KASKO insurance compensates losses to the vehicle owner regardless of who caused the damage. It also pays compensation if the vehicle is stolen or damaged under unclear circumstances.
Accidents on the road happen every day and cannot be predicted. Entrusting the reimbursement of unexpected expenses to an insurer by purchasing KASKO insurance is a way to plan your company’s fleet expenses.
KASKO insurance can be arranged for passenger cars, trucks, buses, and trailers.
The typical duration of a KASKO policy is one year.
Please note — KASKO insurance is mandatory when purchasing a car on a lease!
Insurers often include specific restrictions and requirements in the insurance terms that the client must observe, such as:
Failure to comply with the policy requirements may result in reduced or denied compensation by the insurer.
Insurance terms include exclusions — risks that are not covered, as well as cases where compensation may be reduced or denied:
It is very important for the client to familiarize themselves with these exclusions! The most common cases where the insurer may refuse or reduce the payable compensation include:
If an accident occurs, you must notify the insurer immediately as soon as possible and act in accordance with the terms of the contract. In any case, you can ask the insurer how to proceed further. The policy may require the police to be called to the accident scene, although there may be situations where the parties can settle the matter mutually without police involvement.
The damaged vehicle must be presented to the insurer before starting any repair work. In the event of theft, the client must immediately report it to the police, submit a written claim to the insurer, and hand over the vehicle registration documents, all sets of keys, and alarm remotes.
KASKO insurance compensates based on the indemnity principle, meaning the compensation paid cannot exceed the actual loss. For damages, the insurer will evaluate the repair estimate prepared by the service center, and in case of theft, assess the vehicle’s value on the date of the insured event.
Note that if compensation is received in cash, the amount will be less than the repair estimate because the reimbursed sum excludes value-added tax (VAT), as the client (an individual) is not a VAT payer. If repairing the damage is economically unjustifiable (costs exceed a certain percentage of the vehicle’s value), the insurer will pay compensation as for a total loss.
Before concluding the contract, the client should find out how quickly and conveniently insurance claims can be filed, and whether they have the right to choose between cash compensation or direct reimbursement of repair costs.
The insured amount specified in the policy is the value for which the vehicle is insured: for a new car — the dealer’s listed sale price; for a used car — the market value chosen by the client. Clients should know that the insured amount is the maximum payable sum on the contract date, but it must be taken into account that the vehicle depreciates daily.
The insurer will compensate expenses to repair the vehicle to the same condition as before the insured event. In cases of theft or total loss, the maximum compensation payable will be the market value of the vehicle on the day the insured risk occurred, except when a new car is insured at new value.
Some insurers do not specify the insured amount in the policy because the compensable value is always determined after the insured event occurs.
Each insurer calculates the policy price according to its own methodology, taking into account various factors, such as:
A deductible is the portion, expressed either as a fixed amount or a percentage of the insured sum, that the insurer deducts from the calculated payable compensation. Generally, the higher the deductible, the lower the policy price. Different deductibles may apply to various risks included in the policy; for example, 10% for theft and 100 EUR for damages. Clients should pay attention to whether the deductible for damages changes depending on the number of claims filed.
The coverage area of a KASKO policy depends on the insurer’s offer and the client’s preferences and needs. KASKO insurance can cover risks occurring only within Latvia, the Baltic States, European countries, or both Europe and CIS countries.
Please note that KASKO insurance will only be valid if the policyholder timely notifies the insurer of any changes related to the risks included in the insurance policy.
OCTA is the mandatory civil liability insurance for owners of land vehicles. It is compulsory for all types of vehicles participating in road traffic in Latvia.
When purchasing an OCTA policy, the person insures not their vehicle, but their liability as the owner for possible damages caused by their vehicle in a road traffic accident (RTA) to other people’s property (including vehicles), health, and also for non-material damage to the person.
DO NOT CONFUSE WITH KASKO! KASKO is voluntary land vehicle insurance that covers the policyholder’s losses in case of vehicle damage, robbery, or theft.
If a road traffic accident (RTA) has occurred in Latvia, the following are not compensated:
The liability limit is the maximum payable amount for damages in a single insurance event. The amount of loss covered by the insurer on behalf of the vehicle owner is:
If a road traffic accident (RTA) occurs in Latvia, a claim for property damage must be filed within 1 year from the date of the accident, while claims for personal injury must be filed within 3 years from the date of the accident. If the RTA occurs outside Latvia, the types, amounts, and deadlines for compensation are determined by the legislation of the respective country.
When calculating the OCTA insurance premium, various criteria are taken into account, such as:
The premium is reduced by 40% for persons with disabilities in groups I and II, as well as for group III disabled persons if their mobility is limited (a relevant certificate from the State Medical Commission is required). The premium is reduced by 30% for owners of tractors and trailers — farmers, fishermen, field workers, and agricultural entrepreneurs (precise criteria are specified in the law).
If only two vehicles are involved in a road traffic accident (RTA), and both drivers can agree on the circumstances of the accident, no persons are injured, no damage is caused to third-party property, and the vehicles have no damage preventing or prohibiting them from being driven, then both drivers may fill out a joint accident statement.
In any other situation, the drivers must report the accident to the Traffic Police. If unsure whether police involvement is necessary, drivers can clarify this by contacting their insurer.
The right to claim compensation from the OCTA policy of the person responsible for the road traffic accident (RTA) is:
In the event of an accident, the injured party must file a claim with the insurer of the vehicle that caused the accident.
Compensation for material damages is paid based on the indemnity principle, meaning the insurance payout must not exceed the actual losses incurred. This means the insurer will evaluate the repair estimate prepared by the service center, and in the event of a total loss, will assess the vehicle’s value on the date of the insured event. If the injured party prefers to receive compensation for vehicle damage in cash rather than as a service, the insurer or LTAB will pay 70% of the loss amount calculated, excluding VAT.
Compensation for non-material damages is calculated according to the Cabinet of Ministers Regulations on the amount and calculation procedure of insurance compensation for non-material damages caused to a person.
Standard Contract – a contract mandatory for vehicles registered in the Republic of Latvia. The standard contract is valid in European Economic Area (EEA) countries, as well as Switzerland, Serbia, and Andorra. The insurance period can be 1, 3, 6, 9, or 12 months.
Green Card – a contract required for vehicles registered in the Republic of Latvia to travel in countries that are part of the Green Card system but are not EEA countries.
Border Insurance Contract – required for vehicles entering an EEA country but registered in a country that is neither part of the EEA nor the Green Card system.
The contract terminates automatically when the vehicle changes ownership, or when a transit number plate or a certificate of vehicle deregistration is issued. In the case of leasing, the contract remains valid if the lessee becomes the owner of the vehicle or the vehicle owner becomes its holder upon a change of lessee.
When submitting a request to the insurer, the contract can be terminated early only in cases where:
Property insurance protects your property against losses that may result from external factors such as fire, theft, water leakage, natural disasters, and other causes.
Insurers often offer to include additional risks in the policy—for example, specialist calls and assistance at home in case of unforeseen incidents; rental coverage for alternative living spaces during repairs after an accident in the apartment; compensation for damages caused in common areas. It is also possible to include coverage for movable property taken outside the home—for instance, the policy may specify that 3–5% of the insured sum’s value can be located outside the home, such as a bicycle or tablet.
The insured sum is determined by the client. It represents the value of the property and the insured belongings. If needed, the client can request specialist assistance to determine the property’s value and the required insured sum, as well as to calculate losses and necessary expenses for property restoration after an accident. Usually, separate insured sums are set for the property itself and the insured belongings.
Each insurer calculates the policy price according to its own methodology, taking into account various factors:
In property insurance, compensation is paid based on the indemnity principle, meaning the payable insurance compensation must not exceed the actual losses incurred. The insurer will cover expenses to restore or rebuild the damaged or destroyed property; carry out repairs on the damaged property; and replace damaged belongings with analogous or equivalent items.
Insurance contract terms often include specific safety requirements. The property must be built according to the approved plan, with no undocumented deviations. Utilities must be replaced in a timely manner, doors should always be locked, keys securely stored, windows closed, electrical devices turned off, snow removed from the roof, and stoves not left unattended, among other conditions.
The greatest risk threatening properties and the main reason people in Latvia insure their real estate is fire, followed by theft. Fires are often caused by uncleaned, improperly constructed, or damaged heating equipment or chimneys. Heating devices and equipment should be inspected and cleaned twice a year, and chimneys once every 1–2 years (depending on the material).
One of the most common mistakes people make in Latvia when purchasing property insurance is insuring for too low an amount. For example, if the value of an apartment or house is €60,000, but the person insures it for only €20,000, that is three times less (a 3:1 ratio). In the event of a claim, the insurer will pay compensation proportionally to the ratio 3:1; for instance, if the damages are €12,000, the insurer will pay only €4,000.
It is important to read the terms and evaluate the risks. Some insurers offer policies covering a broader range of risks, while others have narrower coverage. Also, pay attention to the deductible, which may vary for each risk.
It is crucial to inquire even about wind speed — for example, from what speed the insurer defines wind as a storm. Strong winds can break windows or tear off parts of the roof. For instance, if the insurer’s terms define a storm as starting from 21 m/s, but on that day the nearest meteorological station recorded a wind speed of only 17 m/s, then the roof was likely poorly installed, and the claimant may not be entitled to compensation, or it may be reduced.
Insurers often include specific limitations and requirements in the insurance terms that clients must follow. If the conditions specified in the policy are not met, the insurer may reduce or refuse to pay the compensation!
Insurance terms include exclusions — risks that are not covered, as well as cases where compensation may be reduced or denied. Most often, the insurer will not cover losses arising from:
A deductible is the portion expressed as a monetary amount or percentage of the insured sum that the insurer deducts from the calculated payable compensation. Essentially, the higher the deductible, the lower the policy price. Different deductibles may be set for each risk included in the policy — for example, 10% for theft, €150 for glass damage. Clients should pay attention to whether the deductible for damages changes depending on the number of claims made.
Travel insurance is a type of coverage that protects against unexpected expenses during a trip caused by various unforeseen complications — such as changes in travel plans, accidents or illnesses and related medical costs, lost luggage, and more. Travel insurance does not cover medical expenses that are known or planned in advance.
The travel insurance policy may include the following coverage programs:
Other risks may also be included according to the terms and conditions of each insurer.
Travel insurance is valid for the period specified in the policy and only while abroad. Therefore, it does not cover medical expenses incurred in Latvia, which may arise after an accident abroad. It should be noted that travel insurance covers only emergency medical expenses (including outpatient and inpatient treatment) when failure to provide such care could endanger the client’s life.
Exclusions for which expenses are not reimbursed are specified in the policy. These exclusions may vary among insurers, but most commonly, expenses are not reimbursed for:
The European Health Insurance Card (EHIC) provides Latvian residents with access to paid emergency and necessary medical care in EU countries, European Economic Area (EEA) member states, and Switzerland, by paying the patient contribution required in the respective country. The EHIC is valid only in healthcare institutions that provide state-guaranteed medical services.
Travel insurance, on the other hand, offers coverage for medical assistance in cases of sudden illness or accidents when the required care exceeds what the local healthcare system guarantees and what the EHIC covers (e.g., patient co-payments, repatriation). Therefore, the EHIC and travel insurance policies complement each other.
The EHIC can be obtained free of charge from the National Health Service. More detailed information is available on the NHS website.
The policy price is calculated based on the insurance risks you select, their limits, and the duration of the contract. It is also convenient to calculate the price of travel insurance policies online.
Before traveling, it is important to learn about the current political, military, and epidemiological situation in the destination country, as well as other factors affecting safety during your trip. More information can be found on the website of the Ministry of Foreign Affairs of Latvia, under the “Consular Information” section, subsection “Travel Safely.”
If possible, we recommend postponing travel to countries where a state of emergency or martial law has been declared.
It is convenient if the travel insurance policy is purchased together with the travel package from a tour operator; however, such policies usually include standard coverage only. Therefore, it is important to carefully review the policy terms and assess whether the coverage is sufficient
If insurance is included with a bank credit card, it is advisable to contact the insurer or the bank before traveling to clarify key questions: whether the travel insurance is valid only if the trip was purchased using the respective bank card or also in other cases; and what risks the policy covers, especially if the trip involves physical activities.
Insurance does not cover accidents that have already occurred — coverage is valid only if the policy has been purchased and arranged in a timely manner before the trip for the entire travel period.
Standard policies typically do not cover physical activities such as mountain climbing, skiing, kite surfing, diving, motorcycling, and other activities often enjoyed by sporty travelers abroad. These activities need to be insured separately. It is also important to clarify exactly what the insurer covers; for example, in mountain accidents, first aid may be covered but rescue transportation may not, meaning you might have to pay for these costs yourself.
Travel insurance should always be carried along with other documents, not left in a hotel safe or a suitcase side pocket. People who have experienced accidents abroad report that the first question upon regaining consciousness is often: “Do you have an insurance policy?”
According to the Civil Law, any person who, through their action or inaction, causes damage to third parties—that is, other persons—is obligated to compensate for those damages. Liability insurance (Civil Liability Insurance, CLI) is designed for situations where a person unintentionally causes harm to another person’s health, property, or the environment, and is consequently responsible for covering those damages. CLI insurance compensates for the losses caused by the responsible party.
Each insurer offers different general civil liability insurance products, including more or fewer of the above-listed risks in a personal insurance policy.
The most common practice is to include civil liability insurance within a property insurance policy. However, it is important to note that in such cases, the coverage may only apply to liability as the owner of the house or apartment. This means the policy will cover damages caused in connection with the use of the property at that address, but will not cover losses the client causes elsewhere or in another capacity.
The insurance sum in civil liability insurance represents the liability limit. The total liability limit stated in the policy is the maximum aggregate amount the insurer will pay to compensate for losses incurred during the entire term of the insurance contract as a result of claims made, regardless of the number of insured persons, submitted claims, or claimants.
Each insurer calculates the policy price according to their own methodology. The price depends on a variety of factors affecting the risks, such as the chosen liability limit, included coverage options, and the selected territory.
The insurer compensates losses based on the principle of indemnity, categorizing them by types of damage. The paid insurance compensation cannot exceed the actual losses incurred in the insured event, nor the liability limits specified in the policy for a single claim and in total.
In cases of material damage, compensation is paid for losses incurred by the third party (to their property) or by the insured person themselves (such as legal and litigation costs), corresponding to the actual amount of direct financial loss proven by documentation.
The scope of compensable damages will be specified in the terms and conditions of each insurer.