Comprehensive (kasko) insurance is voluntary cover that pays for damage to your own vehicle, while compulsory motor liability insurance only pays for damage you cause to others. Kasko from insurers in Montenegro covers road accidents, parking damage, vandalism, fire, natural disasters, theft and broken glass, and for an extra premium roadside assistance, tyres and a replacement car. One insurer's general terms require you to report damage within three days at the latest and theft to the police and the insurer within 24 hours, while the no-claims bonus goes up to 50% of the premium. Payouts are reduced by the agreed deductible, and the insurer does not pay when the driver was under the influence of alcohol and this caused the accident, when the driver had no licence or when an unlocked car was stolen. Terms differ between insurers, so read them before you sign.
This guide explains what kasko covers, how the car's value and the deductible are set, how the bonus and malus work, how you report a claim and when the insurer does not pay.
What does kasko cover?
- Basic kasko covers damage to or destruction of the car in a road accident, from a falling or striking object, while parked, from vandalism, fire, natural disasters, snow falling from a roof, hitting an animal on the road and theft.
- Partial kasko usually covers only broken and damaged glass.
- As add-ons you can buy roadside assistance, tyre cover, accident cover for passengers, legal protection, replacement car costs and GAP cover for cars on lease or loan.
- Cover applies in Montenegro, or in Montenegro and Europe including Turkey, depending on the contract.
- If your lease or loan agreement requires kasko, you usually pay the premium and the lessor is the policy beneficiary.
How are the car's value and the deductible set?
- The car is insured at the new-car value from the insurer's price list or at the invoice value of a newly bought car.
- In a claim, the car's actual value is found by reducing that value for depreciation by age, use and condition, using the catalogue of the National Bureau of Insurers of Montenegro.
- The insurer pays no more than the car's actual value on the day the claim is settled.
- The deductible, or your share of the loss, is the amount you bear yourself in each claim. If the damage is smaller than the deductible, nothing is paid, and larger damage is reduced by the deductible.
- A higher deductible means a lower premium, so compare both when choosing an offer.
How do the bonus and malus work?
| Claim-free years | Premium discount |
| one year | 10% |
| two years | 20% |
| three years | 30% |
| four or more years | 50% |
- The table shows the bonus in Grawe's general terms for up to five vehicles, and other insurers may use different rates.
- Claims from road accidents, falling or striking objects, demonstrations and theft affect the bonus, while claims from other risks, such as broken glass, do not.
- With two or more claims in a year you lose the whole bonus.
- The malus is an extra deductible: none for the first claim, 10% of the loss for the second, 20% for the third and 30% for the fourth and each further claim.
- When you sell the car, the bonus does not pass to the buyer.
How do you report a claim?
- Take steps at once to stop the damage growing and notify the insurer without delay, and within three days at the latest.
- Report theft, robbery and seizure of the car to the police and the insurer immediately, and within 24 hours of finding out at the latest.
- For a road accident, theft, fire or parking damage, report it to the police and hand in the police report or official note. No police report is needed for broken glass, hail, storms, floods or earthquakes.
- Do not change the state of the damaged car until the insurer inspects it, except for safety or to prevent further damage.
- For theft, the risk counts as having occurred if the car has not been found within 30 days of reporting it to the police.
When does the insurer not pay?
- When the driver was under the influence of alcohol or drugs, or refused testing, unless alcohol did not cause the accident.
- When the driver did not hold a valid driving licence.
- When an unlocked car was stolen or the keys were left inside.
- For racing, deliberate damage, war and unrest, and for driving through a flooded road when the driver knew of the danger.
- If you do not report a change of owner, plates or other key details, the insurer can refuse or reduce the payout.
If you disagree with the insurer's decision, first send it a written complaint. If you are not satisfied with the reply or get none in time, you can complain within one year to the Insurance Supervision Agency, which gives its final reply within 30 days of gathering all the facts.
Compulsory insurance and the green card are covered in our guide to car insurance, and kasko as a condition of financing in our guide to leasing. Checks before buying are in our guide to buying a used car, and registration and roadworthiness tests in our guide to vehicle registration.
Frequently asked questions
Is kasko insurance compulsory in Montenegro? No, kasko is voluntary unless your lease or loan agreement requires it.
How much does kasko insurance cost? The premium depends on the car's value and age, the risks chosen, the deductible and the bonus, so ask several insurers from the Insurance Supervision Agency's list for quotes.
How quickly must I report a kasko claim? Under Grawe's general terms, without delay and within three days at the latest, and theft to the police and the insurer within 24 hours.
What is the deductible in kasko? The amount you bear yourself in each claim. Damage below the deductible is not paid, and larger damage is reduced by that amount.
Does kasko pay if I drove under the influence of alcohol? No, unless the accident was not caused by the alcohol.
Who do I complain to if the insurer rejects my claim? First to the insurer with a written complaint, then to the Insurance Supervision Agency within one year of the insurer's last decision.
Sources
Risks, the car's value, the deductible, bonus, malus, claim deadlines and exclusions are described in Grawe's general terms for combined motor vehicle insurance (auto kasko) OU-AK 01/2024 and UNIQA's key information document on kasko insurance, and complaints in the Insurance Supervision Agency's brochure on complaints. Licensed insurers are listed in the Agency's register of insurance companies. The information was checked on 28 September 2026. Fijaka is a classifieds platform; this text is not insurance advice.