MTPL vs CASCO: What's the Difference and Why You Need Both

Many drivers assume one policy is enough. In practice, MTPL and CASCO solve different problems: one protects you from liability toward other road users, the other covers risks to your own car. MTPL is compulsory by law, CASCO is your voluntary choice. Here's how they differ in practice, how they work together after an accident, and when having only one policy leaves you exposed exactly where you need cover most.

Two policies, two different roles

MTPL is a legal duty toward other road users: without it, driving in Moldova is not allowed. CASCO is voluntary protection for your own property: you choose which risks to cover and how.

What MTPL is and what it covers

MTPL is compulsory motor third-party liability insurance, governed by Law no. 106/2022. The policy does not repair your own car — it compensates the damage you cause to third parties in an accident you are responsible for.

The policy covers:

• bodily injury or death, including moral damages;
• repair costs for the other party's vehicle;
• property damage caused by damaging or destroying someone else's belongings;
• the injured party's legal costs, if the ruling favours them;
• the cost of a single tow of the damaged vehicle from the accident scene.

The insurer's liability is capped by law:

• Property damage arising from a single accident — up to EUR 100,000;
• Bodily injury or death of one person — up to EUR 100,000;
• Bodily injury or death of multiple persons — up to EUR 500,000;
• Moral damages caused to one person — up to EUR 5,000;
• Moral damages caused to multiple persons — up to EUR 10,000.

If the actual damage exceeds these limits, the injured party can claim the difference directly from the at-fault driver through court — MTPL does not cover that portion.

The premium is not the same for everyone: insurers apply a bonus-malus system, which lowers the premium for drivers with no claims history and raises it for those who have had incidents.

What CASCO is and what it protects

CASCO is voluntary insurance that protects your own vehicle in an accident, theft, vandalism or other risks listed in the contract. Unlike MTPL, you choose the set of risks — and, as a result, the price of the policy.

CASCO typically covers:

• collisions, impacts, rollovers, skids, scratches, objects falling on the car;
• fire and explosion;
• natural events — floods, storms, hail, lightning, snow/ice, avalanches;
• unlawful acts by third parties, vandalism, damage caused by animals;
• theft or attempted theft of the car or its parts;
• robbery.

Within the insured sum, the policy can also cover towing to a repair shop and costs to limit the damage. The price of CASCO depends on the car's market value and age, the chosen set of risks, driving experience and the deductible — the higher the deductible, the lower the regular payment.

MTPL or CASCO — the short comparison

1. Is the insurance mandatory?

MTPL insurance is mandatory by law, whereas CASCO is voluntary insurance.

2. Who receives the compensation?

Under MTPL compensation is paid to the injured third parties, whereas under CASCO compensation is paid to you as the vehicle owner.

3. Is your vehicle covered if you are at fault?

MTPL does not cover damage to your own vehicle if you are at fault, whereas CASCO may cover such damage in accordance with the terms and conditions of the policy.

4. Are theft, hail and vandalism covered?

MTPL does not cover theft, hail or vandalism, whereas CASCO covers these risks.

5. What is the territorial scope of the insurance?

MTPL is valid within the territory of the Republic of Moldova, whereas CASCO is valid within the territory specified in the policy, with the possibility of extending the coverage abroad.

Why these policies complement each other

You cause an accident. MTPL covers the other driver's injuries and car, within the limits above. Repairing your own car is covered only if you have CASCO.

Your car is stolen or vandalised. MTPL does not apply here — there is no injured third party. CASCO with theft cover compensates exactly this case.

Hail or flooding damages your car. Natural events are excluded from MTPL but are usually part of CASCO cover, if that risk is included in your package.

The at-fault driver flees the scene or cannot be identified. Their MTPL is, by definition, unreachable — there is no one to claim from. If you have CASCO, your own car's repair is covered by your policy regardless of whether the culprit is ever found.

What happens after an accident: who pays whom

If the accident is your fault and only the other driver's car is damaged, their repair is paid by your MTPL insurer. If your car is damaged too, its repair is covered by your own CASCO policy (if you have one) — regardless of fault: CASCO works on a "your accident, your insurer" basis, not on a fault basis.

It's also worth knowing about direct settlement — a service MTPL insurers are allowed, but not required, to offer their clients (art. 31 of Law no. 106/2022). It applies when only two vehicles were involved, both registered in Moldova, both with valid MTPL, and only property was damaged — no injuries. In that case, the injured party whose insurer offers this service can claim directly from their own insurer instead of the at-fault driver's insurer. This speeds up the process, but the right to claim directly from the at-fault driver's insurer remains available either way.

Frequently asked questions

1. Can I have only MTPL, without CASCO?

Yes, MTPL is the legal minimum. CASCO stays optional, but without it, repairing your own car after an at-fault accident, a theft or a natural event is entirely out of pocket.

2. Can I lower the regular CASCO payment without dropping the policy?

Yes — one option is a higher deductible: you cover a larger share of the damage yourself, and the regular payment for the policy goes down.

3. How much time do I have to notify the insurer about an accident?

For MTPL — no later than 48 hours after the accident (art. 18 of Law no. 106/2022). CASCO deadlines differ: theft must be reported within 24 hours, other damage claims within 7 calendar days of receiving the documents.

4. What if the at-fault driver flees the scene?

You cannot claim against their MTPL until they are identified. If you have CASCO, your car's repair is covered by your own policy regardless of the outcome of the search.

What to remember

• MTPL is compulsory and pays third parties, within the legal limits; CASCO is voluntary and protects your own car.
• Theft, natural events and a driver who fled the scene are covered only by CASCO.
• Notice deadlines: MTPL — 48 hours, CASCO theft — 24 hours, other CASCO claims — 7 calendar days.
• Direct settlement (art. 31) speeds up payment for simple two-car accidents between Moldovan-registered vehicles, but it's the insurer's right, not an obligation.

Buy MTPL online or request a CASCO quote — the General Asigurări team will help you choose the right coverage for your car.