Regardless of geographic proximity, the requirements to CASCO insurance of cars differ among the inhabitants of the Baltic States. The popularity of insurance without deductible is still high with the inhabitants of Latvia, largely contributed to by the high number of car thefts, while the number of car thefts in Estonia and Lithuania is low, therefore customers accept larger deductible to cut down the policy price, according to data summary of BTA Baltic Insurance Company (hereinafter – BTA).
For a number of years, the quantity of stolen cars in Latvia is measured in hundreds, moreover, the interest of thieves particularly grew with respect to more recent and more expensive vehicles. For the major part, thieves have targeted vehicles equipped by Keyless system without any additional protective measures. It prompts car owners to choose a CASCO insurance, which would compensate car loss expenses to a possibly larger extent.
“Being pragmatic, Latvian people primarily focus on insurances premium – the amount of money to be paid for purchasing a CASCO policy. Next criteria of priority is the size of deductible for damages and theft. Large part of car owners find it important that they would not have to cover the deductible from their own funds, therefore they choose policies of appropriate cover. Although, taking into account the changes in premiums, there are increasingly more customers who calculate the difference between premium and deductible, and opt for a cheaper policy with deductible,” says BTA Baltic Insurance Risks Underwriting Department Director Ivo Danče.
In Estonia, where car thefts are rare and the problems more often encountered by drivers are stolen parts, such as mirrors, owners more willingly accept larger deductible in the case of car theft. The average rate of deductible is 15%.
Owners of new and little used cars can feel relatively safe in Lithuania. According to BTA data, as well as the official statistics, criminals mainly hijack older cars, which then are disassembled for spare parts. The overall number of thefts is small, therefore car owners are not afraid to include deductible of 10% in their policies. Possibly lower insurance premium is what Lithuanians primarily are looking for.
BTA Baltic Insurance Company is a major insurance company in the Baltic States, offering the broadest range of non-life insurance services in Latvia, Lithuania and Estonia. The largest shareholder of BTA is Vienna Insurance Group AG, one of the leading insurers in Europe with 190 years of experience in the insurance field. More than 50 companies in 25 countries constitute the group, which employs 24,000 employees. Vienna Insurance Group AG is a clear leader in its core markets in Europe maintaining high rating of financial stability – Standard & Poor’s A+ (stable outlook), with a listing on the Vienna and the Prague Stock Exchange.
Marketing and Public Relations Department Director
BTA Baltic Insurance Company AAS