The OSAGO policy does not always “save” the culprit of an accident from expenses. Mandatory insurance covers no more than 100 thousand hryvnias, while repairing a luxury foreign car can cost a fortune. The only way to protect oneself from large expenses is to arrange additional auto liability insurance to expand the limit of responsibility.
Experts from VUSO insurance company explained how DSAGO differs from OSAGO and what advantages this policy provides to the insured.
Voluntary car insurance
The letter “D” in the abbreviation DSAGO (DGO) stands for “voluntary”: the policy is issued at the initiative of the insured. In turn, OSAGO is mandatory insurance, without which only persons with first group disabilities, combatants, and Chernobyl accident liquidators can drive.
Both policies “activate” when the driver of the vehicle causes damage in an accident to property and/or people by their fault. In the event of an accident, the insurance company of the culprit compensates the damage to third parties within the established limit.
Increased liability limit
Mandatory auto liability covers material damage within 100 thousand hryvnias and harm to life or health within 200 thousand hryvnias. When the amount of damage exceeds the limit, the policyholder pays the difference out of pocket. Voluntary car insurance allows increasing insurance payments 2–5 times, so in most cases, the insured does not incur any expenses.
The liability limit under DGO is not fixed, the insurance amount under OSAGO can be increased by 50, even by 500 thousand hryvnias.
No attachment to a single insurance company
You can arrange DGO and OSAGO with either the same insurer or different ones. The first option is preferable in terms of convenience: you will not have to report an accident to two companies. Moreover, when arranging two policies simultaneously, many insurance companies provide discounts for comprehensive insurance. The second option should be considered only if your insurer’s voluntary car insurance conditions are much less favorable than its competitor’s.
Calculation of policy cost
The DSAGO rate is set by the insurer and averages 0.25–0.5% of the established limit size. In turn, mandatory car insurance uses a fixed rate of 180 hryvnias, which is multiplied by several adjustment coefficients (registration city, driving experience, etc.). When calculating OSAGO, the insurer is guided by legal requirements, while the DGO price calculation is based on its own criteria.