Car thefts happen every day, and anyone who thinks that only expensive cars are stolen is deeply mistaken. The example of Slađan Z. from Belgrade shows exactly the opposite...
Car thefts happen every day, and anyone who thinks that only expensive cars are stolen is deeply mistaken. The example of Slađan Z. from Belgrade shows the exact opposite...
"I bought a new Seat Ibiza in 2011 and for several years in a row I also bought comprehensive insurance. I had some damage here and there and everything was properly covered. However, at one point we needed money for some other things and in 2017 we stopped paying for it," Slađan told us.
As he says, when his financial situation improved again, at the urging of his wife, he paid for comprehensive insurance again.
"I thought that my Seat Ibiza was not one of the cars that is stolen, so I never expected it to happen. Not even half a year had passed since I paid for comprehensive insurance again, my car was stolen. I got enough money to buy another one, a used one of course, so now I have something to drive again."
What is comprehensive insurance?
Casco insurance covers all damage to your vehicle, even if you cause it yourself. There are exceptions that we will explain separately.
The difference from compulsory insurance is that compulsory insurance covers damage to other vehicles and people that your car causes damage to while you or someone else is behind the wheel.
Unusual situations in which casco insurance is worth its weight in gold
Casco also covers damage caused by a crash of an aircraft. It is really unlikely that an airplane or helicopter will damage your vehicle, but it has happened, believe it or not: A sports plane crashed into a car
Damage can be caused by various animals with their teeth or claws. For example, a rat or mouse can bite through cables and hoses, which can cause very serious damage. There have also been cases of stray dogs chasing a cat that has crawled under a car and tearing the bumper.
Are there any exceptions that casco does not cover?
There are, which is why you should read the contract carefully so you know what situations you need to be especially careful of. For example, if a family member steals your car, the insurance company is not obliged to compensate for the damage.
The same applies if you cause the damage by running a red light, driving in the opposite direction, overtaking in a place where it is prohibited, driving under the influence of alcohol or drugs, violent driving... Also, if you refuse a breathalyzer test or leave the scene of the accident after an accident, you may be left without compensation. There are also war, terrorism and earthquakes.
Damage reporting procedure
Another way to be left without compensation is to violate the damage reporting procedure. Therefore, familiarize yourself with the procedure that you must follow in various situations.
Theft - comprehensive insurance can be contracted with or without the risk of theft
If you are not afraid that someone will steal your car, you can take out comprehensive insurance that does not cover this risk. The price will be slightly lower, depending on the car and the insurance company, but statistics show that around 90% of comprehensive insurance policies include theft, which means that most owners consider the savings not worth the risk.
Bonus and malus – reward and “punishment”
Careful drivers are rewarded with discounts, that is, bonuses, that increase with each year without damage. The right to a bonus can be transferred to a new car or to immediate family members from the same household.
On the other hand, malus represents a “punishment” for drivers who have multiple incidents, that is, who collect more damages. The conditions vary from insurance company to insurance company.
The amount of the malus, depending on the number and severity of the damage, can exceed twice the amount of the insurance price. In this way, drivers are encouraged not to report minor damage. Before signing the contract, be well informed about all the conditions related to the malus.
Don’t forget about the down payment
A fairly important item in comprehensive insurance is the down payment. In general, the higher the contribution, the cheaper the comprehensive insurance will be. Sometimes it is mandatory, sometimes it is not, which means that you can also arrange comprehensive insurance without a contribution.
In some insurance companies, it can be 5% or a fixed 50 euros, which means that you participate in each claim with at least 50 euros or 5% if the claim is greater than the fixed part.
GRAWE is the only insurance company that does not have a relative participation in the claim expressed in percentages, but can be without a contribution, i.e. the contribution can be a fixed amount, from 100 to 400 euros.
Is comprehensive insurance transferred to the new owner?
No, after the sale of the car, if comprehensive insurance was paid for the entire year, the difference is returned to the owner, but only if he did not charge a claim that year.
Examples of more specific conditions
Since the conditions differ from house to house, we asked Dragana Marković from the corporate communications and marketing sector of GRAWE Insurance to answer a few questions.
What discounts can car owners get?
"Car owners can get a discount on the comprehensive insurance premium for full payment, if they have a protective device against the risk of theft, if they have not had any damage in the previous year/years (it also depends on the number of years), and of course if they are clients of GRAWE insurance".
Is it worth it for someWhich cars and models are required to have additional safety systems installed?
"No, with GRAWE insurance, any vehicle can be insured without safety systems."
What are the conditions for bonus and malus in your insurance company?
"The provisions on bonus and malus apply only to fully comprehensive vehicle insurance. If the vehicle has been continuously insured for at least one year and during that period the insurer has not paid out any damage, or at the time of extension or renewal of the insurance the damage to that vehicle was not in the liquidation process (reported damage), the insured is entitled to a premium reduction - bonus.
Based on the number of years in which there were no reported damages, the insurance premium is reduced by 15% if no damage was reported in the previous insurance year, 20% if there are two consecutive years of insurance, 30% for three consecutive years without damage, 40% for four consecutive years, 50% if there was no damage reported in five or more consecutive years of insurance.
In the event that the insured person exercises the right to compensation from comprehensive insurance during the insurance year, the insurance company will calculate an additional premium - malus.
If during the current insurance year the insured person has reported 3 or more damages to the insured vehicle, the insured person is obliged to pay an additional premium. The additional insurance premium for the third claim is as much as 50% of the annual insurance premium.”
Can the bonus be transferred to the next owner?
“The right to the bonus is not transferred to the new owner of the vehicle in the event of sale. However, when transferring ownership to an heir (family member), the rights and obligations under the bonus and malus provisions are transferred to the family member, but only if the family member is registered at the same residence address.”
What is the procedure for reporting and compensating for damage in the following situations:
a) When I cause an accident through my own fault?
