Casco and compulsory motor insurance: differences and benefits

Not sure if you know the difference between compulsory and Casco insurance? You are not alone! Even long-time car owners are not always aware of the differences and services provided under each type of insurance. Naturally, coverage might differ from one insurance company to another.

Do you know the difference between compulsory and Casco insurance? Check it out in If Insurance blog.

This article will help you become more familiar with the types and options of car insurance, types of coverage you can procure and things to be aware of when purchasing car insurance. Armed with proper information, you will find it easier to choose the insurance coverage best matching your needs.

Insurance intended to ensure financial security

Nowadays, compulsory motor insurance is obligatory in Estonia. Driving without insurance may result in a fine of up to €400. However, let us not rashly dismiss it as an intrusive burden. With compulsory motor insurance, a minor accident, albeit unpleasant, no longer causes bigger worries.

After completing an accident report, you can forget about damage inflicted to other car owners, as this will be taken care of by compulsory motor insurance. However, this was not always the case.

Until 1993, motor insurance was not compulsory in Estonia and many did not have it. The parties involved in the accident used to have to reach a verbal or written agreement on compensation of damages. Often, such agreements used to become an object of dispute. Without compulsory insurance, it was not only complicated to agree on the compensation of damages, but the unexpected financial costs weighed down heavily too.

Insurance provides certainty, short- or long-term financial security. Seeking for greater financial security, car owners choose casco on top of compulsory insurance.

Compulsory insurance is intended to cover the damage to others

Compulsory insurance (officially, Compulsory Motor Third Party Liability or CMTPL insurance) refers to a driver’s civil liability insurance. This means, if you cause an accident, damage inflicted to other vehicles (specifically, repair costs), persons and property will be covered by the insurance company, which insured your car.

If there are no casualties and you reach an agreement with the other participant(s) of the accident as to who is responsible, it is crucial to complete an accident report without delay. This can be done either by hand, filling in the printed form of the accident report, or report the accident online on the website of Estonian Motor Insurance Bureau.

If you did not cause the accident, car repair costs will be paid by the guilty party’s insurance company. However, if you caused the accident and your car has suffered damage, you will have to cover the repair costs of your car yourself. Unless you have casco insurance – in this case, insurance company will cover the expenses.

Casco – car insurance against selected risks

To simplify it completely, it can be stated that compulsory insurance compensates the damage inflicted to others, whereas Casco insurance covers the damage done to your own car. If compulsory insurance is aimed at protecting the driver from financial expenses compensating the damage inflicted to others, Casco insurance is intended to ensure the protection of your car and your financial security.

Casco insurance helps not just in case of traffic accidents. It also includes thefts, vandalism, natural forces, technical assistance, and other risks. Moreover, this insurance covers accidents both while the car is being driven and parked.

If you have Casco, damage inflicted to the car is compensated irrespective of who the causer of the traffic accident is and also includes other risks relevant for the policyholder. For instance, should you hit the garage door or a fence and damage your car, with compulsory insurance policy only, you will have to pay for the repair costs from your own pocket, whereas with Casco, this will be covered by the insurance company. Naturally, a deductible might be due when applying for the insurance benefit, as is often the case.

What is a deductible?

A deductible (or excess) is the portion of insured loss to be borne by the insured (you) irrespective of the amount of loss. This way, you partially assume the insurance risk. The amount of deductible can be selected when concluding an insurance contract. How does it work?

An example: in a parking lot, you hit another car and damaged the front left fender of your car. Repairs of the fender will cost €800. When concluding an insurance contract, you selected a deductible of €300; this means, the insurance company will compensate €500.

It should be noted that the deductible is not always applied. In certain cases, you can get the repair services with 100% compensation. These terms differ from one insurance company to another.

With If casco, a deductible will not be applied in the following cases:

  • When damage is inflicted to car windows and it can be repaired.
  • If you need roadside assistance.
  • If you need a replacement car or daily allowance for transport during your car’s repair.
  • In case of animal collision.
  • In case your stored tires have been stolen.

What is included in Casco insurance?

Casco is a type of voluntary insurance selected by drivers to ensure financial stability in case of accident by covering the repair costs or providing a new equivalent car. Standard Casco insurance coverage includes the most frequent claims with significant damage:

  • Traffic accident (caused by you)
  • Theft
  • Vandalism
  • Natural forces, such as hail, a broken tree or branch or objects that have been blown away by the wind and fell on a car
  • Fire
  • Damage inflicted because of other sudden and unexpected events (e.g., hitting a fence, curb, roadblock).

Other insurance coverages offered by Casco

Casco insurance is flexible and thus you can choose coverage against various risks. Below are just a few of insurance coverages generally selected by the drivers that might be also relevant for you. It’s worth to mention that If Supercasco already includes several of them, so there is no need to select them additionally.

  • Roadside assistance is probably the most frequently used type of coverage. If you have it, you can get roadside assistance around the clock. 
  • Additional equipment insurance is helpful if you have a roof luggage carrier, bicycle holders, safety seats etc.
  • A replacement car provides a convenient service if your car is to be repaired and you cannot spare it.
  • Mobility service is a new feature particularly important for the residents of big cities. Instead of the replacement car, you can get a compensation for alternative transportation services, such as car sharing, lease, taxi, city bike or scooter rent, and public transport.

Please note that Casco terms are not uniform. Each insurer offers different insurance coverage with different terms.  You can learn more about If casco benefits here.

Do you have an electric car?

Casco can be more important for you than it might seem at first.

If choosing Casco for electric car from If Insurance, we take care of the car as well as the special charging station installed at your home and charging cables.

Compulsory insurance for electric vehicles is the same as for all cars driven by internal combustion engines. The price of insurance is set by an insurance company subject to a multitude of criteria, with the fuel type being just one of them. Nonetheless, when selecting Casco insurance, find out if insurance coverage is adjusted for electric vehicles.

Electric cars, like cars with internal combustion engines, get into the same traffic accidents, where various parts of bodywork, windows and lights are damaged, tyres get punctured, or wheel rims broken. The difference lies in the fact that the average claim of regular cars is around Eur 1,300, whereas the average claim with electric vehicles amounts to approximately Eur 2,000.

Owners of electric cars — we have a special Casco coverage for you

Some insurance companies offer the drivers of electric cars extended Casco coverage that includes not just car insurance. If you choose electric car Casco insurance at If, we take care of the car as well as the special charging station installed at your home and charging cables.

Should the charging equipment be stolen or damaged during accident, If Insurance compensates damage up to € 2,000. Furthermore, with this insurance, roadside assistance is provided 24/7 including situations, when the vehicle has to be transported to the nearest charging station due to an empty battery.

Did you know that car insurance price considers also driver's experience? Learn more in If Insurance blog

How much does car insurance cost?

We have already discussed the differences of Casco and compulsory insurance and introduced the possibilities and similarities. Are you curious to know the cost of insurance? 

If you already have a car, you can get the answer to this question in a matter of minutes. There is no need to go anywhere; you can find out the Casco price and compulsory insurance price as well as purchase insurance online. By the way, please note that although the car and its holder are the same, the price of insurance in different insurance companies may differ.

What does the compulsory insurance price depend on?

Sometimes, your acquaintance who has the same car as you might pay a substantially different price for compulsory insurance. How is this possible? Here are some factors that affect the insurance price:

  • Driver’s experience. This is due to the trend that young and less experienced drivers cause accidents more often.
  • If you drive safely and do not cause accidents, you will be offered better prices.
  • Traffic intensity in your locality. In territories with greater traffic intensity, traffic accidents are likely to occur more often.
  • Engine power. This might also be one of the price determinants. The more powerful the car is, the greater the challenge to control it and the risk on the road.


How much does Casco cost?

Generally, Insurance companies offer several Casco options for you to be able to determine your needs and choose the most suitable option for you. Consequently, Casco price might be determined by your choice.

Several ways to reduce the Casco premium:

  • Choose only what is important for you. For example, imagine that your car is to be repaired for a week. If this would put your life on a hold entirely, opt for Casco with a replacement car. In the meantime, if you can work from home, walk or use public transport, this service is not essential for you and you can choose the option with the replacement car not included.
  • Choose Casco with the highest possible deductible — this way the insurance premium will be lower.
  • If it is unconvenient to pay for the entire longer period at once, choose payment in installments. In If, no additional fees are added to payment in installments, so the price for the entire period will remain the same.

Moreover, keep in mind that careful driving and avoidance of accidents is a reliable way of obtaining a good insurance price. Insurance companies always appreciate a responsible driver.

Driving carefully and avoiding accidents is a reliable way of obtaining a good insurance price. Check the price for your car in If Insurance.

Myth or true: answered by an insurance expert

As in every field, in insurance, unfortunately certain misleading preconceptions are prevalent. Danas Dilys, motor insurance product manager at If, is ready to dispel the most popular myths about car insurance.

1. Casco is important for owners of brand new cars only

Not true. Security systems help to avoid traffic accidents and minor incidents, that’s right. However, it cannot be said that there are significantly fewer accidents with newer cars. Furthermore, practice shows that casco is just as necessary for older vehicles, because the damage caused by an accident is quite significant to manage on its own.

2. Insurance is expensive

Not true. Insurance is intended to ensure financial security and to avoid unexpected financial expenditure. In 2023, an average Casco claim amounted to approximately Eur 1,300 and that of compulsory insurance – to Eur 1,800. This exceeds the average insurance premium by several times. It is, therefore, incorrect to state that insurance is costly.

3. Casco is more expensive for new cars

Not true. Casco insurance for new cars often costs even less than for a car that is several years old. New cars not just break down less often; they also have more security systems installed. Automated breaking is one of them. This system significantly reduces the number of minor collisions on city roads.

4. Insurance coverage may not be changed once insurance has been purchased

Not true. You can adjust the deductible or Casco insurance option any time. To do this, contact your insurance company directly.

5. Insurance for a young driver will be less costly if purchased in the name of their parent

Not true. The insurance premium may be somewhat higher, but a young driver will also need an insurance history record for the future. This knowledge increases responsibility and calls for caution in traffic, because their behaviour in traffic will affect the insurance premium in the future.

Compulsory and Casco insurance – long-term financial security for you

Casco and compulsory motor insurance are two separate types of insurance. If missing a compulsory insurance policy is unthinkable nowadays and will incur a fine, Casco is voluntary insurance for your convenience.

With compulsory insurance and Casco on top, you can rest assured that in case of accident you will avoid substantial financial losses. Moreover, the insurance company will take care of the repair costs as well as arranging the repairs of your car.

When searching for the most suitable insurance option for you and you are curious about If casco opportunities, use the insurance calculator and carefully familiarise with the coverage you are getting. Prices can be checked, and insurance can be purchased online within a few minutes.