Liability vs CASCO
Car value × risk → what's economically justified
Parameters
Liability covers YOUR responsibility to others (limits ~160k property/320k health in Ukraine) — it does NOT repair your car. CASCO covers your car (theft, accidents, natural events). Economically CASCO is justified when car value × annual risk > premium — for cars >300k and daily driving almost always. Partial CASCO (theft+total only) is a compromise at ~2–3% of value.
Comparison
- Expected loss/yr
- 24 000 грн
- CASCO, % of value
- 4.5%
- Expected CASCO benefit
- +6 000 грн