Lately the social networks have been riddled with posts either asking to help find the stolen car or asking whether or not someone is looking for this or that plateless car in the picture.    Is Facebook actually helpful in such matters? It’s hard to tell. Meanwhile, the statistics on car theft is dispiriting. In 2015 over 10,000 vehicles have been stolen with only 1/3 of them having been found and returned to their owners.  The numbers are even worse when it comes to luxury cars. Only 1 out of 20 is usually found. What is more, the condition of the cars that are lucky enough to be spotted, leaves much to be desired.  Is it possible to protect your vehicle from being stolen by means of Facebook? Of course, not. On the contrary, CASCO insurance is an effective tool to set your mind at ease.  

Obviously, insurance does not guarantee that your vehicle will be safe. What it does guarantee, though, is that you will have a chance to cover your losses. The indemnity sum depends on several parameters with the deductible amount as well as extent of wear and tear being the most crucial ones. The best way to understand how it all works is by means of calculation examples given below.

1. Wear and tear. Each and every CASCO insurance agreement makes adjustment for annual wear which is equal to 10 % in average. Thus, if at the moment of concluding the agreement the value of the vehicle constituted UAH 700,000, in 6 months its value would be equal to UAH 665,000 (1/2 of 10 %). That’s the sum that will limit the indemnity amount in case of the insured event.
2. Deductible amount for the risk of car theft. Normally this number accounts for 5-10 % of the vehicle’s value. Let’s assume that in our example deductible is set at 5 %. This means that in case the car is stolen, the insured will be entitled to UAH 631,750 worth of indemnity (UAH 665,000 – 5 %).  The good news is that you can get 0 % or 0.5 % deductible upon the condition of paying additional premium.

It’s obvious that national currency depreciation during the term of the insurance agreement will not entail the indexation of indemnity. You will need to increase the sum insured and pay the additional premium to receive enough money from the insurer to cover all the losses in case of the car theft.  If not, you will most probably have to pay the difference from your own pocket in order to buy a new vehicle.

Please note that registration certificate and both car keys must be submitted to the insurance company. Otherwise you will not be entitled to the indemnity at all. Think of this nuance if you ever decide to leave those in your car.  It’s worth keeping in mind that the term of prejudicial inquiry is limited to 2 months. Before this time elapses, your chances of settling your claim are quite vague.  

Though CASCO insurance has its limitations, it still remains the only effective instrument of protecting your vehicle.