CASCO is a type of vehicle insurance that covers the damage to the vehicle regardless of the driver’s fault when the insurance is active.
Why do you need CASCO if CMTPL exists? While CMTPL (Compulsory Motor Third Party Liability Insurance) is mandatory and covers damage caused to third parties, it doesn't protect your vehicle. CMTPL compensates the affected party for personal or property damage, but if you're at fault, you're responsible for repairing your vehicle. Conversely, CASCO covers damages to your car regardless of fault, offering you full protection.
Conversely, CASCO is a type of voluntary insurance that safeguards the vehicle owner’s interests. Even if the owner is at fault for the accident and their vehicle is damaged as a result, CASCO coverage will compensate for the damage. The owner of the vehicle will either receive a payment or have their vehicle repaired at the company’s expense. Each insurer determines CASCO premiums.
CASCO premiums are influenced by various factors such as the vehicle's age, the driver's age, driving history, experience, the car make, and its market value. Unlike CMTPL, where calculating the premium is relatively straightforward, determining the cost of CASCO insurance is more complex. To get an accurate quote for your vehicle, it’s best to contact the insurance company directly.
CASCO protects against financial loss in a variety of situations, not just car accidents. It covers damages such as objects falling onto the car from a building, a tree being blown over by the wind, theft of the car or its parts, and more. These types of damages are not covered by Compulsory Motor Third Party Liability Insurance (CMTPL), which only compensates for damage caused to third parties.
For CASCO insurance, the vehicle must be no older than 10 years. However, for vehicles older than that, Nairi offers Casco Universal, which provides coverage for older cars.