When buying a car on credit, every car owner is faced with the issue of CASCO insurance. This item is a prerequisite for obtaining a loan. CASCO has many nuances, in some cases it is not necessary to have a policy, even when buying a credit vehicle.
Why CASCO for a credit car is mandatory
Every car owner who buys a car on credit understands that until he pays the full cost of the car, it is owned by a credit institution. CASCO is a profitable type of insurance for both the bank and the driver. In the event of an accident or theft, the insurance company will compensate the damage in full.
Quite often, salons impose certain insurance companies on customers, but such an action is illegal. The main point in this case is the presence of the insurer's accreditation in the right bank.
The main thing that does not suit car owners is the cost of the CASCO policy. Most banks require a full range of insurance - from damage, fire, theft, etc. However, CASCO has some features that can be studied in the contract itself.
In what cases CASCO is not required for a credit car
Insurance companies do not always conclude CASCO. For example, if the car is over 10 years old, then the insurer has the right to refuse insurance. If you buy a car not in the showroom, but on the secondary market, but take a car loan for this, then in order not to insure the vehicle under CASCO, it is enough to bring several written refusals from insurance companies to the bank. The main condition is that the car must be over 10 years old.
CASCO policy is concluded, as a rule, for the entire crediting period. However, if you repay the loan ahead of time, then car insurance from that moment is carried out solely at your request.
Cars not registered with the traffic police are also not subject to CASCO insurance. When concluding a policy, a complete set of documents is required, including title and vehicle registration certificate.
In what cases CASCO is obligatory
The presence of a CASCO policy is mandatory when buying a car on credit in the showroom. However, the terms of insurance can be changed to a great extent. For example, some banks are ready to make concessions and accept the CASCO policy, in which payments are broken down into six months or quarters. This happens very rarely. Usually, in the conditions of obtaining a loan, the full payment of CASCO is mandatory, car owners do not have the right to refuse this type of insurance. In this case, contributions must be paid in accordance with a certain schedule specified in the contract.
How to reduce the cost of hull insurance
For a credit car, one CASCO policy is concluded for the entire loan period, and you make payments once a year. In this case, you can reduce the cost of costs. For example, if you take out a loan for 5 years, then when drawing up a single policy and paying it at a time, the insurance company will significantly reduce the cost of CASCO. In this case, it is important to pay attention to one nuance - you must be as sure as possible that the insurer will not go bankrupt in the coming years. Only no one can get such guarantees even with a strong desire. The policy will be valid only for the period for which you made the contribution.
Please note that in some salons promotions are periodically held, during which CASCO is included in the cost of the loan itself.
It is possible to reduce the cost of CASCO by agreement with the credit institution and the insurance company, if the car is partially insured. The list of possible risks includes only theft and damage. You may end up with fire insurance if the loan agreement does not imply a full CASCO.