Deductible from the sum insured. Unconditional deductible in insurance - what is it, why is it needed

Before insuring a car, it is worth familiarizing yourself with the basic terms that are used in this procedure, in particular “franchise”. Insurance agents will definitely tell you about all the benefits of purchasing a policy. But it is not a fact that they will explain the nuances of using CASCO with a franchise. What is it and on what conditions this service is issued, read in more detail in this article.

Definition

Franchise - the amount of money that a person will have to compensate on their own in the event of an insured event. It can be expressed as a percentage or as an absolute value. Its size is agreed in advance and indicated in the policy. The client receives a discount if he agrees to purchase CASCO with a franchise in RESO.

Kinds

Conditional franchise: all payments that exceed its size are fully compensated by the company. But if the cost of restoring the car is insignificant, then the insurer will not receive anything under the policy. Example: the franchise is 10,000 rubles, and the cost of repairs is 8 thousand rubles. In this case, the client will receive nothing. But if the amount of costs is 12 thousand rubles, then the insurance company will compensate the damage in full and will not deduct the cost of the franchise. In practice, this option is not always used, as there are often cases of fraud when the client specifically increases the amount of damage to the deductible level.

Most often, customers prefer to buy a CASCO policy with a franchise. What does it mean? In any insured event, the client will receive compensation minus a predetermined amount (unconditional deductible). Example: a deductible in the amount of 3 thousand rubles is registered in the policy. The cost of restoring the car is 10 thousand rubles. The client will receive only 7 thousand rubles of them. The rest of the amount he will have to compensate himself. Such policies are purchased more often.

Add-ons

Casco insurance with an unconditional franchise is of two types. Part of the costs that the client will recover on their own can be expressed as a specific amount or as a percentage. In the second case, the depreciation of the car is taken into account. The amount of the franchise and the period of use change in direct proportion.

Example: a CASCO insurance deductible is set in the policy in the amount of 15% of the amount of damage. It will take 50 thousand rubles to restore the car. From the company (SC), the client will receive 50 * (1-0.15) = 42.5 thousand rubles. And the rest - 7.5 - will pay on their own.

This is how the franchise works in CASCO.

pros

Depending on the specific situation, driving experience, needs and capabilities of customers, such policies have several advantages.

1. Savings on purchase. A policy with an unconditional deductible is always cheaper than without it. Typically, the reduction is two times the fixed amount. This will be especially noticeable for young drivers (up to two years). For them, multiplying factors are usually set. The discount grows in proportion to a fixed amount. You can calculate the approximate cost of the policy using the online calculator on the website of the insurance company. But, when purchasing such a product, you should be prepared for the fact that in any case, part of the costs will have to be compensated on your own.
2. Saving time. With small scratches on the body or other damage, the client will not have to contact the company at all to receive compensation. Reimbursement of the CASCO franchise in such cases is not provided.
3. According to statistics, cars with a franchise are less involved in accidents. There is a psychological factor. The driver understands that although the car is insured, he will have to compensate part of the costs on his own. It can be said that the franchise makes people drive the vehicle more carefully.

Benefits of an insurance company

Having a franchise saves her from having to run bureaucratic red tape in order to pay a small refund of 2-3 thousand rubles. The mechanism of paperwork is always the same. But the costs of this procedure can greatly exceed the amount of the payment itself. CASCO with a franchise saves office costs. The same benefit applies to the client himself. A person does not have to prepare a bunch of documents each time in order to receive a refund in the UK. It is especially worth considering that the process of paperwork, if the car needs repair, can drag on for several months.

Other options

In addition to the traditional franchises discussed, ICs offer other policies. They are designed for specific customer groups.

Dynamic CASCO deductible, or payment from the second case. The essence of this proposal is that the first damage in a row is compensated by the IC in full. The franchise starts from the second. Sometimes its percentage increases with each client's appeal to the UK. At the same time, it can change

The preferential deductible is used only if the client is not the culprit of the accident. IC is obliged to fully compensate for the damage, even if the second driver fled the scene.

Depending on the time when the insured event occurred, a separate CASCO with a deductible can be used. What does it mean? The policy specifies not only the types of damages, but also the time in which they occurred. If the insured event occurred earlier or later, then the client pays all costs independently.

Example: the driver uses the car only on weekends using public transport. He decided to issue a CASCO with a temporary franchise. If the insured event occurs on a weekday, then the company compensates all costs. But if the driver has an accident on Sunday, the money to restore the car will have to be paid out of his own pocket.

When to buy a policy

• Subject to the availability of free funds to independently cover part of the costs. The discount provided when purchasing a policy will be spent on repairs. But the insured event may not occur. Then the benefit is obvious.
• Confidence in driving skills and the presence of a long accident-free record. If the driver feels like a fish in water while driving, then a CASCO policy with a deductible will help save money. There is always the possibility of an accident. But if a safe driving style has been proven by many years of experience, then a franchise will help save part of the family budget.
• Full CASCO includes "Damage" and "Theft". Suppose a client wants to insure only against the first risk, since he is confident in his skills and will not pay attention to minor scratches on the body. Then it is worth buying a full CASCO with a large deductible (7% or more) that compensates for the “Damage”. "Theft" can not be insured in all companies, more precisely, this service is provided in a package with others. Therefore, in such cases, it is worth purchasing a full policy.

When to Quit a Franchise

According to statistics, this service is unprofitable for customers who often get into an accident. In particular, this applies to inexperienced drivers and those who feel insecure behind the wheel. It is better for such people to purchase a policy at the full price, taking into account all coefficients. Minor accidents with such clients occur several times a month.

Is a franchise profitable?

There are different types of policies on the market that may suit certain clients. It is better for experienced drivers to purchase a full CASCO, which fully compensates for damage caused by third parties. People who have recently obtained rights should pay attention to insurance with a dynamic deductible. A big discount is not provided for them, but the psychological factor will still work. For drivers whose main risk is the possibility of theft or destruction, it is better to purchase CASCO with the maximum deductible amount, for example, the 50/50 program.

Amount ratio

Each IC itself calculates the limits on indemnification. Cases where a deductible of 0 or 100% would be used are extremely rare. But the same rule always applies: the lower the cost of the object, the more costs the client will have to compensate. CASCO with a franchise in RESO is usually provided on the following terms: 0.5-1% of the cost of restoring the vehicle as a result of an accident, illegal actions of other persons, and 5% for the risk of theft is compensated by the client himself. If this cost item is 0%, then for expensive cars the price of the policy can reach 6% of the cost of the vehicle, domestic - 3.96%.

Credit car insurance

It is still worth delving into all the nuances of the policy. Especially if the vehicle is purchased on credit. Banks have their own lists of insurer partners, with which the terms of cooperation are approved in advance. Customers can conclude an agreement with the largest companies on the market by purchasing CASCO from Sberbank. A franchise for such transactions is mandatory. Although the cost of the policy can be reduced without increasing your own risks. For example, if a client wants to insure a car only for the amount of the loan, that is, 70-80% of the car's price. But in this case, the bank will be more protected. The payment will be made in proportion to the size of the loan minus the deductible. In this case, the funds are transferred either to the account of the service station that was engaged in the restoration of the car, or to the bank if the vehicle was stolen or completely destroyed. But if the payment amount does not cover the loan balance, then the client will still have to repay part of the debt from his own pocket.

Miser pays twice

When an agent says: “We are ready to reduce your tariff a little”, the client must understand that in this case he will have to compensate most of the funds on his own. A small savings in the early stages will be expressed in an increase in the rate (amount) of the franchise. Unfortunately, the insurance culture in Russia is underdeveloped. Since people do not fully understand the essence of all concepts and the relationship between payment and deductible, they agree to the agents' offer to purchase a policy with 5-10% of personal expenses.

50 to 50

Only in OSAGO the amount of the deductible is fixed in advance. But in this case, the car is insured against the fact that it can hit someone. Most often, drivers purchase this policy for the period of inspection. Therefore, the key factor for them is the price. The same rule applies here. By lowering the price of the policy, the insurance company increases the deductible. But such insurance can only be suitable for experienced drivers. But even those realize their mistake only when an insured event occurs, when it turns out that the policy covers only 50% of the costs.

Conclusion

In order to insure the car against damage that may be caused to it as a result of the actions of third parties, it is necessary to purchase a CASCO policy with a deductible. What it is? In the event of an accident, the client can apply to the insurance company for compensation for the cost of restoring the vehicle. After registration of all papers, the payment will be made within the sum insured, but minus the deductible. That is, the insured person will still bear part of the losses, but their amount will be prescribed in advance in the contract in the form of a fixed amount or interest.

There is such a thing as a franchise. At present, disputes are actively developing regarding the level of benefit of the proposal. It is important to understand that the degree of profitability is assessed on an individual basis, because the franchise is presented in different ways in the contracts being drawn up.

The essence of the concept of a franchise

A deductible is a part of the damage that will not be paid out upon the occurrence of insured events by a specialized organization. In most cases, when drawing up a contract, the interests of each party are taken into account. Although the franchise benefit is related to the insurance company, the client's interests are still taken into account. For this reason, before the potential occurrence of insured events, the boundary for the subsequent payment of compensation is determined. Such an agreement speeds up and simplifies further cooperation between the company and its client.

What is a franchise? How profitable can this financial product be? The franchise has the following features that are revealed in its analysis:

• a certain part that will not cover the losses of the company's client in the event of an expensive insured event;
• a limit fixed as a percentage of the initial insurance amount;
• part of the amount of a certain amount that is subject to mandatory compensation;
• A franchise is not a prerequisite for cooperation in the insurance industry.

It is best to consider the proposed service with an example. So, according to the insurance contract, 15 thousand rubles are determined. After an accident for a smaller amount, there is no possibility of further compensation for damage. However, if the amount of damage caused is estimated at least 15 thousand rubles, the legal entity pays the entire amount to its client. Despite such an interesting approach to settling financial issues, one can note an advantage for the client: the cost of the purchased policy will be significantly reduced. Any franchise amount that is prescribed in the agreement must comply with legal requirements and an individual agreement.

Types of car insurance franchise

Today, the franchise is divided into several varieties, each of which has certain features, advantages and disadvantages. Without fail, the type of franchise used is entered in the text of the agreement.

1. Conditional. In this case, the insurance company focuses only on the established digital indicators in the agreement. In addition, the reverse situation is allowed: the amount of damage that exceeds the figures specified in the contract is a mandatory requirement for payment of the amount in full.
2. Unconditional. There is a mandatory deduction of the deductible amount, regardless of the amount of damage caused. For the client, the policy is offered in advance at a reduced price, so savings are guaranteed in the absence of traffic accidents.
3. Temporary. The franchise in this case is valid only for a certain period of time, which is indicated in an additional manner. A mandatory orientation to the date of the event and the duration of the franchise is provided.
4. High. Such a franchise is used in most contracts that are drawn up for expensive vehicles. The minimum financial threshold is one hundred thousand dollars. At the very beginning, the insurer reimburses the compensation. Subsequently, the insured pays the deductible amount. Under such a scheme, a high level of protection of the interests of each of the two parties is guaranteed.
5. Dynamic. The amount of the deductible becomes volatile. At the same time, the amount of compensation that is paid to the victim depends on the damage to the person and the car, debt, and the frequency of accidents.
6. Preferential. In this case, the franchise will come into force only under certain circumstances. The contract should clearly state the nuances of resolving financial issues, otherwise there is a serious risk of conflict situations.
7. Regressive. Provides for the payment of insurance compensation without taking into account the deductible. Thus, the injured client receives insurance in full. Subsequently, the policyholder returns a certain amount, which is specified in the contract.
8. Mandatory. The franchise becomes an integral part of new agreements if, under previous agreements, there were serious losses for specialists due to accidents or a major accident. To soften the terms of the extended contract, it is recommended to remember the rules of the road and make every effort to prevent accidents.

The type of franchise must be indicated without fail, since this largely determines how correctly it will be possible to resolve the subtleties of the existing relationship between the insurer and the client of the company.

Legislative regulation of the size of the franchise

The size of the franchise for the subsequent payment is regulated at the legislative level. As a result, the executed agreement acquires legal force and can be successfully used in many insured events. Sizes are regulated not only on an individual basis, but also by federal laws. In this regard, each of the two parties in any case is within certain limits. In most cases, the financial capabilities of the clients of the insurance company are taken into account, since the proposed additional product must be beneficial for each of the two parties.

Knowing what a deductible is when insuring a CASCO car or other policies, you should be puzzled by the amounts. The amount of potential damage is determined on an individual basis, but the starting point is ten thousand rubles.

Each type of car insurance has specific requirements. For example, when it is possible to use no more than two percent of the sum insured.

The maximum compensated sum insured cannot exceed 16,000 rubles. If the established indicator is exceeded, the culprit of the accident must allocate his finances to pay for the repair of the affected car of the second party. Taking into account the individual approach to determining the amount, the potential benefit should be taken into account. However, in order to form a correct opinion, it is recommended to evaluate the franchise in depth.

Benefits of a car franchise

The endless debate about the benefits of a franchise for insurance companies and their customers can still lead to a better understanding of the situation associated with car insurance. Proper execution of the contract guarantees a high level of protection for each of the two parties. Moreover, an equal degree of benefit is provided for those who are interested in the benefits of a car franchise. For an in-depth study of the additional product, it is recommended to carefully study the offer, both from the side of the driver and the insurer.

Positive aspects for the motorist

The main advantage is directly related to the protection of the insured. This is due to the absence of the need to expend effort, time and additional finances to interact with the insurance company in situations where you can handle it yourself. This approach guarantees prompt resolution of minor issues that arise after an accident without serious damage to the vehicle. The client of the insurance company receives an unusual discount. The policy is provided at a reduced cost, as a result of which it is possible to achieve savings.

It is important to consider the risk of a serious car accident. If the amount of damage is less than the established deductible, you will have to give up any benefits. This situation may arise if a large franchise is indicated in the contract being drawn up. If the driver is confident in the minimum risks associated with an accident, only the cost of the insurance policy will have to be paid. In this case, the opportunity to note the benefits associated with financial costs is guaranteed.

The most important detail is the size of the deductible to be established when applying for an OSAGO insurance policy. The amount must correspond to the financial capabilities of the client of the insurer. For this reason, the client is only entitled to give consent if the indicated payment is affordable for him in case of an unexpected traffic accident. At the same time, an important rule is taken into account: an increase in the size of the deductible leads to a decrease in the cost of the insurance policy.

The positive aspects of the franchise for clients of insurance companies are not always noted. The need for a responsible approach before signing the contract is foreseen:

• It is recommended to calculate the time intervals for using the franchise. This aspect is taken into account by a motorist who knows the peculiarities of using his car and the nuances of the financial situation. Solving money issues on your own always takes time. In this regard, it is necessary to calculate the time frame for self-payment of damage to the injured party and the approximate terms for the provision of official assistance from the insurer. Usually issues are resolved online, so the difference does not exceed 5 - 12 hours.
• Now you need to calculate the cost of an hour of time. For example, the monthly income is 60 thousand rubles. This amount is divided by 160 working hours (standard work time per month). Thus, an hour costs 562 rubles.
• It is desirable to take into account the peculiarities of lifestyle. Sometimes people, due to force majeure situations, which include road accidents, have to miss classes in the gym, swimming pool, fitness center. Such circumstances result in excess expense available for prevention. Perhaps it is best to independently resolve the issue with the injured party and quickly find a way out of the conflict situation.
• An understanding of human psychology should be taken into account. Sometimes it takes people a long time to resolve conflict situations. The franchise benefit is noted only after taking into account the chances of successfully resolving the issue on a personal basis without involving insurers, the life situation, and the level of wages.

Too little franchise does not carry any benefits. For example, 100 rubles is an amount that cannot even be considered when drawing up a contract. In this regard, it is recommended to carefully study the cost of various parts for cars and the prices of their replacement, painting. The minimum financial investment is usually a thousand rubles, but this figure is typical only for minor accidents.

Benefits for an insurance company

Car insurance companies always evaluate their losses and profits. No client can fully assess the financial situation of a specialized organization, so the presence or absence of positive aspects cannot be assessed independently.

For example, in case of minor accidents, an insurance company must pay its client 1,000 rubles for a quick and cheap car repair. However, 2,000 rubles will be spent on processing the payment due to the specifics of the transfer of funds, existing commissions and other accounting nuances. For such situations, it will be beneficial for the company to use a franchise and eliminate potential monetary losses.

The deductible provides for the obligatory payment by the insured of all expenses. This standard is accepted for all civilized countries of the world.

Features of the franchise

To successfully resolve the existing issue related to the conduct of insurance payments, you should understand the nuances of registering a franchise. Without fail, all the subtleties of cooperation must be spelled out in the contract. If the contract contains a car franchise, the owner of the car can agree on the terms of the service with specialists. Individually determine the type of franchise, size, terms of payment. The document is drawn up only after the consultation, because the insurer always remains in profit. The client of the company should think about himself in order to guarantee savings in dealing with financial issues in a potential accident.

To apply for a franchise, you must submit the following set of documents:

• original and copy of the civil passport;
• Title issued for a specific vehicle;
• certificate confirming the registration of the vehicle;
• original and copy of driver's license;
• an officially executed application for CASCO or OSAGO with an additional clause about the franchise.

Each client of the insurance company must remember the need to submit the established package of documents. Only after that it becomes possible to obtain an OSAGO or CASCO policy with a franchise at a reduced price.

A properly executed contract determines the situations when the insurer must successfully fulfill its obligations. In other cases, the motorist must independently regulate conflict situations. Understanding the intricacies of cooperation with an insurance company and the possibility of independently resolving existing issues determines the possibility of using a franchise.

How to use a franchise abroad?

Knowing what a franchise is for car insurance abroad, you can compare the features of using an additional product in your homeland and in other countries. A franchise always contributes to increasing the responsibility of the motorist, who must eliminate the risk of any accident. It is determined on the basis of the amount that will be paid by the driver in the event of an accident. The insurance company pays the rest of the compensation.

Registration of a car franchise for trips abroad is not a mandatory requirement, but many motorists still decide on this approach. In fact, there is a significant difference in the available offers. Sometimes a franchise is issued for 350 euros, and in other cases - for 2,000 euros. The average is 800 euros. If desired, you can refuse to use an additional product. It all depends on the level of development of driving skills.

If the franchise is not used, the motorist takes out full insurance. It is assumed that in this situation the company must pay compensation in full after the appraisal activities. Such insurance is always more expensive.

A franchise is a suitable product only for experienced motorists. In this case, the driver saves on obtaining a policy and eliminates the risks of serious conflict situations that have occurred due to the driver's inattention. You need to be prepared for the fact that in case of an accident you still have to spend money, because the franchise provides for the provision of assistance by a specialized company only in case of serious damage. For any minor damage to the affected car in a potential accident, you will have to pay yourself.

It should be remembered: in many situations, the issued insurance policy does not cover headlights, wheels. Most often this is included in an additional fee, as it belongs to the category of options. At the same time, the assessment can be carried out according to a different scheme, so it is recommended to draw up an agreement with a clear prescription of each item in order to prevent disputes.

The franchise can be used when renting a car abroad. If the driver is not sure about the successful trips, Super insurance is allowed. This alternative to a franchise contributes to an additional financial investment when buying a policy and increased protection for future trips abroad.

Abroad, it is possible to return the franchise. In this case, in case of a car accident, funds will be withheld within a certain amount, but subsequently the finances will be returned. Such cases require the precise fulfillment of all formal obligations by the driver.

Features of cooperation are determined on an individual basis in the interaction between the insurance company and the motorist who plans to rent a car for trips abroad. The conditions of the contract being drawn up must correspond to the experience and degree of faith of the motorist in their driving abilities.

When to take out insurance with a franchise?

Before using a franchise when applying for a car insurance policy, you need to know not only the features of the additional product, its benefits, but also the situations when it is best to take out insurance. It is advisable for some drivers to immediately refuse an offer that will not be profitable:

1. The availability of free cash on an ongoing basis is a mandatory aspect when registering a franchise. Only in this case, the driver can successfully negotiate minor repairs within a timeframe that the injured party agrees to. The franchise provides for the readiness of a motorist to independently repair not only his own, but also someone else's vehicle.
2. Minor injuries in accidental accidents occur in half of motorists. Conflict situations appeared at least once during the entire driving experience. Even a minor accident can lead to an increase in the cost of CASCO for the next year, so in some situations it is possible to reduce the cost of the policy during its renewal and eliminate the risk of increasing the coefficient. If the driver is committed to accident-free, it is best to include a franchise in the contract being drawn up.
3. Accident-free driving experience and confidence in driving skills. Motorists with an experience of 15 to 20 years are entitled to use the franchise. This is due to the ability to exclude the undesirable impact of an accident with minor damage to cars on the cost of the policy when it is renewed. Considering the presence of risks that cannot be avoided, the driver can issue OSAGO, CASCO on the most favorable terms and guarantee a high level of protection for himself.
4. Intention to insure the car only under the “Theft” clause. A full insurance policy divides items into two categories: Theft and Damage. The policyholder has the right to insure the car only against theft, if he is confident in his luck and perfect driving skills. In addition, you can use CASCO with a high deductible for the risk of "Damage", which will also be beneficial.

Each motorist must independently assess their attentiveness and the level of development of driving skills. For this reason, you need to decide how profitable a franchise can be when you take out an insurance policy.

When to Quit a Franchise?

The franchise is not recommended for those who are more likely than other motorists to get into car accidents and must regularly contact a specialized company for compensation. Trying to save money in this scenario can lead to multiple expenses for repairing other people's cars. Thus, it is best to refuse a franchise for novice motorists and inattentive, unlucky drivers.

A franchise in car insurance is a specific product that requires a special approach to its assessment. Responsible analysis and understanding of the specifics of cooperation with an insurance company determines the possibility of protecting the car from unwanted risks and the chance for savings by purchasing a policy at a reduced price.

Services related to property insurance of citizens or organizations are becoming more and more popular today, which indicates the formation of a responsible approach of owners to owning various objects of welfare.

Insurance is designed to provide protection and guarantee the safety of property of citizens for a certain fee. At the same time, a fairly convenient mechanism is the use of a franchise when applying for various insurances, which allows reducing the overall costs of the insured and saving the insurer's resources when indemnifying losses.

Insurance of movable and immovable property

The movable and immovable property of citizens and organizations is subject to insurance.

Traditionally, immovable property firmly connected with the land is considered - buildings, structures, houses, apartments, land plots, as well as aircraft, sea vessels and space objects. Everything else can be considered property movable.

It is permissible to issue insurance for the following items of movable property: cars, furniture, household and computer equipment, electronics, clothes and shoes, books, dishes, jewelry, etc. Cannot be accepted for insurance: banknotes, securities, scientific papers, manuscripts , models, media, weapons, antiques (subject to a separate type of insurance), etc.

Legal entities can insure all types of transport, various cargoes, as well as other types of property. For individuals, insurance is available for their own life, health, apartments, houses, garages, vehicles, household and other property.

Insurance may be paid due to the occurrence insurance episode: fire, flood, explosion, damage, illegal actions of third parties - robbery, damage and destruction of property.

It should be noted that Russians are still quite skeptical about the practice of property insurance, considering this procedure expensive and unnecessary. Such an opinion often prevents property owners from objectively assessing the ratio of the costs of obtaining insurance and eliminating the consequences of accidents.

Registration of insurance involves taking into account three main elements: the amount of insurance, insurance premium and deductible. The understanding of the third element must be treated with special attention, since it depends on the deductible in insurance to what extent the insured himself will pay for his losses, as well as the cost of insurance.

A deductible in insurance means that part of the damage that the client compensates at his own expense if an insured event occurs, that is, this is the degree of participation of the insured in the risk.

In this case, the insurer is exempt from paying the amount established by the deductible. This part of the damages must written into the insurance contract either as a fixed amount or as a percentage.

So, for example, if the contract sets the deductible at 5%, then in the event of an insured event estimated at 100,000 rubles, the client will be paid 95,000 rubles by the insurance company, and the client himself will pay 5,000 rubles. This calculation applies to the general case, in practice it all depends on the type of franchise chosen.

The use of a franchise in the insurance business allows you to save money for the insured when issuing a policy. In addition, such a mechanism facilitates interaction with the insurance organization in case of minor damage.

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Types of franchises and their brief characteristics

The insurance contract or rules establish the type and amount of the deductible.

There are several such species depending on the conditions for establishing a franchise:

Advantages and disadvantages

disadvantage deductible in insurance, at first glance, it seems that the client does not pay part of the amount intended for damages. However, this is a rather primitive view of the franchise mechanism, the benefits of which can be very significant.

Franchise beneficial for customers the following reasons:

• saving money due to lower insurance premiums (for example, if insurance is needed only formally, when applying for a mortgage, then due to the establishment of the maximum deductible, you can spend the minimum amount on insurance payments);
• saving time (if the damage from the insured event is minimal, you do not need to spend time interacting with the company, filling out unnecessary paperwork);
• if damage never occurs, there will be no need to use excess funds to pay insurance premiums;
• franchise insurance is beneficial for recovering large losses;
• when registering a franchise, the client is given a discount on the insurance policy, sometimes comparable to the size of the franchise.

Franchise beneficial for insurers, because the:

• allows you to reduce the amount of insurance payments for customers;
• relieves employees from accompanying minor insured events.

Auto insurance franchise

Force majeure situations often occur on the roads. Insurance companies offer to minimize the financial risks associated with the consequences of an accident.

There are two types insurance for car owners:

• OSAGO. It is a mandatory type of civil liability insurance. It is due to him that the losses of third parties are usually covered. However, if the insured is found to be the culprit of the accident, then the guarantees for damages or car repairs will be minimal here;
• CASCO. This is a voluntary type of insurance, issued at will. Can guarantee the maximum degree of protection for motorists. Despite the fact that the CASCO policy is quite expensive, you can find many positive aspects with it. You can save on the cost of the policy through a franchise.

Auto insurance policies cover damages for the following: insured events:

• when the accident happened;
• the car was stolen;
• The car was vandalized.

It should be understood that acquiring a franchise in auto insurance is not beneficial for everyone, but only for car owners with certain conditions:

• the driver assumes self-reimbursement of minor damage;
• a motorist, as a rule, is very careful on the roads;
• the client does not want to bother with the registration of minor accidents.

For car insurance, see the following video story:

CASCO policy in car insurance

Total exists two ways to issue a CASCO policy:

• full version;
• with a franchise.

At the same time, the cost of a full CASCO policy, although it depends on a number of factors, is very high. In this case, the registration of CASCO insurance with a franchise can significantly reduce costs. Its size is determined by the parties and must be prescribed in the contract.

The following registration conditions franchise insurance:

• the deductible is mandatory if the risk of total destruction of the car or its theft is very high;
• the deductible in case of an accident, as a rule, is 10% of the total sum insured;
• the cost of insurance is inversely proportional to the size of the deductible;
• if the client applies for damages more than 1-2 times a year, the franchise will be unprofitable.

In the event of a serious accident, there are two options for compensation for damage: the client is given money for repairs minus the deductible, or he himself pays the deductible amount to the cash desk of the insurer and repairs the car in the service partner of the insurance company.

However, it will be difficult to issue an insurance policy with a franchise if:

• the car is in collateral;
• the driver is new to driving;
• the car often gets into an accident.

How to choose the right franchise

The most popular among motorists in Russia is currently CASCO with an unconditional franchise. For its registration, you only need to decide on a reliable insurer who will accurately make payments. At the same time, it is possible to dwell on other types of franchise, depending on the selection criteria available to the insured.

Immediately, before the procedure for concluding an insurance contract, recommended to check the following information:

• what is an insurance company (time of existence, customer reviews);
• study existing tariffs and the size of the franchise;
• evaluate the market attractiveness of the company and the relevance of tariffs and the type of franchise;
• read the contract carefully;
• attend consultations with insurers.

The nuances of insurance when traveling abroad

Staying abroad requires the tourist to obtain certain insurances. It is necessary to take insurance seriously in various situations while abroad in order to avoid many serious problems. It is well known, for example, that one visit to a hospital in foreign countries can cost a very substantial amount.

Usually tourists traveling abroad conclude the following insurance contracts:

Often, in order to obtain a visa, a citizen draws up a so-called comprehensive travel insurance contract.

The most important thing to pay attention to when applying for any type of insurance abroad is the reputation of a partner of a Russian insurance company in the country where you plan to visit.

In addition, there may also be a deductible in insurance, and if its amount turns out to be more than the insured damage, the tourist will have to pay for medical care or car repairs on their own.

A franchise in insurance services is a convenient and economical option, since it leads to a decrease in the total cost of insurance, increases the level of confidence of the insured in the insurer. It is only required to choose the most suitable type of franchise for yourself, which will allow you to save your property with maximum efficiency.

About the rules of health insurance when traveling abroad, see this video:

Aimed at protecting the property interests of people from certain dangers. Insurance activities include comprehensive insurance protection, consisting of the insurance itself, co-insurance and reinsurance in the broadest sense of the term. An obligatory condition for the functioning of insurance organizations is the licensing of insurance activities. Licenses that give the right to carry out insurance are the guarantor of the solvency of the insurance company at the expense of the necessary insurance reserves formed by it for the implementation of one or another type of insurance for future insurance payments. At present, a mechanism is functioning in Russia that includes licensing of insurance activities, registration of organizations involved in insurance and control over their activities, carried out All this in a complex ensures the protection of the interests of policyholders. Licensing of insurance activities in Russia does not have any restrictions on the duration of its validity, unless it is specifically provided for by Rosstrakhnadzor at the time of issuing a specific license. Both voluntary and compulsory types of insurance are licensed.

Insurance, like many business areas, includes a number of specialized concepts and terms. The insurance activity of insurers and policyholders necessarily includes a franchise, since it goes through each contract and is negotiated in each product from the insurance line.

What is a franchise in insurance?

In French, a franchise is a privilege. A deductible in insurance is a non-reimbursable part of the damage. It is calculated as a percentage in relation to In other words, if an insured event occurs, then, when calculating the insurance indemnity, the deductible amount will be deducted from the total payment. Russians, as a rule, try to refuse the franchise, unlike foreign clients of insurance companies. It seems to us superfluous and unnecessary, but if you think about it, everything is quite different. Franchise in insurance provides an opportunity to save money. A small deductible provides more comprehensive damage coverage, but a high insurance rate; a larger deductible - less complete coverage of damage, but reduces the cost of the insurance policy.

There are two types of insurance franchise: conditional and unconditional.

With a conditional or non-deductible deductible, you will only be reimbursed for damage if it exceeds the amount of the deductible, otherwise, you will not be able to receive payments from the insurance company. For example, albeit somewhat trite, but just for perception, you insured shoes for the amount of 1,000 rubles with a conditional 1% deductible, which will be 100 rubles, and a little later you lost the heel. The amount of the repair will be significantly less than the deductible, so there will be no refund. And in the event that you did not lose the heel, but tore off the sole completely, then the cost of the repair will exceed the deductible amount and the insurance company will fully compensate you for the damage. Since reimbursement is made under certain conditions, the franchise has acquired the name "conditional".

The unconditional or deductible deductible is deducted from the amount of payments for always, without any conditions. Therefore, projecting it onto the previously given example, we see that if the damage is insignificant, there will be no payments from the insurance company, and if the damage is significant, the deductible will always be deducted from the actual amount payable for damage, i.e. in our case - 100 rubles.

If we evaluate the situation objectively, we see that the deductible in insurance is beneficial for us. It is no less beneficial for the insurance organizations themselves, since they also have a real opportunity to save money.