Buying a car, especially a new one, is always a joyful event. And using loan funds you can make such a purchase immediately, even without having the entire amount. Today, banks offer quite interesting conditions and quite reasonable interest rates. In addition to interest, many lenders provide, as security, CASCO insurance for all types of vehicles that are pledged. Consider the conditions under which CASCO is offered for a credit car.

Such insurances are primarily beneficial for banks. The policy is mainly designed to avoid possible troubles associated with damage, destruction or theft of a pledge car.

Credit organizations try not to put their funds at particular risk, therefore, refusal of insurance sometimes leads to a refusal to issue a loan, although the legislation does not provide for the mandatory nature of this procedure. The main interest of the mortgagor is to keep the pledged property in such a condition that it will be possible to sell it in case of a certain situation. Thus, the bank will compensate for material damage if the payer on the loan is unable to return Money.

To solve such situations, the obligatory registration of CASCO by the borrower is provided. Lenders offer insurance only in those insurance companies that are accredited by them and in which they fully trust.

The term of CASCO insurance is 1 year. If the client does not have funds, the bank may offer to include the cost of CASCO in the amount of the loan issued, for a year or the full term of the loan. For this, banks usually increase the amount of the down payment.

How to apply for CASCO on a credit car

The CASCO procedure is very simple and includes several main steps. For your convenience, we suggest that you familiarize yourself with the insurance procedure.

Use the calculator	The first thing you have to do is use the handy calculator on our insurance portal. To receive an estimate, please be prepared to provide: brand and model vehicle year of issue mileage market value driver data: age and experience the presence of an anti-theft system term of insurance the region in which you wish to receive a CASCO insurance form. After all the necessary data is correctly specified, you will need to click to get the calculation. The resulting calculation will indicate the program and the amount of the insurance premium for each insurance company. All you need to do is to carefully study the conditions and submit an application for registration.
Submit an application	It should be noted right away that it will not work to issue CASCO in real time. All insurance companies issue the product exclusively in the office, after checking the full package of documents and inspecting the vehicle.
Make an appointment	As soon as an authorized employee of the insurance company receives your application, he will immediately call you and specify a convenient time and date for a visit to the office. Also during the conversation, the company specialist: once again say the amount of the contract and the insurance program tell the conditions tell you what documents are needed
Prepare documents	When contacting the office of the insurance company, you must have a complete package of documents with you. As conducted, the list of documents in all companies is the same and includes: personal passport of the owner of the vehicle document on the car confirming the right of ownership (PTS) driver's license of each participant in the movement pledge agreement, since the vehicle is purchased on credit contract for the purchase and installation of additional equipment If more than 3 years have passed since the production of the vehicle, the insurer may additionally request a diagnostic card form to make sure that the vehicle is in good condition.
Provide a car	The owner of the vehicle will be able to receive the form of the voluntary insurance contract only after an authorized employee conducts an inspection. Please note that you must provide a clean car for inspection, with a full set of keys.
Get a set of documents	The last thing left to do is sign all the necessary forms and receipts, make payment and receive a set of documents in your hands. At the end of the visit, the motorist should have in his hands: original CASCO policy insurance premium check inspection report of the vehicle, in which all existing damages are recorded insurance rules a memo that clearly states what needs to be done in the event of an insured event

As you can see, the voluntary insurance procedure is very simple and will take no more than 30 minutes. Thanks to the Internet, you can choose the insurance program that suits you and avoid additional services, as a result of which the cost of the product will be significantly increased.

Also, thanks to the electronic application, you can remotely discuss all the conditions under the CASCO agreement and sign up for a meeting at any time convenient for you.

How do the conditions under the loan agreement change when applying for insurance

The presence of such insurance makes it possible to obtain a loan on more favorable terms with a minimum package of documents and at a lower percentage than in its absence.

Lenders that provide more loyal claims can increase an initial fee, interest rate and the need for the borrower to provide other additional costs. Also expanding the package of documents confirming financial condition client and his official employment.

The requirements of banks to car sellers are also very different. Some banks cooperate only with car dealers, others work with any car dealership, subject to confirmation of a complete diagnosis. The presence of such requirements provides for additional financial costs, and it will take a lot of time to carry out such events.

Is it possible to reduce the sum insured?

To save their money, when applying for CASCO, some car owners conclude an insurance contract with the condition that a franchise is included.

The type of franchise can be expressed as a percentage of the amount of the contract, or as fixed rate. This service allows you to reduce the cost of insurance, however, in the event of an insured event, the deductible amount is deducted from the amount of each insurance indemnity.

Therefore, if there is a franchise, minor damage resulting from an accident, the driver will have to restore at his own expense. This type of insurance is not accepted by all banks, therefore, before concluding an agreement, it is necessary to clarify with the lender the possibility of such insurance.

The sum insured under the contract can be:

Many insurance companies allow payment insurance premium in installments, though for such a service there is the possibility of increasing it. Before taking out insurance under these conditions, it is necessary to clarify whether such insurance is accepted. financial institution.

Do I need to renew insurance

The answer to this question must be sought in the loan agreement. As a rule, in the absence of a pledge insurance agreement, banks provide penalties in the form of an increase in interest rates or provide for the confiscation of the vehicle. There is also a risk of theft or the possibility of getting into an accident.

In the absence of the possibility of restoring the car, the entire responsibility for repaying the loan falls on the car owner. Collateral property is insured for the amount of debt on the loan, so the amount of insurance will decrease.

Often, an insurance contract is concluded with the possibility of its extension. In this case, it turns out quite economically. If you are no longer satisfied with the rates of your insurance company, and another offers better conditions, you can change it if you wish. Therefore, the decision to extend the insurance is up to each individual.

Why CASCO for a credit car is more expensive

It is no secret that when calculating the cost, you can replace that the cost of credit insurance is several times higher. What is the reason for this difference? Everything is very simple! It is no secret that insurance companies are actively cooperating with insurers. As a result, they offer to issue the product directly in their office.

For their services, lenders receive an agency fee in the amount of 10-20% of the cost of the product. It turns out that the higher the cost of the insurance contract, the higher the amount of income. That is why lenders are trying to "hang" as many options as possible, which lead to a rise in the price of the product.

When buying a car on credit, most banks also require you to create. Given that this will cost some money, many drivers do not want to pay for an optional feature, wondering how to avoid CASCO and what will come of it.

Few motorists want to overpay for CASCO

Why is a car on credit insured under CASCO?

Making insurance is most beneficial to the bank that provides the loan. The policy is made in order to avoid potential troubles. Lenders do not want to risk their funds by forcing the car owner to purchase insurance with their own money, otherwise refusing to issue a debt. Despite the fact that such actions are not described anywhere, the procedure is recognized as mandatory in almost all banks. It all depends on the terms of the loan.

The main difference between buying a car on credit is that until the full payment, the vehicle belongs to the bank and becomes its property if the client fails to repay the loan. Thus, it is in the interests of the company to keep the car in the best possible condition so that it can be sold if necessary. Most often, the risks are minimized precisely by entering into the mandatory conditions for issuing a loan, the registration by the borrower of CASCO, which obliges him to compensate for material damage to the bank in the event of theft or destruction of equipment.

In this case, the borrower also receives benefits, because in the event of an insured event, he can count on compensation for damage by repairing a car with the money of the insurer. Another plus of mandatory CASCO is the opportunity to get more favorable loan terms, since the interest rate for a transaction without insurance is usually higher.

Often, the bank's default conditions include insurance services partner company, which is a violation of the rights of the borrower. The client himself chooses in which company to draw up an agreement - the presence of CASCO is considered mandatory.

In what situations can you do without insurance?

They may refuse services if the car that the client is going to purchase is older than 10 years. When purchasing a car in the secondary market, using a car loan, it is enough to bring to the bank several written refusals to issue CASCO from different companies. The main criterion is the age of the car - 10 years and older.

In case of early repayment of the loan, maintenance of CASCO is carried out at the discretion of the car owner. Cars that are not registered with the traffic police are not subject to CASCO insurance. To create a policy, a full package of documents is required, among which are the title and vehicle registration certificate.

When is insurance required?

When buying a car in a car loan in the cabin, you cannot do without CASCO. Few banks are willing to compromise, offering to significantly change the terms of insurance at the discretion of the client. Thus, you can issue a payment once a quarter or half a year.

However, this practice is quite rare. Most often, the bank offers a loan on its own, strict conditions, where insurance premiums are paid in a convenient schedule.

CASCO for the second year of the loan

After the first year of car operation, many drivers are interested in whether to take out insurance for another year. The answer depends on the conditions specified in the loan agreement. Of course, the bank wants to minimize the risk of accidents with the car, which is the property of the lender until the loan is repaid, and therefore dictates its terms to the borrower.

Is it possible to refuse insurance for the second year and how to do it

Many car enthusiasts consider it unfair to issue CASCO for the second year, which is why they ask a lot of questions about how not to renew it. The answers are quite contradictory, because each person describes his own experience, and banks often differ in terms of lending.

In some cases, the borrower is advised to ignore the statements of creditors regarding the extension of CASCO. It is believed that a client with a good credit history Forgive so as not to spoil the relationship. In some situations, such actions lead the driver to the desired goal.

At the same time, banks most often take care of the terms of the loan, providing for the client's desire to refuse insurance. In this case, lenders introduce a list of penalties, such as an additional percentage of a car loan, an increase in interest rates, or confiscation of a vehicle. Thus, the opportunity to refuse CASCO without consequences is individual and it is worth learning about it from the terms of a specific contract.

Specifying the allowance for interest rate, the driver can calculate whether it is more profitable for him to pay a fine or extend the insurance. For example, if the rate increases by 0.5% of the amount of 560 thousand rubles, the fine will be 2800 rubles, and annual insurance can cost about 70 thousand rubles. In such cases, the borrower can indeed ignore the bank's notices and reap the benefits. This method has serious risks, since if the car is stolen or rendered unusable, all responsibility falls on the shoulders of the client.

There is also an option to insure the car only against theft. Many insurance companies provide this type of service, allowing you to save tens of thousands of rubles on the full CASCO package. This method may not work if bank managers carefully check the client's insurance and are not satisfied.

In order to save money, you can also apply for CASCO with a franchise. The principle of operation is as follows: for small ones (the amount will be indicated in the contract), the driver pays for repairs himself, and in the event of an insured event of this type of protection, the company itself compensates for the costs, whether it be a major accident or theft. Savings will be about 40-50% with a franchise of approximately 9,000 rubles. Managers react positively to such a policy and will not charge a fine.

How is CASCO calculated for the second and subsequent years

Two factors affect the cost of accident insurance after the first year:

• Accident-free operating history. If the driver has established himself as an accurate client who does not incur losses, the insurer will most likely make a significant discount on CASCO for the next year. It can also be obtained when changing companies - it is enough to bring proof of driving without accidents.
• Car cost. Given that all cars become cheaper over time, the price of insurance services may fall after. If a new vehicle cost 500 thousand rubles, then after a year or two this figure may decrease by about 10%, which will lead to an equivalent reduction in the cost of CASCO.

Based on these conditions, it becomes clear that The best way take out insurance - do it for the first year with a subsequent extension. In this way, you can save a significant amount of money, about which many. It should be borne in mind that you can make a CASCO policy in another company, if the tariffs in the current year have increased and repel the client, and other companies look more optimal.

There are cases when the tariffs of one insurance company became very expensive over the year, which reduced the benefit from accident-free operation and the monthly discount to zero, or the extension of CASCO became more expensive at all. It is in such cases that it is worth considering the option of changing the insurer. For the most convenient calculation of the cost in a particular company, there are CASCO calculators.

What awaits a driver who does not pay insurance

The consequences of non-payment of CASCO security depend on the terms of the contract. Most often, they are aimed at obtaining benefits by the bank, which puts the borrower in an unpleasant position, recognizing his actions as a violation of the terms of the loan. The creditor may take the following measures:

• Termination of an agreement;
• Requirements for early payment of the remaining amount;
• Tougher change in the terms of the contract in favor of the bank;
• Recovery of a fine from the borrower for violation of the terms of the contract.

Conclusion

Among the many offers of insurance companies, you need to choose the most suitable services for the car owner. CASCO should be concluded for one year, so that after its expiration it will be possible to receive a discount on renewal or even change the company providing services. Actions should be taken according to the situation described in the loan agreement.

Many of us take car loans from a bank - is it good or bad is the second question! However, with a car loan, there is such an unpleasant thing as CASCO! And if you take a car for five years on credit, then you must insure all five years! And now with modern prices for insurance, it is not very cheap! If you calculate, then sometimes - CASCO for five years is equal to the cost of your car! Which is almost absurd! Of course, everyone is insured for the first year, but in the second year, many are wondering - is it possible not to pay this “circular insurance” with a car loan for the second year? Or is it still necessary? Today I will answer this question for you, and also give you a few useful tips how to REALLY avoid predatory insurance for the second and subsequent years. So read on...

To be honest, I touched a little on the topic of CASCO for the second year. BUT today only about legal methods of circumvention.

Personally, I took a car loan at VTB 24. And if you raise the contract, it turns out that I have to insure my car under CASCO every year! And moreover, he must personally provide information on insurance to the bank, that is, no one will control me!

What is the price of CASCO

What happens to me! The first year (it was 2012) when I insured a car under CASCO cost me about 36,000 rubles! Certainly expensive, but tolerable!

The second year, the same insurance company counted me about 70,000 rubles! Moreover, there were a lot of reasons for this rise in price: - Firstly, the rise in price of insurance in 2013! Secondly, the car is in its second year and therefore the multiplying factor works. Thirdly, as the manager of the insurance company explained to me, this car is very often broken, that is, “dishonest” insured events are used for enrichment.

In general, the amount of 70,000 rubles and not a drop lower, even my long accident-free experience did not work! Calling other companies, I found out that the amounts are approximately the same for everyone, the minimum that I found is 64,000 rubles! Less of course, but also a lot!

If you calculate, then insurance for the remaining 4 years of 70,000 rubles each would cost me 280,000 rubles! And given that for a 3 - 4 - 5 year old car, insurance would be even more expensive, then the approximate amount after these 4 years would be equal to 300 - 350,000 rubles! And my car costs only 560,000 rubles! It turns out almost 70% of the cost of the car! I really don't like this layout. And so I decided to find a way out!

How to bypass CASCO (only legal methods)

1) Just do not pay and do not provide information to the bank! "How" - you ask? Yes, everything is simple! Again, we climb into the same agreement that is written there - If the borrower does not insure the car and does not provide information to the bank, then the bank has the right to increase the interest rate by 0.5% per year! That is, I had 13% per year, if they increase it, it will turn out 13.5%! Unpleasant! It's true! Now let's turn on the brain! Well, they will increase the payment by half a percent, how much it is from my car - 560,000 rubles. X 0.005 = 2800 r! And insurance for a year is 70,000 rubles! Feel the difference? We just don't pay! And moreover, after paying off the entire amount for the car (whether ahead of schedule or not), you may not be asked for this insurance! Well it's written right there - at the discretion of the bank ! A couple of my friends were already extinguished ahead of schedule, and in the second year they were not insured under CASCO! And no one asked anything, it is profitable for the bank to receive their money and interest, and in principle they are far from insurance! There is, of course, a minus of such a scheme - the car is not protected at all (you need to set security systems), that is, if you steal or break, then all the costs are fully borne by you! Especially if you are a beginner at the wheel and your car is in the yard (and not in a guarded area)! Here you want it, you don’t want it, but you will think about insurance five times! Therefore, there are a couple more schemes that are more correct!

2) Theft only insurance (). Here the sheep are safe and the wolves are "almost" full. The essence of this insurance is that you are insured - only against theft! Now many insurance companies work in this way, because their risks are minimal! What do we get? For example - for my car, protection only against theft in different insurance companies varies from 6,000 to 9,000 rubles, and you are given a CASCO policy, etc.! Here is a small insert from one website of an insurance company, I will not advertise, but it is clear in the calculation that the theft is only 6,000 rubles.

Cheap? Of course yes! But protection only from theft! From an accident and any other damage, it will not protect! What do we do next, we call the bank and say that they say there is an insurance policy for the second year, everything is fine (I got insured), I can even dictate the number and series to you, etc., but I can’t drive up (very busy) or I can only after a couple months because now on a business trip! As a rule, after a couple of months they will forget about you, they already have “full mouths” of worries, and credit specialist write down your series and number! And you don’t have any fines from the bank! YES, and the car is a little protected - at least from theft! But then again - persistent bank managers may get caught, or you are not an experienced driver and you still need full insurance (because you drive badly), then we read point 3!

3) CASCO with a franchise. Of course, this is more expensive than the first two options, and much more! BUT there is almost complete protection (you can read the article -). The bottom line is that you agree to restore small damage (accident up to 5,000 - 10,000 rubles) at your own expense. Well, for example, they scratched the bumper, or broke the headlight, etc. And for this, the insurance company gives you a discount sometimes of 40 - 50% of the total cost of insurance! I was personally offered 35,000 rubles (with a franchise of 9,000 rubles). The same lot, but plus if a serious accident or theft, then everything is covered by insurance! This also has its advantages. Moreover, bank managers look at such insurance (with a franchise) quite normally, we just bring it to the bank and that's it, no fines.

As you can see, it is quite possible to bypass or save on CASCO for the second year, the main thing is to turn on the brain! At the same time, it is worth soberly assessing your driving experience, for example, how often you get into an accident, because the main plus of circular insurance is full compensation for damage. If you have recently driven a car, then it may be worth taking full insurance.

Update April 7, 2015

Guys - in order not to be unfounded, I will tell my situation. Today, namely on April 7, 2015, I "repaid" a car loan, but the question arose of obtaining a title deed from the bank's collateral. And since the last year I didn’t insure the car at all and didn’t call the bank, I was a little nervous, but everything worked out.

The bottom line is this - on April 6, I made the last payment, the bank employees needed 1 day for the system to work, and set that the loan was repaid - the next day it was possible to pick up the documents. I arrived, went to the car loan department - sat down with the manager - said that the loan was repaid, I want to pick up the TCP - he started checking something (I got a little nervous) - but then he said that everything was in order - he took my documents out of the closet - I signed the ACT that took TCP and EVERYTHING! There are no fines and sanctions, so with regard to VTB, we can say with confidence that you can pick it up even without CASCO, no one will impose its presence and fines on you (although there is a clause in the contract, the main thing to remember is at the discretion of the bank)! By the way, here is a photo as proof.

Do you want to take a test on the materials of the article after reading it?

YesNot

When applying for a car loan, one of the main requirements of most banks is the registration of voluntary insurance for a car purchased on credit. Since when receiving a loan, the vehicle becomes collateral, credit organizations try to secure the transaction as much as possible, forcing them to purchase insurance that would provide financial protection in case of damage or loss of the collateral.

Is this insurance required for a car loan?

The law, establishing the obligation to purchase a civil liability policy (OSAGO), does not provide for any other requirements. Since such an insurance contract is concluded on a voluntary basis, the question arises whether it is possible to refuse CASCO if the car is on credit.

This system works on the principles of voluntariness, i.e. the motorist independently decides whether he needs it or not. On the one hand, the owner of the vehicle is insured in case of a road accident, theft, or other damage to the car, regardless of the fact who is responsible for the event. On the other hand, the costs of voluntary insurance are quite significant.

However, the principle of voluntariness fades into the background when a car buyer applies to a financial institution to get a car loan with CASCO. The fact is that successful consideration of the application and low interest rates, in most situations, are possible only if the owner is ready to bear the costs of CASCO.

When agreeing on the conditions for granting a loan, banks support their requirements with references to the current legislation:

1. According to part 10 of Art. 7 of Law No. 353-FZ, the object of lending transferred to the borrower is subject to insurance.
2. In pp. Clause 1, Article 343 of the Civil Code of the Russian Federation establishes the right of credit institutions to demand a policy as mandatory security for a collateral object, since car loans, most often, are associated with the need to transfer the vehicle as collateral.

Based on these standards, the financial institution reserves the full right to use the CASCO waiver when substantiating a negative response to the application.

Summarizing the above, we can draw the following conclusions: since the legislation does not require car owners to conclude a voluntary agreement, this service is purchased at the request of the borrower, but its purchase will give high chances for loans on favorable terms.

If this is not a principal cost item for the client, it is recommended to simply take measures to reduce the cost (franchise, installment plan, etc.) Otherwise, you need to study the topic of how to refuse, and how not to pay for additional insurance .

Why banks impose CASCO

According to reviews of car owners who used the standard offer of the bank, the final overpayment on the loan is often comparable to the price of the second car. Of course, a lot will depend on the interest rate and the length of the repayment period, but the cost of an expensive policy becomes a serious expense for a borrower when buying a car.

Faced with persistent advice to draw up an agreement with an insurer, you need to understand why credit organizations require you to draw up a policy. There are several real reasons:

1. The buyer has little driving experience, which increases the risk of an accident and damage to the loan car.
2. The income of a potential borrower raises doubts about the future solvency and timely and full repayment of the loan.
3. The vehicle selected for purchase has high mileage and is at risk of frequent breakdowns and repair costs.
4. The pledgee must have additional guarantees for the safety of the property that serves as collateral.
5. Since the collateral car will be owned by the financial institution until the debt is completely closed, additional guarantees for the safety of property are needed.
6. When a car is damaged in an accident, a citizen continues to make monthly payments without worrying about the need for additional expenses for vehicle repairs.

With CASCO, the following options for obtaining compensation are necessarily provided:

In any case, the lender who provided the funds to the motorist has the maximum guarantee that the entire amount owed will be returned with interest, regardless of changes financial position or the state of the vehicle.

How to avoid car loan insurance

Many motorists, instead of purchasing CASCO for a credit car, prefer to use non-purpose lending (consumer credit). In this situation, it is not necessary to draw up a voluntary auto insurance contract for the acquired property. Even in the case of loans under high interest, the overpayment on a loan with lifetime auto insurance may exceed the overpayment on a consumer loan. In addition, the car remains in full ownership of the driver, without becoming an object of collateral for the lender. However, this option is preferable only when a person is confident in the quick repayment of the loan, and his driving style is calm and accurate, which significantly reduces the risk of getting into an accident. Any citizen retains the right to choose a banking program.

If the motorist has decided to refuse CASCO for a car loan, and the conditions of the financial structure make it possible to do without it, the buyer must be ready to revise the offer. The following situations are possible:

1. An increase in the interest rate.
2. Providing additional financial support, pledge of other property.
3. Reduction of the repayment period.
4. Reducing the maximum loan amount.
5. Increasing the share of the first installment to half the cost of the car according to the conclusion of the appraisers.
6. Providing additional documents confirming solvency, as well as preparing certificates of a sufficiently high level of income.
7. Considering the possibility of buying a car from the list of those offered by the bank itself.

There is another alternative way– insist on your right not to issue a policy for your vehicle, since the law does not oblige the owner to do this. During the discussion, the future motorist can remind the employees of the department about the rights of the consumer, allowing not to insure the car at his own discretion.

It is difficult to predict the result of negotiations with the bank, but such behavior of the client increases the risk of being refused the issuance of borrowed funds, because the credit institution is not at all obliged to issue a loan to each applicant for a loan. The refusal will not affect the decision of the lender if the funds are received under consumer credit where the interest rate is higher and the loan amount is lower.

Is it possible not to pay CASCO for the second year

If at the time of issuing a loan, each bank tries to secure the transaction as much as possible, then in the second year of repayment, the financial situation of a person may worsen, which will entail new doubts about the validity of spending. When the car is on credit, what will happen if you do not pay CASCO for the second (third) year, you can find out from the terms of the loan agreement.

If in the first year the motorist has established himself as a conscientious payer, making amounts in excess of the monthly installment, or the borrower used other banking programs (opened a deposit, paid for another bank service), the lender may reduce the requirements. This will allow you not to pay CASCO for a car loan for the second year.

In some situations, the credit line is opened for only a couple of years, which means a significant reduction in the balance of debt by the second year of repayment. It is unlikely that an institution that is confident in its client and its reputation will demand early repayment of the loan due to refusal to pay for the second year insurance.

Doubts about whether it is necessary to issue CASCO for the second year of lending intensify as costs rise. People are often faced with price increases when the vehicle itself has fallen significantly in price. Even if there were no insured events for which payments were made during the year, the costs for the second year may be higher due to an increase in tariffs within the company. In such a situation, it is recommended to change the insurer after considering more profitable offer on the car according to CASCO.

When deciding for yourself the issue of insurance, you must first study the clauses of the car loan agreement. This will allow you to understand what consequences are set for refusing to purchase in the second year of payments:

1. An indication of the borrower's obligation to insure a car under a voluntary system every year requires strict compliance with the clause. Only in agreement with the bank is it possible to refuse for a 2-year loan.
2. Another situation is when the clauses of the contract do not indicate the obligation to draw up a contract for voluntary auto insurance. No requirements of the bank will be valid if this need is not indicated in the contract.
3. The clauses of the contract may contain information that the borrower must conclude an insurance agreement by the time of the transaction, which automatically releases from further obligations for subsequent insurance periods.

Before you stop paying insurance, you need to study the clauses of the contract, which indicate whether it is necessary to do CASCO for the entire period and what are the material and legal consequences of violating the terms of the agreement (fines, penalties, delays). If there is information about penalties, the bank will be able to legally demand payment not only of the debt on the loan, but also the payment of all fines accrued in accordance with the agreement.

If you refuse to pay, you may face an increase in interest rates. In this situation, it is recommended to calculate how much the overpayment on the balance of the debt will be higher than the cost of the annual policy. If there is no overpayment, but, on the contrary, there is a final saving, the refusal will be justified.

As an example, consider lending programs at VTB24 in 2017:

1. With insurance, a loan is issued at an interest rate of 12.9% per annum. When applying for a credit line for 500 thousand rubles for 3 years, the overpayment of interest will be more than 105 thousand rubles.
2. Without insurance, the rate rises to 15.9% per year. Under similar other conditions, the overpayment of interest for a 3-year period will be about 130 thousand rubles.

Obviously, in the absence of voluntary insurance, the cost of overpayment for 3 years will be only 25 thousand rubles, or a little more than 8 thousand rubles for 1 year. If saving money is of paramount importance for a citizen, you should compare the costs of 3-year insurance for a particular car, and doubts will disappear by themselves.

The situation is different with a sloppy inexperienced driver. For such persons, non-renewal of the policy entails the risk of large monetary costs in case of an accident. Perhaps it would be imprudent for them to refuse voluntary auto insurance.

Is it possible not to pay insurance for the third year

Approaching the third year of debt service, the borrower again wonders if it is possible not to pay CASCO for a car loan. If the driver is experienced and has many years of accident-free driving experience, the bank can meet halfway. In such a situation, it is possible to reduce the requirements for material security on collateral, especially if the balance of the debt is small. However, this issue remains at the discretion of the bank for the third and subsequent years.

In the third year, costs can be reduced if the driver has confirmed his accuracy in payments and responsibility. The insurer itself can offer a preferential rate or provide a discount to its regular customers, who are highly disciplined while driving. In this case, both the owner of the vehicle and the bank benefit - financial guarantees are preserved, and their costs are reduced.

It is recommended to study the clauses of the banking agreement, which talk about the consequences if you do not renew the CASCO. In addition, even at the stage of agreeing on the conditions, it is recommended to offer the bank another material security that would guarantee full payment of the debt with interest. After all, the organization is only interested in the financial security of the transaction.

Looking at the stream of sparkling brand new foreign cars, I recall the saying of a famous comedian: “Show me your car, and I will tell you how much money you owe the bank!”. Russia is experiencing a real boom in car loans, which has given rise to such a phenomenon as “compulsory” insurance, which is mandatory when issuing a loan. Indeed, most banks, in the loan agreement, prescribe the need for the borrower to insure the car against damage and theft under CASCO, as well as sometimes other risks.

It would seem that insurance is a great way to protect your property and yourself from unpleasant accidents. However, if you buy an insurance policy when applying for a loan, this does not always mean that you provide insurance protection for yourself. Consider all the nuances and pitfalls of insurance when applying for a car loan.

What risks are protected by "insurance policies for the bank"

What are the main reasons forcing the bank to require its client to be sure to insure? This is by no means a concern for the well-being and protection of the borrower. The bank takes care of itself first of all. Each credit institution is faced with such a phenomenon as loan defaults and late payments. In order to protect itself as much as possible, the bank comprehensively uses the possibilities of insurance. A few years ago, during the period of the emergence of consumer lending in Russia, insurance of banks against default on loans was in great demand. However, very soon this type of insurance proved to be highly unprofitable and inappropriate for the UK, forcing them to abandon its use. Having lost such convenient support, banks have come up with some more good options for protecting against defaulted obligations by borrowers. Loan agreements today may provide for compulsory insurance of several types:

Insurance of a car purchased with credit funds under CASCO against the risks of "Theft" and "Damage"

One of the conditions for obtaining a car loan is the transfer of a vehicle purchased with the bank's money as a pledge to it until the full return of funds. In case of non-payment of loan installments, the bank has the right to take the car for sale to pay off the debt. However, an expensive car is not a very reliable guarantee, since it can be stolen or broken in an accident. If such a sad event occurs, the bank will have nothing to compensate for the amount of the loan. The borrower, having lost his car or received a car after a serious accident that requires overhaul, to extinguish the loan will be with great reluctance. That is why the bank insists on compulsory insurance the subject of pledge under full CASCO against the risks of "Damage" and "Theft".

OSAGO insurance

Despite the fact that OSAGO is obligatory for all car owners and is regulated by the state, the creditor bank dictates its conditions here too. Most often, we are talking about specific periods of validity of the policy, which usually must coincide with the date of the CASCO policy and the date of issue of the loan. In addition, the bank prohibits insuring against OSAGO in installments, and making the policy open, providing for an unlimited number of persons admitted to management. Often, the lists of drivers in CASCO and OSAGO policies must completely match.

DOSAGO insurance

Often the bank obliges the borrower to purchase a policy Voluntary insurance motor vehicle liability. It will protect in the event that the sum insured under the OSAGO agreement is not enough to cover the costs after an accident due to the fault of the borrower. As a rule, the bank independently sets the amount for which DOSAGO should be insured.

Accident insurance

Some banks in their forethought go even further. In the event that the loan amount is large enough, and the age of the borrower exceeds 45-50 years, the bank may require him to insure against an accident for the risks of "death", "disability", as well as "permanent" and sometimes "temporary disability". ".

A number of commercial banks provide accident insurance prerequisite for car loans. Insurance should help pay off the loan if an accident occurs to the borrower that jeopardizes their ability to do it themselves. Requirements for an accident insurance contract may be different. Some banks ask the borrower to insure their life and health while the borrower is driving a car purchased on credit. Such insurance is inexpensive and is most often included in a combined voluntary auto insurance contract. However, cases of compulsory accident insurance with 24-hour insurance coverage are not uncommon. The cost of such a policy can reach several tens of thousands of rubles.

A number of commercial banks make accident insurance a prerequisite for issuing a car loan. Insurance should help pay off the loan if an accident occurs to the borrower that jeopardizes their ability to do it themselves.

Requirements for an accident insurance contract may be different. Some banks ask the borrower to insure their life and health while the borrower is driving a car purchased on credit. Such insurance is inexpensive and is most often included in a combined voluntary auto insurance contract. However, cases of compulsory accident insurance with 24-hour insurance coverage are not uncommon. The cost of such a policy can reach several tens of thousands of rubles.

The point is that the rates personal insurance depend on the age, gender and state of health of the insured person. So, for example, a 50-year-old man with a chronic disease can receive a rate of 6-7% of the sum insured for insurance from the National Assembly. Which, in principle, is equivalent to the cost of CASCO. But it is important to remember that the requirement to insure under the National Assembly is illegal if the bank refuses to issue a loan without such a service. The Bank has the right to increase credit rate, for clients who are not insured under the NC (and this increase should not be discriminatory), but does not have the right to refuse to issue a loan due to the lack of insurance against the NC.

Who is covered by collateral insurance?

Having insured under the full program, and having fulfilled all the conditions of the bank, the borrower does not have time to relax. To understand how useful the terms of insurance are for you, carefully study the insurance documents.

The main point that should interest you is the information about the beneficiary specified in the insurance policy and other documents received from the insurer.

Most often, the full legal name of the creditor bank will be indicated here, without any notes. In this case, the insurer must transfer all payments for insured events to the bank. That is, in fact, such an insurance option assumes that at your own expense you insure, first of all, the risks of the bank. And only on the honesty and decency of the bank will depend on what the amount of compensation for an insured event will go to. In this case, the insured has no confidence that the payment will be credited to repay the loan or will be given to him for car repairs. The Bank has the right to use the received payment at its own discretion. Of course, in the vast majority of cases, credit organizations do not use this "loophole", but if the bank that issued you the loan does not inspire confidence, such a "loophole", in the future, can become a problem.

A more reliable option for the borrower is when the insurance contract states that the bank is the beneficiary for the risks of "Theft", "Theft" and "Complete structural loss of the vehicle", and in other cases - the insured. This wording means that all insured events under the "Damage" risk with damages up to 60-85% of the actual cost of the car will be used to restore the collateral to the bus station, or to the insured to restore the collateral.

As it was written above, normal creditor banks, even if the bank is indicated in the agreement as the sole beneficiary, do not take the money for themselves, but give it to car repairs. In practice, this process looks like this: the client applies to the insurer with a statement about insured event. The insurer examines the documents, draws attention to the fact that the beneficiary, the bank, receives a report on the assessment of the cost of restoration repairs. Next, the insurer prepares a letter to the bank with a request to explain in writing to the insurer what to do with the compensation and where to transfer it, since he is the beneficiary under the contract. There are several possible answers from the bank:

• The bank asks the IC to transfer the payment to the client's account to pay off his debt on the loan.
• The bank asks the IC to dispose of the reimbursement at the discretion of the insured. This answer most often comes from the bank if the borrower regularly makes payments on the loan. This option of disposing of the insurance payment for the bank is more profitable, because it will receive a restored collateral and a loyal client, ready for further payment of the loan and interest.

It is also important to pay attention to one more nuance. In insurance policies concluded at the request of the bank, in the section on the beneficiary or in special conditions, an entry must be made that payments are transferred to the bank in part of the outstanding credit debt of the insured. The difference between the payment amount and the debt of the borrower on the loan in this case is paid to the insured. The absence of a record leaves hope only for the conscientiousness and honesty of the bank, which deems it necessary to give the difference to the borrower. Unfortunately, this does not always happen.

Risks of insurance at the request of the creditor bank

In addition to all of the above, a car loan borrower should remember the following:

1. Most of the time, insurance is a must.
   The borrower usually has no choice here whether to insure or not, just as there is no opportunity to save on unnecessary insurance when he is confident in his driving skills. Although, to be more precise, there is always a choice, but those car loan programs that allow the borrower not to be insured usually cost an order of magnitude more than the policy, which automatically makes them unprofitable.
2. The sum insured is determined by the bank.
   Most often, the borrower does not have the right to establish sum insured under insurance contracts on their own and save on this by choosing incomplete property insurance (i.e., for example, specifying the cost of a car as 800,000 rubles, instead of 1,000,000, as the bank wants, will not work). This point is ambiguous, because savings on understating the sum insured will also affect subsequent payments, which will be calculated as the ratio of the sum insured to the insurance value. When car loans, the bank usually requires you to insure the car for real value, and in case of accident insurance, the insurance coverage will be equal to the amount of the loan debt and the annual interest rate added to it.
3. A CASCO insurance policy for credit cars can cost more.
   As a rule, tariff rates for credit car insurance are higher than for vehicles purchased by the insured independently. The fact is that the UK is included in the cost of insurance " bank client» the amount of commission to the bank, brokers and agents, which the borrower will have to pay. Usually, an agency agreement is signed between the bank and the insurance company, in which the bank acts as an agent for attracting customers in insurance company. Often, the agency fee to the lender is 35-40% of the amount you pay for insurance. In addition to official agreements, the commission goes to unofficial payments for the services of credit agents, who unobtrusively recommend a certain company to the borrower. It should be noted that the overstatement of tariff rates for the insurance of "credit" cars is absolutely unlawful and violates the "Law on the Protection of Consumer Rights". The Federal Antimonopoly Service closely monitors the activities of banks and insurance companies in this area. Each case of borrowers' complaints to the FAS is considered and serves as the basis for a gradual change in the current situation for the better. So a few years ago, the Rostov Department of the Federal Antimonopoly Service revealed cases of a difference in tariff rates for the same types of insurance by 30%, which was the result of illegal agreements between banks and insurers. The FAS interfered with the activities of insurance companies and banks and forced them to eliminate the violation that had taken place. Unfortunately, the Russian mentality does not allow the majority of citizens to protest against the sometimes extortionate conditions of credit institutions. However, remember that in this case the law is on your side, but you will need to prove your case with documents.
4. Prohibition of installment insurance.
   The bank may prohibit borrowers from breaking down the annual insurance premium into payments. The credit department will require you to show the original receipt for payment of the full cost of policies for the year. This approach is not always convenient for the insured.
5. Prolongation of insurance contracts is necessary until the full fulfillment of credit obligations.
   Every year, until you fully pay off the car loan with the bank, it will oblige you to insure.
6. The list of insurance companies - partners of the bank can be very limited.
   Having issued a loan, the bank may deprive you of the freedom of choice when looking for the best insurance company. The bank will provide you with a list of insurers accredited to this institution. This list, sometimes consisting of two or three companies, will not reflect your opinion, but the opinion of the bank regarding the best and most convenient insurance conditions. An insurance policy from a “foreign” company will not be accepted from you, forcing you to play it safe or refusing a loan. Forcing certain insurance companies on borrowers is against antitrust laws. FAS controls the terms of cooperation agreements between banks and insurers, and also responds to complaints from borrowers and insurers. Often, the FAS initiates cases against banks for imposing insurance companies. You can protect your rights if you contact the FAS, but you still have to prove your case.

1. Read the insurance contract carefully.
   Only a detailed and detailed study of insurance documentation will allow you to avoid predatory insurance conditions. Ask the UK for a complete package of documents - insurance rules, policy, special conditions, if any. Demand clarification of incomprehensible points from competent employees. Do not sign the contract in a hurry.
2. If you are going to buy a policy at a bank or salon, first find out the cost of insurance yourself.
   Often, in the car dealership where you buy a car, and in the bank where you sign a loan agreement, friendly agents of insurance companies from the bank’s list are “on duty”. Offering you insurance here and now, they will talk about convenience, saving time and the need to be insured before leaving the salon. However, their words are not always true. Usually the price of a policy from an insurer's agent is very high, because it includes his earnings, which he does not want to lose even partially. True, completely opposite cases are also known, when insurance in car dealerships becomes the best option. This situation is possible if the salon has its own insurance department, in which policies are drawn up by full-time employees of the salon. In this case, insurance is an accompanying service when buying a car, organized in order to increase sales of the cars themselves. "Sales" of insurance services in this case are not motivated by agency fees. The salon, in turn, making excellent money on the sale of cars, can afford to completely abandon the insurer's commission in order to attract a buyer. In addition, one of the conditions for a cheap policy purchased in a salon may be receiving insurance payments only through repairs at the service station of the salon itself (an official dealer). For a client who has bought a brand new car, this moment may not be significant, since warranty vehicles are most often repaired in this way. At the same time, the salon gets the opportunity to earn in the long run through payments from the insurance company for repairs, which is why it is so willing to give discounts on insurance. Be that as it may, carefully study all the possible options for buying a policy. Remember that it is possible to issue a policy in advance according to the TCP and the loan agreement, showing the car for inspection a little later. In addition, you can calculate the cost of insurance on the Internet, for example, using the CASCO calculator.
3. Study in detail all the offers of the lending and insurance market.
   Usually each bank has a very small list of accredited insurers with very high rates. However, large ICs cooperate with many banks. In advance, be interested not only in credit conditions, but also in insurance options. Try to read