What is the difference between casco and compulsory traffic insurance?

Although comprehensive motor insurance (casco) and compulsory motor third-party liability (traffic) insurance both relate to vehicles, their scope and who they protect are different. Having one does not replace the other.

Compulsory traffic insurance

This is required by law. If you cause an accident, it covers the damage you cause to the other party's vehicle and to other people, within the coverage limits of the policy. It does not cover damage to your own vehicle.

Casco

This is optional. Depending on the coverage in the policy, it covers damage to your own vehicle (such as accidents, theft, fire and natural disasters). The scope varies from policy to policy.

Points to watch

• Read the coverage limits and the deductible (the amount you bear yourself).
• Check the exclusions in the policy; not every loss may be covered.
• After an accident, collect the accident report and photographs in full, and report the loss without delay.
• Where the loss exceeds the limit, discuss with a lawyer how to recover the difference.