COMPREHENSIVE INSURANCE AND COMPRESSIVE INSURANCE

COMPREHENSIVE CAR INSURANCE AND COMPULSORY FINANCIAL LIABILITY INSURANCE (CASCO)

COMPREHENSIVE CAR INSURANCE

Comprehensive car insurance is an optional type of insurance. This type of insurance provides compensation to the policyholder in case of adverse events that occur while the vehicle is in motion or stationary, and are beyond the policyholder's control, such as theft, fire, or damage in a traffic accident. Factors considered when determining the cost of comprehensive car insurance include the vehicle's make and model, current mileage, the policyholder's location, the driver's record, and whether or not they have received any traffic violations.

Comprehensive car insurance is not only intended to cover damages resulting from traffic accidents; it also covers theft, fire, or any other damage to the vehicle that occurs without the owner's knowledge or consent. In addition to these events, claims made by individuals outside the scope of their insurance policy are also considered as part of the coverage. For example, damage to the vehicle due to a volcanic eruption in a volcanic area, damage from an earthquake, damage during a strike or civil unrest, or a decrease in the vehicle's value due to damage in an accident.

ZMSS (Compulsory Financial Liability Insurance)

Compulsory Motor Vehicle Liability Insurance (ZMSS), also known as traffic insurance, is mandatory for all vehicle owners who intend to drive on the road. This insurance covers material and bodily harm that may occur to the other party in the event of an accident. Furthermore, this insurance is regulated by the Highway Traffic Law No. 2918. The coverages for compulsory traffic insurance are determined by the Undersecretariat of the Treasury. These coverages are the same across all insurance companies. Accordingly, these coverages include: damages resulting from injury, death, or damage to the other vehicle in a traffic accident.

DIFFERENCES BETWEEN COMPREHENSIVE CAR INSURANCE AND MANUAL TRAFFIC INSURANCE

• While comprehensive car insurance is optional, mandatory compulsory traffic insurance is not. Failure to obtain compulsory traffic insurance results in penalties.
• Comprehensive car insurance covers damage to the vehicle owner's own vehicle in a traffic accident, while mandatory traffic insurance covers damage to the other party in a traffic accident.
• Comprehensive car insurance covers the damages guaranteed by the policy, i.e., the damages covered by the policy. Traffic insurance, on the other hand, protects the liabilities of the other vehicle owner in the event of a traffic accident.
• There is no time limit for comprehensive car insurance, but if your mandatory vehicle insurance has expired, you need to re-insure your vehicle.
• In comprehensive car insurance, the coverages specified in the policy protect both the insured person and the other party involved in the accident. However, compulsory traffic insurance only comes into effect in the event of an accident.
• As mentioned in the previous point, the coverage in comprehensive car insurance can vary depending on the insurance company. However, in mandatory traffic insurance, the coverage does not differ in the same way as in comprehensive car insurance. Here, the state itself regulates, determines, and sets limits on the coverage. In cases of fatal or injury-causing accidents, the limits may differ depending on the situation. If the determined limits are exceeded, the vehicle owner is obligated to pay the excess amount.
• In comprehensive car insurance, the insurance premium usually varies depending on the types of damage specified by the driver in their policy. However, the important thing is for the driver to choose the insurance policy that best suits their needs. In compulsory traffic insurance, the state determines the insurance premium itself, although the state may also apply a free tariff system. Therefore, there is a variety of options depending on the insurance company.

And finally, regarding the last difference, comprehensive car insurance (kasko) is financially more valuable than compulsory traffic insurance (mortgage insurance). In other words, compulsory traffic insurance is more affordable than comprehensive car insurance. The reason compulsory traffic insurance is more affordable than comprehensive insurance is that the risk ratio is much lower in comprehensive insurance. Furthermore, comprehensive insurance covers damages caused to the vehicle by third parties without the owner's knowledge. For example, a parked car being scratched by someone else can be given as an example