Franchise (literally translated from French as “benefit”) is the amount that the insurance company does not pay to the client in the event of an accident. It may be a fixed amount or a few percent of the total amount of damages. Policies with a deductible are sold much cheaper than without it, which is why many drivers prefer this type of insurance. There is an unconditional and conditional franchise, and it is important to know what the difference is between them, and which type will be more profitable. Let's take a closer look at them.

What is an unconditional franchise?

This type of deductible is a fixed amount that the insurance company will not pay if any accident occurs. If the damage is less than the unconditional deductible, the driver receives nothing at all from the insurer; if it is more, he receives the difference between the damage and the deductible amount.

For example, after a collision the car received dents, the damage was estimated at 10,000 rubles. The franchise amount under the agreement is 15,000 rubles, so the company will not pay anything at all. If the accident turned out to be very serious, and the damage, for example, amounted to 40,000 rubles, the company will pay the difference: 40,000 – 15,000 = 25,000 rubles. This is the amount the driver will receive as compensation for damage. Another example: an unconditional deductible for the risk of damage is 20,000 rubles, the damage is estimated at 19,900 - even with such a minimal difference, the driver will not receive compensation from the insurer.

Such a system is primarily beneficial for the insurer, since he will be able not to pay for minor accidents at all, and, if necessary, to compensate for major damage, receive a large discount. Because of this, some companies do not even offer another type of franchise, leaving the client no choice. However, for the insured person, such franchising can also be quite profitable for several reasons:

• The policy will cost significantly less. CASCO for expensive cars it is always very expensive, and a franchise will save you up to 30-40 thousand. It is worth taking into account the peculiarity of the Russian mentality: the driver always hopes that he will not get into an accident, which means it is better to save as much as possible on insurance. In case of serious accidents, it will still be possible to receive fairly large compensation for damages.
• There is no need to contact every little detail. insurance company. The policy is cheaper, and the driver will correct all minor damage to the car in a traffic jam or in the parking lot at his own expense. This will allow mutual agreement drivers do not contact the traffic police, do not collect a lot of documents and carry out examinations.
• There is an opportunity to save time on car repairs. With a full CASCO policy, any accident can lead to the car being sent to a partner service center of the insurance company, and the driver will have to wait for repairs to be completed. Sometimes it is much easier to carry out repairs yourself and not wait for the insurance company to fulfill its obligations.

Thus, an unconditional deductible can be beneficial to both parties, but first of all, it saves the insurance company from unnecessary expenses.

What is a conditional franchise

Conditional deductible is a fixed amount that will not cover damage to the car. That is, minor damage that was assessed less than the deductible amount will not be paid by the insurance company. If the damage has exceeded this level, then the insurer is obliged to pay compensation in full. The deductible amount is not deducted.

Example of calculations: the contract states that the deductible amount will be 7,000 rubles. The car gets into an accident and is damaged for 5000. Since the damage is less than the deductible, the repairs are paid for by the driver himself, and not by the insurance company. Moreover, if the same car gets into a more serious accident, the damage from which is estimated at, for example, 15,000 rubles, the insurance company will fully compensate for the repairs.

Who benefits from this system especially:

1. Experienced drivers. They rarely get into minor accidents; the car may not receive minor damage during the entire insurance period, so there is no point in paying the insurance company for them. A serious accident can happen to anyone, but in this case, major damage will be fully compensated.
2. For those who want to save money. A franchise will help you purchase a policy much cheaper, and minor problems can be resolved at your own expense. For example, if you make repairs in a familiar service center, it will cost much less, and the savings on insurance will completely offset the costs.
3. For those who save time. You won’t have to call traffic police inspectors, waste half a day drawing up protocols for every little thing, and you won’t need to conduct an examination regarding a minor scratch on the bumper. A franchise will allow you to receive full compensation when it is really necessary, without overpaying.

Is it worth taking out insurance without any deductible?

An insurance policy without any deductible is very expensive, so purchasing it will often be unprofitable. For an experienced driver, it most likely will not pay off, and the insurance company will not return the money. Franchising allows you to save up to 30% of the total cost of insurance, and if we are talking about expensive car, the amount is not small at all. In the West, insurance without a franchise is practically never found, since it always stipulates the minimum damage that will not be covered by the company.

The driver has to choose which type of franchise to choose on his own. You need to familiarize yourself with the conditions of several insurance companies in advance and look for reviews about them from car owners who were actually injured in accidents.

It is important for every person to ensure the protection and safety of their property as much as possible and for a long time, and to minimize the risk of damage to it, and in case of accidents, to be able to restore the property at minimal cost. This can be achieved through a procedure such as property insurance. But few people know that the amount of insurance premiums can be reduced by using a deductible. Next, we will consider in more detail the definitions of “policyholder”, “insurance”, “insurer” and “insurance franchise”. What is this in simple words?

Insurance

Insurance is one of the types of economic relations used to protect the property interests of people from various types of financial losses. An insured is a person interested in the safety of his property, who periodically pays certain amounts (insurance premiums) to the insurer - the guarantor of the safety of real estate.

Even if something happens to the property of the insured person, the insurance company will assume the obligation to fully or partially compensate for the damage caused (i.e., make insurance payments) depending on the terms of the agreement and the deductible specified in it.

Franchise

Franchise in insurance - what is it in simple words? This is a kind of benefit (translated from French), which allows you not to compensate for part of the losses incurred. It can be a fixed amount or determined as a percentage of the value of the property. In the event of an accident resulting in damage to real estate, the deductible will be deducted from the total amount of insurance payments.

Many policyholders are distrustful of the deductible and try to avoid it. However, its use leads to significant savings in money. The insurance rate depends on the size of the franchise: the lower it is, the higher the price of the insurance policy (but the damage will be covered more fully) and vice versa.

Depending on the conditions specified in the insurance rules, there are several types of franchises.

Conditional

When using a non-deductible deductible, damage will be compensated only if it exceeds the deductible; otherwise, the insurer will not make payments. Let’s say the property was insured for one hundred thousand rubles, the deductible amount was set at five thousand rubles. If the property was damaged for 3,000 rubles, the insurance company will not pay for repairs, and if the damage caused to the property exceeded five thousand rubles, then the amount of compensation will be paid in full, without deducting a deductible.

Currently, it is rarely used, although it is the most interesting for both collaborating parties. This is due to the fraudulent actions of clients who sought to increase the amount of losses incurred in order to receive full compensation.

Unconditional with fixed size

There is also such a thing as an unconditional deductible in insurance. What is this? The deductible deductible, as the name implies, is always minus the amount of insurance payments in a fixed amount without taking into account any conditions. This type of franchise is the most common.

Let's look at the example above. If the damage caused is less than 5,000 rubles, the insurer will not cover it. If the damage caused to property amounts to, for example, 12 thousand rubles, then compensation will be paid in the amount of seven thousand rubles minus the deductible.

This is the difference between conditional and unconditional franchises. When using a conditional franchise, losses are fully reimbursed. In this case, the payment amount will be exactly 12,000 rubles.

Unconditional as a percentage of loss

An unconditional deductible under an insurance contract can also be established in proportion to the share of loss. Let's say it is 6% of the amount of damage. Then, if a loss of 12,000 rubles is incurred, the insurance company will pay 11,280 rubles = (12,000 - (12,000 x 6%)) as compensation.

For the insurer, using a fixed franchise is more profitable when small amounts damage, and the franchise interest rate allows you to save on payments in case of major material losses of the insured person. The vast majority of companies enter into contracts using an unconditional franchise, most often a fixed one, used to reduce the number of applications.

Temporary

The use of a temporary deductible in the agreement indicates that insurance compensation will be paid only if losses are received after a certain period of time. If the specified period has not yet expired, the policyholder will not receive compensation.

The time deductible in insurance is calculated in time units. If its type is not specified in the contract, by default it is conditional, that is, losses after a certain period are subject to compensation in full. As a result of her specific features This deductible is most often used for business interruption insurance, where every minute of downtime leads to a loss.

The most widespread temporary deductible in an insurance contract is among new companies, thanks to which they provide themselves with a deferment in payments. During this period, they manage to accumulate initial capital, from which insurance payments are subsequently made.

Dynamic

The dynamic franchise under the terms of the contract changes upon the occurrence of each specific case. Different companies define it differently. Most often, when using such a deductible, the occurrence of the first insured event is paid in full, and each subsequent one reduces the amount of payment by a certain amount.

For example, a dynamic deductible may look like this: 1 case of damage to property - no deductible; Case 2 - insurance deductible amount is 5%; Case 3 - the payment amount is reduced by 20%, etc. It turns out that the more often clients find themselves in risky situations, the more of the damage they have to pay at their own expense. Using a dynamic franchise is the most the best option in CASCO insurance.

Preferential

This term is used when describing in the agreement those cases when the insurance deductible does not apply. Different companies interpret it differently.

Most often, the concept of a preferential deductible is found in car insurance. Provided that the accident is not the fault of the policyholder, but because of the driver of another car, the deductible is not used. In practice, reimbursement of the deductible can also be obtained using the unconditional type of deductible from the insurer of the person responsible for the accident, but this will require additional collection of a complete set of documents.

Registration of a “preferential” franchise reduces the amount of insurance premiums less than the use of other varieties, including unconditional.

High and regressive franchises

When drawing up large property insurance contracts, they sometimes include conditions for a high deductible, the amount of which starts from one hundred thousand dollars. If property is damaged, the insurance company pays for the entire loss until the property is completely restored. Only after this does the person insured within the property give the insurance company compensation for the established deductible amount. A high deductible in a property insurance contract makes it possible to most fully protect the interests of the insured in court.

The principle of operation of a regressive franchise is the same as that of a high franchise, with the only exception: the amounts are significantly less. The insurance company fully compensates for the damage received, and the policyholder returns the stipulated amount of the deductible.

Mandatory

This type of deductible is most common in CASCO insurance. This is a requirement of the insurance company, which states that extension of the insurance period is possible only with the mandatory registration of a deductible. A mandatory insurance deductible is specified in the agreement in cases where the client has suffered a certain amount of losses under a previous contract. If the policyholder refuses to sign a new document, his further cooperation with the insurance company is terminated. The amount of the mandatory deductible is calculated based on the amount of previous losses.

Car insurance

Let's look at what a deductible is in CASCO and OSAGO insurance.

Most often, the franchise is used in voluntary CASCO car insurance and is approved by mutual agreement of the parties. The client's benefit will depend on his driving style and experience. The more careful the driver, the more he can save when drawing up an insurance contract.

If the client can pay for minor repairs on his own, rarely gets into accidents and wants to protect the car only from theft, it makes sense for him to issue a maximum deductible with minimal insurance premiums. However, if you get into a serious accident, half the cost of repairs will fall heavily on the shoulders of the policyholder.

If the driver often gets into accidents, the insurance company may oblige him to issue an unconditional deductible when extending the contract period or refuse to extend it further. Therefore, it is not profitable for clients to frequently get into accidents.

In CASCO insurance, the presence of even a 1% deductible in the clauses of the agreement can significantly reduce the price of the insurance policy. The franchise amount is set by mutual agreement. The amount of the deductible is determined by the state for compulsory motor liability insurance.

Deductible reimbursement

Since insurance companies only compensate for losses minus the deductible specified in the contract, some companies offer insurance to reimburse the deductible. Most often, this practice is found in car rental companies, which reduce the driver's liability to zero and fully reimburse him for the cost of the deductible.

In addition to full deductible compensation, this insurance policy covers damage to the wheels and windows of the car. Such insurance can be obtained in advance, even six months before renting a car, and it is valid all over the world.

pros

At first glance, it seems that an insurance deductible is beneficial only for insurers, and policyholders are left with nothing when applying for it. However, this is not quite true. Insured persons also receive their benefits.

1. Availability of a discount when paying the insurance premium. If insurance is just a formality, and the possibility of incurring serious losses tends to zero, then the most optimal option would be to establish maximum size franchise with a simultaneous reduction in contribution.
2. If the property receives minor damage, the client pays for repairs himself. As a result, time is freed up that the policyholder would have to spend filling out large quantity paper documents and a visit to the insurance company.
3. Due to the fact that the damage is not fully compensated, the client strives to handle his property more carefully and avoid risk whenever possible, which also reduces the likelihood of an insured event occurring.

Summarizing

In general, registration of a franchise leads to significant savings in money and time, which is an important factor for serious and successful people, appreciating every moment of their lives. If a deductible is used, property insurance will mutually benefit certain prerogatives for both the insurance companies and the persons with the property insured under the contract.

This is a way to save money on comprehensive insurance, which works very simply: if an insured event occurs, the insurance company will deduct the amount of deductible you have chosen from the payment amount. It turns out that if in an insured event the damage amounts to, for example, 100,000 rubles, then the insurance company will deduct the deductible from this amount and pay the rest as compensation. So, with a franchise of 10,000 rubles, the amount of payment in this case will be 90,000 rubles.

Franchise size and benefits.

You can choose an acceptable franchise from 10,000 to 75,000 rubles. The size of the deductible only affects the cost of your insurance: the higher the deductible, the cheaper the insurance. If you choose the maximum deductible, then comprehensive insurance will cost more than twice as much. So, a franchise is a good way to save money!

For example, comprehensive insurance for a Mitsubishi Outlander ASX (2015, worth 1,030,620 rubles) with a driver aged 36 years and 7 years of driving experience costs 77,386 rubles, and with a maximum deductible it is 56% cheaper - 34,298 rubles.

For careful drivers

According to statistics, 75% of our clients have no more than one insured event per year. Because extensive experience or simply careful driving reduces the likelihood of an accident to almost a minimum. For such drivers, comprehensive insurance is needed, rather, as a last resort. And if you are confident in yourself, then the standard franchise (“Unconditional”) is for you - the best option savings on insurance.

For example, comprehensive insurance for a Nissan Juke (2014, worth 780,800 rubles) with a driver aged 38 years and 15 years of experience costs 40,645 rubles, and with a deductible of 20,000 - only 22,391 rubles.

Confident drivers

If you want to save on the cost of comprehensive insurance and are confident in your experience and driving skills, but are not confident in the actions of other drivers, we can recommend the culprit franchise. This deductible only applies if the incident was your fault or the culprit has not been identified. In other cases, the deductible does not apply.

For example, if the other party is at fault in the accident, your car will be completely repaired and you will not have to pay the deductible amount. And if the car is damaged by unknown persons, for example, while parked, then the repairs will also be carried out in full, but you will need to pay the deductible amount.

For inexperienced drivers

If you are not yet confident in your experience and you need insurance, but also want to save money, then we can offer an option where we fully reimburse your first insured event, and the second and subsequent ones minus the deductible. The “From the Second Case” franchise will provide you with the necessary protection and help you save on insurance.

How to buy insurance with a deductible?

When calculating insurance, simply select one of the deductible options that suit you:

• standard franchise (“unconditional”);
• culprit's deductible;
• deductible from the second case (offered only for insurance in our offices, dealer showrooms or agents).

and determine the size acceptable to you from 10,000 to 75,000 rubles.

Note! You cannot buy insurance with a deductible for a car purchased on credit or for which the loan is still being paid off.

What to do in case of an insured event?

Insurance with a deductible is no different from regular insurance. Therefore, you simply contact us with an insurance claim. After making a decision on compensation for damage, we will repair your car, and you will pay the deductible amount to our cash desk or the technical center cash desk.

Many personal vehicle owners dream of saving money on insurance. In order for the dream to become a reality, a CASCO insurance deductible is suitable.

Let's try to find out what it is and how to use it correctly. Let’s find out what a comprehensive insurance franchise is in simple words, what are its advantages and main disadvantages.

Important! A deductible is one of the types of a car insurance contract, which implies an exemption from payments of a fixed amount to the insurance company.

The amount of the amount is agreed upon by both parties at the time of drawing up and signing the contact. The car owner takes on some part of the loss, while receiving a very significant discount in the process of applying for such an insurance policy:

Important! Compensating with your own funds for small losses incurred as a result of an accident (in case of insured events) makes it possible to significantly save time, there is no need to go to insurance companies, and you will also save on the cost of car insurance.

It can be set as a percentage of the price of the insured car, or a certain amount can be assigned, depending on the wishes of the policyholder.

There is no such concept in Russian legislation, but when applying to the courts, you can count on a positive outcome of the case.

Advice! When concluding a contract, carefully read all the insurance rules, only then certify the document personal signature.

What are the benefits of such policies for ordinary vehicle owners:

What are the features of a car insurance franchise?

If we analyze what a comprehensive insurance deductible means for an insurer, then first of all it is a way not to waste time on periodic contacts to the insurance company in order to compensate for minor accident losses. This type of policy involves shifting part of the obligations to the consumer of the services himself; the reward is a discount on the CASCO policy.

Any proceedings for compensation of losses for an insurance company - material costs of at least 2 thousand rubles. When paying for broken glass(in the amount of 1000-1500 rubles) insurance companies create red tape, losing at least 3000 rubles, addressing their own expenses to the policyholder. According to reviews, comprehensive insurance with a franchise allows you to avoid similar situations.

Neither the insurer nor the policyholder receives benefits from the registration of minor damage, therefore CASCO with a deductible is used all over the world, it is considered a great option saving money and time for clients and insurers.

The main point in the process of drawing up an insurance contract using such a benefit is to determine the size of the deductible that is beneficial to the owner of the vehicle (so that the owner of the car can independently resolve issues related to minor car repairs in the event of an accident, without contacting the insurance company).

Types of franchise

There are two types:

• unconditional deductible for comprehensive insurance;
• conditional.

There are also cumulative and temporary deductibles. It can be expressed as a certain amount, percentage of loss, part of the cost of the insured vehicle:

Does it make sense to take out an insurance policy with a deductible?

Before signing a franchise insurance policy, think about the following:

• assess your financial capabilities if necessary to restore the car after an insured event;
• Will you be able to pay for car repairs if it is damaged during an accident?

Advantages of CASCO insurance

It is beneficial to open a franchise with CASCO insurance in the following situations:

• with extensive driving experience;
• if you wish, pay for minor damage to the car without “paperwork”;
• when looking for low cost car insurance.

In addition to compulsory insurance, drivers enter into an agreement such as CASCO. It is this agreement that will be able to cover all costs associated with restoration repairs that arise as a result of the damage. In this article we will understand what a deductible in CASCO insurance is, why it is necessary and which one is better to choose.

Before you buy deductible protection, it is important to understand what it is. In simple words- this is a specific limit of money, expressed in percentage or monetary terms, within which the owner of the vehicle himself compensates for the costs of restoration repairs.

The percentage or exact limit is always discussed before signing the contract, by agreement of the parties. It is also important to understand that at any time during the policy period, you can change the conditions, namely, reduce or increase the deductible limit. All changes are made directly at the central office of the financial organization, by drawing up an additional agreement.

Kinds

When drawing up a contract, you should understand that there are payment restrictions different types. Often, in practice, insurers offer to choose from two options that are approved internal rules. To make the right choice, you should clearly understand how the funds will be received.

Unconditional

It should be noted right away that this is the most common option offered by auto insurance managers. Its operating principle is very simple. All the car owner needs to do is choose the amount that he will always pay himself to pay for the repair work.

As for the contract, insurers offer to fix the deductible:

• in fixed monetary terms
• as a percentage of the actual price of the vehicle

For example, the policyholder indicated a limit on his own compensation within 15 thousand rubles. If the occurrence of an insured event causes damage to:

• 15,000 rubles or less - the client receives nothing and makes repairs using his savings
• 20,000 rubles - receives only 5,000, and adds 15,000 himself

It turns out that with an unconditional franchise, the client will always have to pay extra, within the selected limit. As for the percentage, insurance managers often offer to choose the size own payment within the range from 1 to 10% of the market value of the car, which is determined at the time of insurance. If the car owner chooses the condition - repair at the station, then he will first need to pay part of the money to the station and only after receiving full payment will he provide the car for repair work.

Conditional

The conditional franchise, like the unconditional franchise, is set at the client’s discretion in monetary or percentage terms. However, the principle of its operation is slightly different, since the company will pay the entire amount of damage only if the amount of damage exceeds the agreed limit.

In simple words, the client chose a limit of 10,000 rubles. If the amount of damage is 10,000 rubles or less, then the car owner will have to repair the car themselves. In the event that a loss is caused in the amount of 10,000 or more, the insurer transfers the funds in full.

Temporary

In this case, the name speaks for itself - it is a restriction that is set for a specific period or period of time. When insuring a car under the CASCO program, the client can choose that the deductible will be valid only during the day. For example, a motorist can choose for the restriction to apply only from 24:00 to 06:00 in the morning. In this case, the company offers to choose how the payment will be made:

• minus the agreed amount
• no money paid

In the second case, the voluntary protection form will cost much less.

Dynamic

As for the dynamic deductible, this is a limitation that applies depending on the number of insurance payments and is also set as a percentage.

For example, financial institutions often offer the following payment option:

• for the first loss – payment in full
• for the second loss, a portion is paid, for example, 50-70%
• for the third loss, an even smaller percentage is paid or no payment occurs

The terms of a dynamic franchise are written down in the form at the time of conclusion. It is important to understand that this is an excellent condition for experienced drivers who are not to blame for the accident themselves, but may receive a loss due to the fault of third parties.

High

Such a restriction is applied in practice extremely rarely and under agreements with legal entities, for which the insured amount is several million rubles. As for the size of the franchise, based on the name, it is high and amounts to at least 100,000 rubles. When an insured event occurs, the insurer makes a payment in full and then demands reimbursement of the agreed limit amount within a certain period of time.

Preferential

An attractive type of franchise, which is often offered to corporate clients. In an agreement with such a condition, payment may be provided if:

• The insured is not considered to be at fault for the accident
• the amount of damage does not exceed 100,000 rubles
• no more than two vehicles are involved in the accident

Each financial institution is ready to offer its own terms of payment, which are clearly stated in the voluntary insurance policy.

Regressive

This type of restriction is similar to high, but differs in the limit. As a rule, according to the recourse limit, the franchise amount does not exceed 30,000 rubles. The principle of operation is that the damage insurer pays the funds in full, after which it issues an invoice to the policyholder for the amount of the deductible. The client is obliged to pay the limit fixed under the policy to the insurer within a certain period. In this case, the recourse condition applies to each insured event.

How to calculate

As mentioned above, the deductible can be calculated either in percentage terms or set as a fixed amount. In the first case, a percentage is charged from the market (insurance) price. For example, a car costs 1 million rubles, and the limit is set at 10%. In this case insurance organization will hold or focus on a limit of 100,000 rubles.

When is it better to choose insurance with a deductible?

When purchasing a voluntary policy, it is important to understand that the deductible is only beneficial in some cases. Let's consider in detail when you should choose voluntary protection with such a mysterious condition as a deductible:

When is it better to refuse such conditions?

It is not always worth choosing this condition under CASCO insurance in order to save money. There are cases when insurers recommend waiving the franchise and purchasing a contract with a full package of risks.

It's worth refusing:

In conclusion, it can be noted that a franchise is a condition under a voluntary agreement, which is not suitable for all drivers. Before applying for protection, you must carefully study all the nuances of the insurance payment and, if necessary, seek advice from an experienced expert.

Advantages and disadvantages

This attractive payout limitation has both its advantages and some disadvantages. Let's look at each in detail.

Video: What is a CASCO franchise?

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