and that of compulsory insurance – to Eur 1,800. This exceeds the average insurance premium by several times. It is, therefore, incorrect to state that insurance is costly.

3. Casco is more expensive for new cars

Not true. Casco insurance for new cars often costs even less than for a car that is several years old. New cars not just break down less often; they also have more security systems installed. Automated breaking is one of them. This system significantly reduces the number of minor collisions on city roads.

4. Insurance coverage may not be changed once insurance has been purchased

Not true. You can adjust the deductible or Casco insurance option any time. To do this, contact your insurance company directly.

5. Insurance for a young driver will be less costly if purchased in the name of their parent

Not true. The insurance premium may be somewhat higher, but a young driver will also need an insurance history record for the future. This knowledge increases responsibility and calls for caution in traffic, because their behaviour in traffic will affect the insurance premium in the future.