Motor Third Party Liability vs. Casco Insurance: Key Differences and How to Choose the Right One

Motor Third Party Liability insurance is mandatory and covers damages to third parties. Casco insurance is optional and protects your vehicle against various risks.

However, many drivers are not fully aware of what each of these types of insurance actually covers and when they need them.

In this article, we will explore the main differences between Motor Third Party Liability and Casco insurance to help you make an informed decision.

Why is it important to understand the differences?

With the wide variety of insurance products available, it can often be difficult to determine which ones truly meet our needs. In Bulgaria, motor insurance undeniably holds a leading position. On one hand, the law requires every car owner to have a valid Motor Third Party Liability policy, while on the other, our car is an essential part of daily life and we want to protect it as much as possible.

Still, many people are not fully aware of what each type of insurance actually covers. There are frequent cases where an accident occurs due to our own fault, we have Motor Third Party Liability insurance, yet we do not receive compensation for the damages to our own vehicle. This is exactly where the key difference between Motor Third Party Liability and Casco insurance lies — the former covers damages we cause to others, while the latter protects our own car.

What is Motor Third Party Liability insurance?

Motor Third Party Liability insurance is mandatory by law for every vehicle owner whose vehicle is registered and operated within the territory of Bulgaria.

What does Motor Third Party Liability insurance cover?

Motor Third Party Liability insurance covers your responsibility as a driver or vehicle owner in case you cause damage to a third party while driving or parking. In such situations, the insurer compensates the affected party, so you don’t have to cover the costs out of your own pocket.

What does Motor Third Party Liability insurance NOT cover?

The main thing this insurance does not cover is damage to your own vehicle if the accident is your fault, whether it occurs while driving or parking. In addition, it does not provide protection in cases of vehicle theft or damage caused by natural disasters.

Why is it important not to forget to purchase or renew your Motor Third Party Liability insurance?

In Bulgaria, driving without Motor Third Party Liability insurance is illegal and subject to serious penalties. Currently, if you are found driving without insurance, fines for individuals start from €205 (400 BGN), and for companies from €1,000 (2,000 BGN). In addition, the vehicle is taken out of circulation and its registration plates are removed. To restore the right to drive the vehicle, you must pay the fine, purchase a Motor Third Party Liability policy, and go through the traffic police (KAT) to reinstate the registration. All of this can lead to significant financial strain, as well as loss of time and unnecessary stress.

For the convenience of its customers, Euroins sends reminder SMS messages for expiring policies or upcoming payments. Additionally, on the Euroins website www.euroins.bg, you can check whether your policy is valid, pay your installment, and even purchase or renew your Motor Third Party Liability insurance in just a few clicks. All documents are sent to your email, and a courier delivers the policy, along with the sticker and Green Card, to an address specified by you—entirely at the insurer’s expense.

What is Casco insurance?

If you want to protect your vehicle against a wide range of unexpected risks and incidents, Casco insurance is the solution. It is entirely optional and, depending on your needs, you can expand the basic coverage with additional options.

What does Casco insurance cover?

Comprehensive Casco coverage typically includes the following risks:

• Damage from road traffic accidents, even if the driver is at fault
• Natural disasters such as hail, flooding, storms, etc.
• Theft or robbery of the entire vehicle
• Vandalism and malicious actions by third parties
• Parking damages
• Fire and explosion

Euroins Insurance Company also offers additional coverage options for its clients, such as:

• Assistance – roadside assistance and related services both in Bulgaria and abroad
• Replacement vehicle – a temporary car while your vehicle is being repaired

What does Casco insurance usually NOT cover?

• Damages caused while driving under the influence of alcohol or drugs
• Damage resulting from wear and tear or mechanical failure
• Damages intentionally caused by the insured person

Comparative table: Motor Third Party Liability vs. Casco Insurance

Can I have only one of the two insurance types?

Motor Third Party Liability insurance is not a choice but a legal requirement for every driver. It is designed to protect third parties involved in road accidents and to encourage responsible and safe driving. In this regard, the bonus-malus system introduced in Bulgaria applies, where careful drivers pay lower premiums, while those who cause damage pay higher ones.

On the other hand, Casco insurance is entirely optional and provides protection for your own vehicle, significantly reducing the risk of serious financial losses.