Protecting your car from missiles and drones: How KASKO insurance can be beneficial during wartime.
CASCO for Everyone: What Programs Companies Offer and Their Benefits
CASCO programs differ in their coverage (the risks that the policy covers), duration (policies can be for 3 or 6 months), and price.
An interesting trend is the increase in the maximum age of insured vehicles set by insurers. Not long ago, many companies imposed a limit of 10 years from the year of manufacture, but now offers to insure cars that are 12-14 years old are becoming more common.
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Currently, all companies offering CASCO insurance are ready to present clients with several policy options. The programs vary in coverage (the risks that the policy covers), duration (policies can be for 3 or 6 months), and price. Many factors influence the insurance cost, but the base for calculations is the insured amount of the policy.
Today, insurance companies focus on creating universal and flexible CASCO packages that meet the needs of various customer categories. According to Olga Ivantsova, budget CASCO packages are becoming increasingly popular due to their affordability and emphasis on covering key risks. "The cost of such packages is generally lower to meet the needs of clients with limited budgets. Medium and high-level programs provide comprehensive protection. In addition to budget programs, those with maximum quality coverage are also in demand. They may include additional coverage in the form of extra insurance policies. For example, the INGO Autoexpert policy provides comprehensive coverage, including protection for the car, additional equipment, the life and health of the driver and passengers, as well as extended liability coverage towards third parties," Olga Ivantsova explained.
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Risks Covered by the Policy: What CASCO Insurance Covers and What Exceptions Exist
Comprehensive CASCO provides thorough protection for vehicles against a wide range of risks. This includes coverage for expenses due to damages from road accidents, natural disasters, falling objects, fires and explosions, unlawful acts by third parties, and vehicle theft.
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"Military risks, which are increasingly included in policies, cover losses caused by falling debris from missiles or drones, shock waves, fires, or collisions with military equipment. Such a CASCO policy allows vehicle owners to feel secure in any situation. It guarantees that in the event of unforeseen circumstances, clients can restore their vehicles without significant financial burden," explains Konstantin Vatan.
As noted by Olga Ivantsova, the territorial coverage of the policy, in addition to Ukraine, may also include European countries. "Any legally qualified driver can be behind the wheel of the vehicle at the time of the accident," the expert says.
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There are also other exceptions. In particular, the insurer will not cover losses if the driver left the accident scene without notifying the insurer or repaired the vehicle before it was inspected by the company's representative. "Losses are not covered if the vehicle was used as a taxi or rented out, unless this was specified in the contract. Damage solely related to tires or wheels, hydrostatic impacts, fires due to electrical system failures, and damage caused by animals during improper transportation are also excluded," Konstantin Vatan explained.
Military Risks: How Insurance Companies Compensate Losses Related to Military Actions
Insurance companies most often include a list of military risks in CASCO insurance contracts. Sometimes companies offer separate insurance policies that only cover such risks; however, there are often policies that already include military risks along with other risks. Specialists note that standard policies may have a limit on military risks, for example, 10% of the insured amount, but not exceeding 300,000 UAH. Within this amount, the insurer will provide compensation if the vehicle is damaged by a drone strike or debris from missiles or UAVs.
Common military risks covered by CASCO insurance policies include:
- falling missiles,
- falling drones,
- falling air defense systems and their debris,
- shock (sound waves),
- fires resulting from military actions,
- collisions with military equipment.
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"For instance, in the 'Reliable CASCO' policy from ORANTA, military risks are included in the standard coverage without a rate increase, but with a limit on military risks of 2 million UAH. This means that if a vehicle is damaged due to war, the vehicle owner can expect compensation for damages not for the full insured amount, but up to 2 million UAH. Other classic risks are covered for the full insured amount specified in the insurance contract," Konstantin Vatan explained.
The expert clarified: vehicles can be insured under CASCO even if they are registered in areas close to the front. "However, if damage from military risks occurs specifically in these territories, the company will not provide compensation. Classic risks are fully covered across the entire policy territory," Konstantin Vatan noted.
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Demand for protection against military risks is continuously growing, says Olga Ivantsova, and therefore companies are understanding of the needs of vehicle owners and offer the option to purchase such a policy separately from full CASCO. "Such a policy costs significantly less than traditional CASCO — the rate for this policy is 1.65% of the insured amount (traditional CASCO typically costs around 4% to 7.5% or more). Any passenger vehicle with a service life of up to 12 years and a value of up to 6 million UAH can be insured. Unfortunately, vehicles used in temporarily occupied territories and areas with active combat operations will not be accepted for insurance solely against military risks," Olga Ivantsova explained.
Cost of Protection: How Auto Insurance Prices Change and What to Expect in 2025
The standard cost of CASCO currently ranges between 4.5% and 8.5%, and the price of the policy is calculated based on the insured amount, taking into account the model and age of the vehicle, the number of risks covered in the CASCO program, as well as the presence of a deductible. Overall, one can purchase an annual CASCO policy for as low as 5,000 UAH or as high as 20,000-30,000 UAH. However, in the first case, it does not refer to full CASCO — this could be a program covering a single risk (for example, an accident caused by the policyholder), and a key point is the insured amount: programs with an insured amount of 50,000 UAH will always be cheaper than policies with an insured amount of 600,000 UAH.
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Insurance companies noted that the cost of CASCO is unlikely to see significant increases this year, as new approaches to loss settlement within Auto Liability Insurance will shift a substantial portion of claims that were previously covered by CASCO policies onto Auto Liability Insurance. According to Olga Ivantsova, this will reduce risks for insurance companies. "Reducing risks related to frequency and volume of payouts allows companies to adjust their prices towards affordability for clients. We predict that this trend will continue in 2025, as the reduction of risk remains a key factor influencing pricing," Olga Ivantsova stated. She adds: final pricing for CASCO policies in 2025 will balance between risk reduction and the influence of external economic factors. However, clients can expect more attractive rates due to increased efficiency of insurance products.
The price of the policy is calculated based on the insured amount, taking into account the model and age of the vehicle, the number of risks covered in the CASCO program, as well as the presence of a deductible.
However, specialists do not rule out a possible slight increase in the cost of CASCO policies in 2025. The cost of CASCO policies has already risen due to increased vehicle repair costs, which are attributed to difficulties with logistics of spare parts, rising prices for energy resources, and economic challenges. "We expect that in 2025, rates may rise due to the continued influence of these factors. However, thanks to a wide range of products that include 'packaged' offers and additional options, each client will be able to choose the optimal balance of price and coverage," Konstantin Vatan concluded.