CASCO Insurance

The area covered by a CASCO policy depends on the insurer's offer and the customer's wishes and needs. CASCO insurance may cover risks occurring only in the territory of Latvia or in the Baltic States, European countries, European and CIS countries. 

CASCO insurance usually covers the following risks:

• Damage to the vehicle caused by a road traffic accident.
• Theft, robbery or burglary of the vehicle and other damage to the vehicle caused by the unlawful acts of third parties.
• Damage to the vehicle after which it is no longer roadworthy or it is uneconomical to repair. In such a case, the amount of compensation is the market value of the vehicle on the date of the accident.
• Damage caused by animals, for example after a collision with an animal, damage to the interior or the engine compartment caused by animals or birds.
• Damage caused by fire accidents and natural disasters, for example by fallen trees in a storm, severe hail, floods, lightning, etc.
• Poor road surfaces, for example a pothole in an asphalt surface.
• Roadside assistance after technical problems occur, by providing technical assistance, taking the car to a workshop, providing fuel, 24-hour assistance and advice.

If necessary, CASCO insurance can be extended to cover a range of additional risks:

• Restoration of keys and alarm systems if stolen or lost.
• Replacement of the car after an accident, providing a replacement car for the duration of the repairs, or after the car is stolen. 
• Renewal of number plates and technical passports after they have been lost, stolen or damaged.
• New car insurance for two years after purchase, covering losses up to the purchase value of the car.
• Accident insurance, covering the health of the driver and passengers in the event of medical and treatment expenses, disability, death or temporary incapacity for work following accidents.
• Windscreen insurance - if the windscreen is broken or shattered by third parties, temperature changes or objects lifted from the road surface, such as stones or branches.
• Maintenance damage - for example, after the vehicle has been repaired, serviced or washed.
• Damage to the hydraulic shock after the vehicle has entered puddles or flooded areas, water penetrating into the electrical or mechanical units and assemblies of the vehicle.
• Other additional risks and conditions.

There are a number of cases where the insurance company can significantly reduce or refuse compensation, so you should check the terms of your contract carefully.

• If the damage is caused by wear and tear on the vehicle, for example rotting, mold growth, corrosion of parts, and is not caused by sudden external influences but by gradual ageing.
• Damage to the running gear of the vehicle, such as shock absorbers or bearings, except in the case of an insured peril resulting in mechanical deformation of other parts of the vehicle.
• The vehicle is found to have faulty parts or equipment due to an error on the part of the car manufacturer or workshop.
• If the vehicle is stolen using the original ignition keys or original anti-theft device of the vehicle and these have not been stolen or hijacked. 
• If the vehicle was stolen because it was not equipped with an anti-theft device, the anti-theft device was not working, the car was not locked or the windows were not closed.
• If, after the theft of the vehicle, the policyholder cannot produce the anti-theft system controls and ignition keys in working order as stated in the insurance policy, unless they have been stolen.
• If the theft or robbery of the vehicle has involved the policyholder or another person on their behalf.
• Improvements to the vehicle if, during the repair work, parts or equipment of the vehicle are replaced in such a way as to improve the technical and general condition of the vehicle as compared with its condition before the insured event, for example by replacing parts which have become worn, corroded or worn out.
• If the vehicle's operating rules have been violated, for example, if it has not been properly maintained or used in accordance with the manufacturer's requirements, if a trailer, belongings or cargo have not been properly secured, if damage has been caused by a driver or passenger not wearing a seat belt, or if the vehicle has been driven without a national roadworthiness test.
• If the vehicle was used to take part in a competition.
• Failure to comply with road traffic rules and signs, for example entering restricted areas, driving under the influence of alcohol, drugs or other intoxicating substances or without a licence, speeding significantly above the speed limit, failing to stop at a stop sign, etc.
• If the driver has left the scene of the accident.
• If the damage occurred while the vehicle was hired out, used for the carriage of dangerous goods or used as a taxi, public or shared vehicle, unless such use is provided for in the insurance policy.
• If, after submitting an application for insurance indemnity, the policyholder has failed to submit, within a specified period, the documents required by the insurance undertaking to enable verification of the occurrence of the insured risk and the amount of the loss.
• If repair work on the vehicle has been started before the vehicle has been inspected.
• For damage caused by terrorism, war, riots, strikes or radiation.

The deductible is the part of the loss that you have to pay in the event of an insured event. It is usually a fixed amount of money or a percentage of the amount of the loss specified in the insurance policy.

For example, the indemnity is calculated at EUR 1 000 and the excess is EUR 100. The indemnity to be paid to the garage will be EUR 900 (EUR 1000 - EUR 100).

The deductible applies to each insured event, regardless of whether the damage to the car is caused by a third party, another vehicle or by you.

It is also possible to conclude a CASCO contract without an excess, which will pay out the full amount. However, you should note that there are limitations, e.g. the indemnity without excess is paid on the occurrence of the first event or the first two events, each subsequent event is already covered by a fixed amount. In general, the higher the excess, the lower the CASCO price and vice versa.

Types of deductibles:

• Basic deductible - applies if no other deductible is specified for the insurance event.
• Breakdown, theft and robbery deductible - if it is not economically viable to repair the insured car. The breakdown deductible is higher if the vehicle is used for sports or educational purposes.
• Theft and robbery deductible - applies if the insured vehicle is stolen or robbed and is influenced by the type of vehicle and the security systems in the car, as well as the exclusivity of the car.
• Glass deductible - if the only damage caused is to the car's glass.

The price of a CASCO policy is influenced by various factors, but the main principle is that the fewer the potential risks, the better the terms. The main criteria that determine the price of CASCO insurance for a vehicle are:

• Age, make, model and value. Cars up to 20 years old are usually insured. The more exclusive the vehicle, the more expensive the policy price. Also, those who own makes and models of cars that are more likely to be stolen, stolen or damaged will pay more.
• Purpose of use. The price of insurance will vary depending on the use you make of the vehicle - if you use it for private use only, you will pay less; if you use it for passenger transport, security, taxi services or training new drivers, you will pay more.
• Safety equipment.  The more professional the anti-theft equipment, the lower the policy price. Safety systems must be in working order - batteries must be changed on time, maintenance must be carried out, etc.
• Driver's age. Drivers of different ages have different driving habits - young people usually pay more for insurance than older people.
• Driving experience - drivers with more experience and training will have cheaper CASCO insurance.
• Driver's reputation - the fewer road traffic offences, the better the CASCO policy premium.
• Movement area. In cities with heavy traffic, the likelihood of potential accidents is higher than in rural areas. Therefore, vehicle owners with a car registered in densely populated urban areas should expect to pay more, as should cars moving over a wider area. For example, a car that travels throughout Europe will cost more to insure than a car that only travels within one country.
• Extent of deductible or driver involvement. The higher the deductible, or the driver's own participation in the event of an insured event, the cheaper the CASCO insurance.
• Additional insurable risks - the more additional risks included in the policy, the more expensive it will be.

There are circumstances beyond your control - the length of time you've been driving or the age of your car, various unexpected situations on the road - but you can help reduce your risks by keeping an eye on the roadworthiness of your car, your driving style and the rules of the road. All of these factors together determine how much CASCO insurance will cost.

Correct and timely action by the policyholder is essential for CASCO insurance to cover the costs of damage to the vehicle or other insured risks.

• As far as possible, take photographs of the damage to establish the extent of the damage at the time it was caused.
• Notify the relevant authorities, e.g. the police if the car has been stolen or damaged, if there has been a traffic accident or if the car has been damaged by the action or inaction of a third party, or the State Fire and Rescue Service if the car has caught fire, etc. There are some cases where you do not have to report the incident to the authorities, e.g. if only the windscreen is damaged, if there is a road traffic accident for which you can make an agreed statement, if a tree is broken in a storm.
• The insurance company must be notified immediately, but not later than three working days from the time when it is possible to do so.
• The insurance undertaking must be able to inspect the vehicle at its customer service centre or at an authorised repairer.
• Any repairs to the car may only be started after the insurers have inspected the car following the accident.

To apply for reimbursement, call the insurer or fill in the form on the insurer's website, attaching photos of the damage to the vehicle. Alternatively, you can visit a customer service centre or a garage where the vehicle is inspected, photographed and an estimate is made.

After the application has been submitted, the insurer will assess the extent of the damage and calculate the indemnity.

The repair costs will be covered to the extent necessary to ensure that the vehicle is in the same technical and general condition after the repair work as before the damage was caused, using spare parts of equivalent quality where possible.

The insurer will pay the invoice of the garage chosen jointly with the insurer for the purchase and repair of the spare parts, in accordance with a pre-approved estimate.

In the case of repairs to a vehicle up to 3 years old, the insurer may accept the repairs to be carried out by the official representative of the vehicle in Latvia.

If the vehicle has been damaged outside Latvia, it is possible to carry out minimal repairs to enable its return to Latvia, subject to prior agreement with the insurer.

If the vehicle is damaged or stolen, the market value of the vehicle on the date of the incident is paid, subject to prior agreement with the insurer. If the vehicle is found, it will become the property of the insurer.

Please note that CASCO insurance will only be valid if the policyholder has given timely notice of changes to the risks covered by the insurance policy.

• If the ignition keys or anti-theft devices are lost. In this case, the keys or the anti-theft system must be replaced immediately at your own expense.
• Replacement of the ignition keys or the anti-theft system of the vehicle.
• The purpose of the vehicle changes, e.g. it starts to be used for training new drivers.
• The vehicle registration certificate is lost or stolen.
• The national registration plate of the vehicle is lost or stolen.
• The vehicle is converted, changing its power or equipment.