You surely know that since October 1, you can’t drive away from a showroom or used-car lot without paid motor third-party liability (MTPL) insurance. With some car loans, the vehicle must even be covered by comprehensive (casco) insurance. But do you know the difference between the two? And does the term “minirisk” ring a bell?
Motor third-party liability (MTPL) insurance – this is compulsory insurance required by law, and it covers damage you cause to third parties by operating your vehicle. Every vehicle must have MTPL insurance in place, and it serves as a form of cover for you if you cause a traffic accident.
Comprehensive (casco) insurance – if you cause a traffic accident, MTPL covers only damage suffered by third parties, not damage to your own car. You would have to pay for any repairs out of your own pocket. That’s not the case, however, if you have comprehensive insurance, which is purely voluntary. Casco covers damage caused by accidents, vandalism, theft, or natural events such as floods, hail, or falling trees.
So what about minirisk? You could call it a kind of mini casco, but without a deductible. Policyholders can choose and select the insured risks themselves, so, much like casco, it can include natural disasters, collisions with wildlife, or theft; however, it does not cover car accidents.
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