Article
For vehicle owners, insurance plays a significant role in ensuring a safe driving experience. In Turkey, there are two main types of insurance that vehicle owners must have: Mandatory Traffic Insurance and Casco Insurance. These two types of insurance have significant differences in terms of scope and purpose. Traffic insurance, as the name suggests, is mandatory and is designed to cover damages to third parties. On the other hand, casco insurance is optional and covers the driver's own vehicle and material damages.
Many vehicle owners confuse these two types of insurance and are not fully aware of their coverage. Therefore, by examining the differences between traffic and casco insurance in detail, we aim to help vehicle owners make informed decisions.
O1
WHAT IS CASCO INSURANCE? WHAT IS THE DIFFERENCE FROM TRAFFIC INSURANCE?
Traffic insurance is a type of insurance designed to cover the damages to the other party in the event of an accident. These damages may include vehicle damage, bodily injury, and damages to third parties. However, traffic insurance does not cover the damages to the insured's own vehicle.
Casco insurance, on the other hand, has a completely different structure. Casco covers the damages to the insured vehicle. So, unlike traffic insurance, the driver who takes out casco insurance is also protecting their own vehicle.
In summary:
- Traffic insurance: Covers damages to the other party.
- Casco insurance: Covers damages to the insured's own vehicle.
O2
IS TRAFFIC INSURANCE MANDATORY? IS IT NECESSARY TO TAKE OUT CASCO?
Traffic insurance is mandatory for all motor vehicle owners according to the Road Traffic Law. In Turkey, to take a vehicle on the road, traffic insurance must be in place. If a vehicle is caught without traffic insurance, a penalty can be applied, and the vehicle can be banned from traffic.
Casco insurance, on the other hand, is entirely optional. That is, the decision to take out casco insurance is entirely up to the vehicle owner. However, casco insurance offers a significant advantage for drivers who want to protect the material value of their vehicle and be covered against various risks.
In summary:
- Traffic insurance is mandatory, and those who do not have it face penalties.
- Casco insurance is optional, but recommended to protect your vehicle.
O3
WHAT ARE THE COVERAGES OF TRAFFIC INSURANCE AND CASCO INSURANCE?
Traffic insurance offers a coverage defined by the government with a standard set of features. The coverage generally focuses on property damage, health expenses, and damages to third parties. For example, in the event of an accident, traffic insurance covers the damages to the other party's vehicle and health expenses.
Casco insurance, on the other hand, has broader and more flexible coverage options. A casco policy can cover many different situations, such as the vehicle being damaged in a collision, stolen, affected by fire, natural disasters, or terrorist activities. Insurance companies may also offer additional services, such as minor repairs, replacement vehicles, or towing services, providing more comprehensive protection to the policyholder.
In summary:
- Traffic insurance protects third parties and includes government-defined standard coverages.
- Casco insurance protects the insured vehicle and offers optional extended coverages.
O4
HOW ARE THE PRICES OF TRAFFIC INSURANCE AND CASCO INSURANCE DETERMINED?
The prices of traffic insurance vary according to the minimum and maximum price ranges set by the Insurance and Private Pension Regulatory and Supervisory Agency (SEDDK). Insurance companies can set their prices within these boundaries. Factors such as the vehicle type, driver's age, and accident history can affect the price.
In casco insurance, however, pricing is entirely based on the services offered by the insurance company and the characteristics of the vehicle. When determining the price of casco insurance, many factors are considered, including the brand, model, and age of the vehicle, the driver's past accident record, and additional coverages.
In summary:
- The price of traffic insurance changes within the limits set by the government.
- The price of casco insurance depends on the characteristics of the vehicle and the driver.
O5
TRAFFIC INSURANCE AND CASCO INSURANCE CLAIM POLICIES
In traffic insurance, the damages to the other party are covered in the event of an accident, but the insured vehicle's damages are not covered by traffic insurance.
In casco insurance, the damages to the insured vehicle are covered according to the terms of the policy. For example, if your vehicle is damaged in an accident or stolen, the damages can be covered according to your casco insurance coverage. Additionally, some casco policies offer additional benefits such as a replacement vehicle or towing services.
For more information about traffic insurance and casco insurance prices, and to determine the most suitable insurance policy for you, you can contact Fulya Duru Insurance for detailed consultation.
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