Voluntary car insurance – a necessity or a waste of money? We are for informed choice! Therefore, we propose to get to know DSAGO better.
Almost everyone knows about the existence of OSAGO and Casco, regardless of the presence of a car. However, not even every driver knows what DSAGO is and why it is issued. And among those who know, there is an opinion that this is a waste of money.
Before the occurrence of an insured event, few people think about the possible consequences. But if you happen to receive an insurance payment at least once in your life, you have learned from personal experience how useful additional funds are when a flood occurs in an apartment or you have to go on a long sick leave.
So it is with DSAGO – under certain circumstances, it can save a motorist from serious financial problems.
What is voluntary third party liability insurance
DSAGO (or DoSAGO) is a voluntary third party liability insurance aimed at financial protection of the policyholder’s liability that may arise as a result of an accident involving other people and vehicles (hereinafter referred to as the Vehicle).
Despite the fact that this type of insurance is optional, it is definitely worth thinking about issuing it, because the amount due under OSAGO is not always enough to compensate for damage to the victims, and in the absence of additional protection, the rest of the costs fall on the shoulders of the culprit of the accident.
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What other types of car insurance are there?
There are six main types of auto insurance:
- insurance for the car against mechanical damage and malfunctions of electrical components;
- “Green map”;
- accident insurance for drivers and passengers.
Financial protection against breakdowns is often included in the factory warranty, but you can arrange it yourself. According to the conditions, the insurer is obliged to compensate for the cost of repairing the vehicle.
OSAGO is compulsory insurance for all motorists in the Russian Federation. For driving without it, a fine of 800 rubles is provided. In the event of an accident, the victims will not have to seek payment from the culprit for car repairs and treatment. The damage is compensated by his insurance company: material – up to 400 thousand rubles for each car, physical – up to 500 thousand rubles per person.
The “Green Card” is an analogue of OSAGO, but it is obligatory only for those traveling abroad.
Other types of auto insurance are voluntary.
Casco is not a cheap pleasure and is not available to everyone. Its main advantage is that the insured receives a payment regardless of who is guilty of damaging the car. Among the insured events are accidents, theft, actions of third parties, natural disasters.
The DoSAGO agreement is often concluded in tandem with Casco, but it works in the same way as with a separate execution – it covers the damage caused to other participants in the accident if it exceeds the maximum amount for OSAGO – 400 thousand rubles.
Accident insurance for drivers and passengers is a classic insurance that can be taken out in addition to Casco or OSAGO.
Differences from OSAGO and Casco
To fully understand what DSAGO is, let’s compare it with the most popular types of insurance for car owners – OSAGO and Casco.
|1. Mandatory registration||Necessarily||Voluntarily||Voluntarily|
|2. Cost||Regulated by the state||Installed by the insurer||Installed by the insurer|
|3. Object||Civil liability of the driver to other persons. If an accident occurs through his fault, the victims will receive compensation from the IC||Customer car||Similar to MTPL, but the policy starts to work when the damage exceeds the maximum amount of the MTPL payment|
|4. Payouts||No more than 400 thousand rubles in case of damage to property (according to the European protocol – 100 thousand), for causing harm to health – up to 500 thousand rubles||Depend on fare and damage||It is defined as the difference between the amount of damage and compensation for OSAGO (or franchise). The limit depends on the terms of the contract|
|5. Who gets paid||Injured as a result of an accident due to the fault of the driver inscribed in the insurance||Vehicle owner||Similar to OSAGO|
All types of insurance can be issued in different insurance companies, while each insurer will cover the part of the damage that corresponds to the terms of a separate contract.
Advantages of DSAGO
Considering the skepticism of some citizens towards voluntary financial protection, one of the advantages of the DSAGO is that it is not mandatory to issue it.
Secondly, there is no limit on the amount of coverage. The insured himself chooses the tariff based on his budget and attitude to risk.
Thirdly, the presence of DSAGO frees the culprit of the accident from a number of problems if the damage exceeded the maximum payment for OSAGO:
- the need to negotiate with the affected party;
- expenses for legal services;
- payment of legal costs;
- waste of time in litigation;
- arrest of accounts;
- additional compensation for damage to the victim from his own pocket.
It would seem that 400 thousand rubles is a rather large amount, and compulsory insurance should be quite enough. However, statistics show that the average cost of a new car in the Russian market is more than 2 million rubles. This means that the probability of causing damage, the elimination of which will require more money than you can get under OSAGO, is not so small.
Ivan has been driving for less than six months and is not used to driving in bad weather conditions. In the first snowfall, the guy lost control, flew to the intersection at a red traffic light and “hooked” two cars, one of which is a Land Cruiser worth about 6 million rubles. The situation was aggravated by the fact that the driver of the car following the expensive foreign car did not have time to slow down and crashed into it from behind.
After all the proceedings, the victims of the three relatively inexpensive vehicles received CMTPL payments. With the Land Cruiser, the damage to which the expert estimated at 700 thousand rubles, everything turned out to be not so clear. Of course, the owner took care of his financial security and issued a hull, but contacting the insurance company (hereinafter referred to as the IC) would have entailed an increase in the cost of the service next year.
Fortunately, a few months ago, Ivan signed a DoSAGO contract, and the amount of compensation was enough to fully cover the repair. Without it, the victim could both use his insurance and go to court.
Disadvantages of DSAGO
Since the registration of additional protection is voluntary, before deciding to conclude such an agreement, car owners have the opportunity to study the issue both positively and negatively.
The first drawback concerns the procedure for issuing DoSAGO. Not all insurance companies provide this service, and if it is, it is not under a separate agreement, but as an addition to other types of auto insurance – OSAGO or Casco.
In addition, in order to avoid fraud, the insurer has the right to inspect the vehicle to decide on the possibility of providing the service.
When choosing DSAGO, it is important to pay attention to the reliability of the SC. The fact is that, unlike OSAGO, RSA (Russian Union of Motor Insurers) does not guarantee payment for an insured event. In the event of bankruptcy of the insurer, the perpetrator of the accident will lose additional financial protection, and the victims will receive compensation only within the framework of compulsory insurance.
The IC has the right, within 15 days after the accident, to inspect not only the injured car, but also the transport of the culprit. If the client does not provide such an opportunity or repairs the car before the deadline, the insurer may refuse to pay out.
Since there are no separate laws and instructions for DSAGO, the UK tariffs are set independently.
The client has the right to choose the appropriate insurance option in accordance with the desired amount of coverage. It can be either 1 million or 30 million – there are no restrictions.
There are two types of payments.
- Aggregate – when there is a limit on the amount of payments under one contract.
For example, let’s return to Ivan from our “emergency” story. He took out insurance for 1 million rubles. The payment to the injured party amounted to 300 thousand rubles. The balance of 700 thousand rubles is the maximum amount that can be paid for all accidents due to Ivan’s fault until the end of the insurance contract.
- Non-aggregate – payments for previous accidents are not taken into account, that is, compensation for each case is limited only by the amount of the insurance amount specified in the agreement.
Similarly to compulsory auto insurance, in the DSAGO documents, you can enter the data of specific persons who will be entitled to drive the vehicle, or take out insurance without restrictions.
DSAGO expires on the day when CMTPL ceases to be valid, regardless of the date of issue. Insurance can be issued later than mandatory, but then the insurance period under the contract will be less.
Another nuance is the franchise. This is the amount of damage until which the SC does not pay a payout. As a rule, this is 400 thousand rubles for OSAGO, but to reduce the cost of the service, you can conclude an agreement with a larger deductible.
If the deductible under Ivan’s contract was 600 thousand rubles, then if the TLC owner did not have hull insurance, the payment of compensation would take place in the following way: 400 thousand rubles – from the insurance company for OSAGO, 200 thousand – from the culprit, the remaining 100 thousand – for DoSAGO.
How much does a policy cost and what does the price depend on
Due to the fact that voluntary insurance is considered unprofitable for insurers, it is difficult to find separate offers for DSAGO on the market. Most often, insurance companies provide an opportunity to issue extensions to OSAGO or Casco.
The price of an additional service is influenced by many factors:
|Conditions||How does it affect the price|
|Cover amount||The larger the amount insured, the more expensive|
|Payment type||Cheaper insurance with aggregate payments|
|Limitation||Lack of restriction increases the cost of the service|
|Franchise||The more the cheaper|
|Driver’s age||The younger, the more expensive. If there are several drivers, the cost is calculated according to the youngest driver.|
|Driving experience||The longer the cheaper|
|insurance history||Past accidents increase the cost of insurance|
|Purpose of using the vehicle||When used for commercial purposes, the cost is higher than for personal use.|
In addition, the cost depends on the region of operation, as well as the characteristics of the vehicle: brand and model, year of manufacture, body type, engine power, mileage.
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How to get insurance payout
In order to receive insurance payment, the injured party must apply to the insurer of the culprit with a statement and the following package of documents:
- registration documents for the car (STS, PTS, technical coupon);
- certificate of the accident or a copy of the protocol to confirm participation in the accident;
- a completed accident report form;
- medical certificates and extracts in the presence of injuries;
- bank account details for transferring funds.
After submitting an application, the IC conducts an examination to determine the cost of repairing the vehicle. If the breakdowns can be eliminated, the car is sent to a car service; if the damage is total or damage to life and health is caused, the money will go to the specified account.
The terms for consideration of the application are specified in the insurance contract.
How to choose DSAGO:
- Give preference to reliable SC. Check out reviews and ratings online.
- If the car is not young, choose the option without depreciation.
- The difference between the cost of insurance with different amounts of coverage within a million is small, therefore, to ensure reliable protection, it is worth issuing DoSAGO in the amount of at least 1 million rubles.