Havarijní pojištění (car insurance for damage to your own car) is voluntary insurance for your own car. It is similar to KASKO in Ukraine. Do not confuse it with povinné ručení (mandatory liability insurance): these are two different products with different purposes.
The difference in one sentence
- Povinné ručení (mandatory liability insurance) — is mandatory. It covers damage you cause to other people. You cannot drive on the road without it.
- Havarijní pojištění (car insurance for damage to your own car) — is voluntary. It is for your own car. No one forces you to buy it.
What this means in practice
The minimum required by law is povinné ručení (mandatory liability insurance): typically 1,700–5,000 CZK per year. The average in the Czech Republic is 4,612 CZK. Havarijní pojištění (car insurance for damage to your own car) is your decision on top of this minimum.