Franchise in insurance in simple words. Types of franchise in insurance, its features and advantages How to open an office of an insurance company under a franchise

What is a deductible in insurance: 7 types of deductibles + features in applying for Casco insurance with a deductible + recommendations.

People try to protect their lives as thoroughly as possible, to protect their own interests and property. Insurance is one of these methods of protection, which helps compensate for damage in the event of an insured event. Today there are many companies that provide such services.

Each separately concluded agreement between the policyholder and the insurance organization has its own nuances and features. For example, in a car insurance contract it is very often used. But at the same time, few clients understand what we are talking about.

Let's look at it in more detail, what is a deductible in insurance, and what are its main features.

What is a franchise?

In simple terms, insurance franchise- this is a pre-agreed amount of money that is subtracted from the total amount of damage caused to property.

If we define a franchise in more official language, we get:

In this case, it would be logical to ask the question:

“Why is it necessary to include a deductible in the contract if subsequently the insurance company may not pay the full cost of the damage to the property?”

Indeed, many disputes arise around this between supporters and opponents of such a condition in the contract. However, the deductible allows you to significantly reduce rates when purchasing insurance. This is the main argument in favor.

What is a deductible for CASCO insurance?

The inclusion of a deductible in a CASCO policy implies a certain amount of money that the insurance company may not pay in the event of damage to the car. The established franchise will have to be paid by the vehicle owner himself, and the rest by the insurer.

Be extremely careful before signing an agreement. Review all the terms and conditions of the policy carefully and ask if anything is unclear.

Insurance agents have a habit of not mentioning the deductible. Such caution will help you avoid many problems and unclear situations in the future. The size of the franchise must be determined by the owner of the car.

The main advantage of having such a condition in the contract is that you have a chance to save a lot when concluding a contract.

7 types of franchise in insurance

Its conditions will depend on the features of the insurance franchise. In total, 7 varieties can be distinguished.

No. 1. Conditional.

If the loss from damage caused to property is less than the established amount, then he releases himself from fulfilling the obligation to pay money. If the damage exceeds the deductible, the insurer is obliged to fully reimburse the entire amount.

The signed Casco policy established a deductible of 15,000 rubles. If the damage caused to the car after an accident is less or equal to the cost, then the owner is obliged to pay for the repairs himself. But if the damage to the vehicle exceeds 15,000 rubles, then the company assumes all financial obligations.

A conditional deductible allows you to save a lot on applying for a Casco policy and is suitable for those drivers who rarely get into accidents.

No. 2. Unconditional deductible in insurance.

This type of franchise is most in demand among drivers.

Example:

Let's take the same amount of money (15,000). Let's say an accident occurs. As in the case of the first option, the insurance company will not make payments if the damage does not exceed 15 thousand rubles. Even when the amount is, for example, 30,000 rubles, the full cost will not be paid, but only the difference (30 – 15 = 15 thousand rubles)

This type of franchise in a Casco policy attracts customers with expensive cars. It allows you not only to save money on drawing up a contract, but also time spent in the investigation of minor accidents.

No. 3. Temporary.

The name implies that the duration of the franchise has its own time limits. For example, payments to an insurance company can be made, in the event of a traffic accident, only during a certain period of time, a day.

No. 4. Dynamic.

The deductible amount may vary. For example, for careful drivers who do not get into an accident, the insurer may change the terms of insurance in favor of the car owner. Or vice versa.

No. 5. High.

It is used very rarely, and only if the insurance amount is more than 2-3 million rubles.

No. 6. Preferential.

The decision on full payment of money (without deductions) under the CASCO policy is applied, taking into account certain circumstances.

No. 7. Regressive.

The insurance company fully compensates for the damage to the car, provided that the client subsequently pays the previously agreed amount.

Which type of franchise should you choose?

To determine which type is most beneficial, you need to honestly evaluate your driving abilities. If you consider yourself a confident driver, then the unconditional view with dynamic changes is best for you.

The advantages of this choice are as follows:

The company provides certain discounts for insurance.
The cost of a CASCO policy can gradually decrease from year to year by 5-15%, provided that you do not get into an accident.
Reducing the franchise amount.

The disadvantages include the following features:

Relatively minor vehicle breakdowns will take money out of your pocket.
The discount may be lost if you need compensation for car repairs after an accident.

For owners of expensive cars, a tall look is better. Especially if you work on a truck. It will be much more profitable to quickly pay for repairs at the expense of the insurance company in case of an accident, and then pay the company. This way you won't waste valuable time.

The option of obtaining a temporary license is suitable for those drivers who are confident that on certain days the chances of getting into an accident are minimal. Some, for example, use a vehicle only on weekends. These are the conditions that can be specified in the CASCO car insurance agreement.

Insurance on preferential terms is most suitable for people who have only recently received their license. The clauses in the contract will be drawn up taking this factor into account.

Keep in mind that CASCO insurance conditions are different everywhere, so it is better to compare several agreements from different companies.

What affects the cost of the policy and the size of the deductible?

Each insurance agreement has its own individual characteristics. To understand what a deductible is for CASCO insurance, you should take into account many different factors. The cost of the vehicle, the market price of parts, and maintenance difficulties are taken into account.

The cost of concluding a car insurance contract will decrease relative to the increase in the deductible.

Other points are also taken into account:

car parking and storage place;
additional equipment of the car (alarm system, satellite navigation, etc.);
the number of road accidents recently;
how many people have the right to drive this car;
age and experience of the driver.

It is the last factor from the list that has a special impact on the final cost of insurance. The younger the owner, the higher the price.

The same direct relationship is with the number of people who have the right to get behind the wheel of a given vehicle. According to most insurance companies, if there is more than one person, this circumstance increases the likelihood of an accident. Accordingly, the price for issuing a CASCO insurance policy increases.

Taking out insurance with a deductible: pros and cons

We have already said that there are diametrically opposed opinions among drivers about the need to take out insurance with additional conditions. Some believe that it is profitable, others that it is a waste of money.

First of all, the conditions offered by insurance companies are especially beneficial for careful and attentive drivers. You can reduce the cost of your policy as much as possible by increasing your deductible. If you don’t get into accidents and make do with minor repairs on your own, then the offer looks very attractive.

On the other hand, not adding such conditions may also be considered the right choice. This solution is relevant for those who are often involved in accidents on the road and do not want to waste time on paperwork, waiting for compensation, etc. Moreover, if earnings directly depend on the availability of a serviceable vehicle.

In this case, it is better to pay for the CASCO policy in full and be sure that after the accident you will receive compensation in accordance with the insurance agreement.

It is also undesirable if you fall into the following category of citizens:

We got our license late (after 40 years).
The vehicle is on loan. In this case, the cost of CASCO insurance increases.
Frequent accidents due to inexperience.

What should be done after an accident?

Let's imagine a situation where Ivan Ivanov had an accident. First, he needs to contact the company with which he entered into an insurance agreement.

If the damage caused to the car is estimated at an amount greater than that established in the contract, then all subsequent actions occur according to the standard scheme (paperwork, obtaining insurance, etc.)

True, there are certain nuances:

Firstly, the insurance company fulfills its financial obligations provided that the car is immediately taken to the service center.
Also, Ivan Ivanov must transfer the amount of money specified in the agreement to the insurer’s account within the specified time frame.

In any case, you will have to part with a certain part of the money. However, all car repairs are paid for by the insurance company.

When the amount is less than specified in the contract, the solution to this situation falls on the shoulders of Ivan Ivanov himself.

Specialist Dmitry Syachinov will talk about all the intricacies of insurance...
and what is a CASCO policy.

Before you decide to choose the company with which you are going to enter into an insurance contract, take into account a few tips from experts:

It is better to seek services from a company that has a good reputation and occupies a leading position in its field throughout the country.
Find out more information on a topic of interest. It is best to ask friends and acquaintances, or search the Internet.
Review some examples of property insurance agreements. They can also be found on the World Wide Web.
Read the terms of the contract carefully. If anything is unclear, be sure to ask your insurance agent.

Remember that making quick decisions will not always have a positive effect on the situation. It is better to spend some time to thoroughly study the issue of What is a deductible in insurance? This will help you determine the terms of the agreement that are right for you even before visiting the insurers’ office.

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Franchise in insurance- is quite a common phenomenon today and is used by many insurance companies. As a condition of the contract insurance deductible Usually they are discussed at the stage of signing documents.

CASCO with franchise - what is it?

Until 2014, this institution did not have a clear definition in Russian legislation and was applied only in practice.

It turns out that since the adoption of the Law “On Insurance”, that is, more than 20 years, the terms of the franchise have not been enshrined in any regulatory legal act. And only from January 21, 2014, the corresponding changes were made - now the insurance franchise has become a “new” resource of insurance law.

Under insurance franchise imply a part of the amount that can be determined either in the contract or in the law, which is not subject to compensation by the insurer to the policyholder and is established either as a fixed amount or as a percentage of the amount insured.

In other words, without insurance franchises the contract can be concluded, since it is not a mandatory condition. In simpler terms, the deductible is the amount that the client (the policyholder) must compensate independently upon the occurrence of an insured event.

What is a franchise used for?

So, what is a deductible for CASCO? You decide to insure your car under CASCO and choose the insurance option for the amount of 300,000 with a deductible of 10,000. You get into an accident, as a result of which the damage caused to your car amounts to 2,000 rubles. But the insurance company does not pay you anything. Shocking?

Let's find out in more detail what kind of animal this is - CASCO with franchise.

Sometimes the amount of damage in an accident is insignificant, but the hassle of filling out documents and contacting the insurance company takes quite a lot of time; Therefore, experienced drivers try to meet with insurers as little as possible.

Due to the deductible, you significantly save on the amount of insurance. This option is suitable for those who have recently received their license. As a rule, the amount of the insurance policy for beginners is significantly higher than for professionals, therefore, by including a deductible clause in the insurance contract, they will significantly reduce the amount of the insurance policy. Moreover, for the owner of an expensive car, the option with a franchise will also come in handy for the same reason.

Don't know your rights?

But insurance companies are not fools either; therefore, not everything can be insured as a result of including a deductible clause in the contract. In particular, this will apply to cars that are pledged to the bank.

But sometimes the policyholders themselves do not need a deductible. For example, you are a beginner and understand that minor accidents are inevitable (when parking, when leaving, etc.), so it is not profitable for you to constantly cover small damage yourself, even if you save on the insurance premium. Although in this case everything will depend on the conditions that the insurer offers you.

You should also pay attention to what additional services your insurance includes. For example, if we are talking about a free tow truck in case of an accident, then it is not profitable for you to apply for a franchise, since if the amount of damage is less than the amount of the franchise, the tow truck will not come to you for free.

Types of franchise in insurance

Franchise can be of 2 types:

Conditional. In this case, the insurer is completely exempt from payments if they do not exceed the amount determined by the deductible. But if we are talking about a larger amount than the deductible, then the insurer is obliged to pay this difference.
Example: a car is insured for 4,000,000, deductible - 5%. The deductible amount is 200,000. In case of an accident with damage of 50,000, the insurer does not make payments, everything is covered at the expense of the insured; but if the amount of damage is 350,000, then the policyholder is paid the entire amount of damage, regardless of the difference between the damage and the deductible amount.
Unconditional. In this case, the amount of payments is determined as the difference between the amount of losses and the amount of the deductible.
Example: a car is insured for 4,000,000 with a deductible of 5% of the payment amount. That is, when making calculations, we find out that the deductible will be 200,000. An accident occurs, as a result of which the insured suffers damage worth 150,000 rubles. The amount is less than the deductible, and therefore must be covered by the policyholder. But if the amount of damage was, for example, 250,000, then the insurer was obliged to pay you 50,000 (250,000-200,000).

As a rule, insurance companies choose an unconditional deductible.

In addition to the above types, in practice you can find the so-called dynamic franchise. The meaning of this subtype is that the size of the deductible (percentage of payments) may vary depending on various situations; for example, on the number of insured events, etc. That is, in the first insured event no deductible is paid, in the second - 5% of the insured amount, etc.

One cannot ignore the relatively new type of franchise in insurance - temporary franchise. The deductible is not paid if the period of occurrence of circumstances that could lead to an insured event is less than specified in the contract.

Benefits for the client when using an insurance franchise

In fact, if you take a closer look at the institution of franchises in insurance, you can identify clear advantages for the policyholder:

A discount when renewing insurance if you were not compensated for losses at the time the old insurance policy was valid.
Saving time.
If we are talking, for example, about a motor vehicle liability insurance contract, then such savings on premiums in the event of driving without an accident encourages the driver to comply with traffic rules.
If there are no insurance claims, then you contact the company less and have less negative experiences.
Even if the insured event does not occur, you do not “lose” the entire insurance amount; a certain amount is returned to you in the form of a discount on your next insurance.
Saving insurance premiums. The following relationship is observed: the higher the deductible, the lower the insurance premium paid by the policyholder. In this context, the franchise will be beneficial for those who enter into an agreement to insure collateral property. It is beneficial for the bank that your property is insured for as much as possible, and you, in turn, will benefit by paying less for the insurance premium.

Nuances of franchise in insurance

When you enter into an insurance contract and the insurer offers you to pay a relatively small insurance premium, find out the amount of the deductible. It is quite possible that you will sign a “dead” contract from which you will not receive any payments. Be careful and read all the terms of the agreement, even those written in fine print!

In addition, immediately discuss the terms on which the franchise will be paid and what documents are required to process and receive payments in this case. It often happens that the necessary documents were not completed at the scene of the accident, and then it is too late to wish for it, but despite this, the insurer does not pay.

If you are going to continue to cooperate with this insurance company, check what bonuses you are entitled to if you do not use the deductible during the period of validity of the insurance policy. Of course, you are not a stingy person, but you should know your benefits. The insurance market is crowded, so it is possible that you will be able to find better terms when concluding an insurance contract with a deductible.

The deductible has not yet “taken root” properly in insurance practice, so many policyholders are wary or even resist the inclusion of this condition in the contract. But it’s up to you to decide: what’s more profitable - getting a discount on the insurance premium or receiving payments in any insurance cases, regardless of the amount of damage.

When going to an insurance company to insure a car against damage and theft, every car owner should become familiar with the term “deductible,” which insurers love to include in the CASCO agreement. To avoid being misled by marketing and insurance professionals, arm yourself with objective information.

Most often, insurance agents talk about the benefits that the client will receive by agreeing to include a deductible in the policy, and forget to provide the policyholder with complete information about all the nuances that he will encounter. Therefore, you should not blindly trust the words of insurers. Our review will tell you about the pros and cons of the franchise, giving the policyholder the opportunity to make the right choice on their own.

What is a franchise?

The deductible is an amount of money that will not be paid to the policyholder upon the occurrence of an insured event. It can be expressed in absolute value - rubles, dollars, or a percentage of the insured amount under the contract. The deductible, as well as its size, is established in advance in the CASCO insurance policy by agreement between the client and the insurance company.

By agreeing to include a franchise in the contract, the policyholder receives a discount on the cost of the CASCO policy. There are two types of deductible: conditional (non-deductible) and unconditional (deductible).

Conditional (non-deductible) deductible means that all payments exceeding its amount are fully compensated by the insurer, and in this case it is not “deducted” from the amount of insurance compensation. However, if restoration of the car after a minor accident or illegal actions of third parties requires a small amount within the conditional deductible, the insurer will not pay anything to the beneficiary. This means that with a conditional deductible equal to 10,000 rubles, damage that requires up to 10,000 rubles to repair will not be repaired at the expense of the insurance company. At the same time, if the amount of damage is 12,000 rubles, i.e. exceeds 10,000 rubles, insurers will compensate it in full. In fact, this option is almost ideal for the policyholder, but at the same time it is not so beneficial for insurers. Therefore, a conditional deductible is rarely used in car insurance contracts today.

Unconditional (deductible) deductible is always deducted from the payout amount. In any insured event, the beneficiary will receive compensation from the insurer minus the unconditional deductible established in the contract. In other words, an unconditional deductible of 10,000 rubles means that all insurance payments under the policy will be made minus 10,000 rubles each time. It is more often used by insurance companies, since it is more profitable for them than conditional. A deductible deductible is less attractive to unscrupulous policyholders who want to defraud the insurance company.

Before deciding whether to include or refuse a franchise in an insurance contract, you need to understand what practical role it will play for you.

Benefits of insurance with a deductible

Considering that the conditional (non-deductible) franchise has not found wide practical application in CASCO agreements among Russian insurers, it is worth talking about the features of the unconditional (deductible) franchise. As a rule, representatives of insurance companies do not even talk about the type of franchise, using the word “franchise” without any additions, which means an unconditional franchise.

There is no clear answer to the question whether a franchise is beneficial for a car owner. It depends on the specific situation in which the needs, capabilities, driving experience of the policyholder and other nuances play an important role. Depending on them, the deductible can become an advantage or disadvantage of the insurance contract. First, let's find out what positive aspects the unconditional franchise contains.

Saving on a voluntary car insurance policy. If an unconditional deductible is included in the policy, its cost may significantly decrease for the policyholder. In this case, there is usually a correlation - the higher the deductible, the cheaper the insurance policy (you can estimate the cost of insurance for different deductibles using the online comprehensive insurance calculator). However, by including a deductible in the policy, you should be prepared not to turn to the insurer for payments for minor damage, but in case of serious insured events to receive compensation minus the deductible amount. For example, if the insurance amount under a CASCO agreement is 500,000 rubles, any payment for you will be reduced by 7,500 rubles with a deductible of 1.5%. However, any losses within this amount will not be compensated to you in principle.
Saving time due to refusal to contact the insurance company for minor insurance events. Concluding an insurance contract with a deductible can be an advantage for those who do not plan to contact the insurance company for every scratch and small chip on the body. Most often, when an insured event occurs, you need to provide the insurance company with a certificate of an accident from the traffic police or a document on illegal actions of third parties from the police department, fill out several applications, and provide the car for inspection by experts. These actions require a lot of time, effort and nerves, especially considering the possibility of standing in queues at each office. By setting a deductible, the policyholder automatically gains time that he would have to spend on paperwork in cases where “the game is not worth the candle.”

In what cases is it worth taking out insurance with a deductible?

Before including an unconditional deductible in the contract, you need to make sure that such a decision will not negate all the benefits of your CASCO insurance. Some drivers should not even think about a franchise, while for others it is a tempting and profitable offer. If, after reading the following points, you understand that they are directly relevant to you, a franchise may be beneficial to you.

Availability of free funds for independent minor repairs. Having included a small deductible in the CASCO agreement (0.5-2 percent of the cost of the car), the policyholder must be financially prepared to repair the car on their own in case of minor damage. It should be noted that the money saved when purchasing CASCO on a franchise, as a result of the discount received, will be spent on minor repairs. However, according to the theory of probability, the insured event may not occur during the term of the contract. Then the savings on CASCO insurance are obvious.
Having a long history of accident-free driving and confidence in driving skills. If the policyholder’s driving experience is more than 15-20 years, and he feels at ease behind the wheel, then the deductible established in the CASCO insurance contract will not be superfluous and, most likely, will help save money. The probability of an insured event always exists. However, if the policyholder’s driving style is safe and this has been proven by many years of positive experience, the franchise most often helps to save part of the budget due to a significant discount on CASCO, and at the same time feel protected from thefts and major accidental troubles on the road.
The desire to insure a car only for the risk of “Theft”. Full CASCO includes two risks: “Damage” and “Theft”. If the policyholder’s plans were initially to purchase a policy against theft only, because he is confident in his driving skills and does not attach importance to minor damage to body parts, then a successful alternative solution would be to issue a full CASCO insurance with a large deductible (7 or more percent of cost of the car) according to the “Damage” risk. It is not possible to insure a car only against theft with all companies, so insurance with a large deductible is a solution if you do not want to change your insurer, but at the same time it does not insure cars only against theft. In addition to protection against theft, a policy with a large deductible will help you receive compensation in the event of total loss (total loss of the car) or major damage as a result of an accident.

In what cases should you refuse insurance with a deductible?

According to the practice of settling insurance claims, the deductible is unprofitable for those who, according to statistics, get into accidents more often than others and contact the company with an application for payment. As a result, the initial savings on the cost of CASCO turns into multiple unforeseen expenses for car repairs. Young drivers and anyone who doesn't feel confident behind the wheel may lose protection with deductible insurance. Those drivers who are just starting their journey behind the wheel of a car often should not apply for CASCO with a franchise. It is safer to pay the full price for the policy to the insurance company, taking into account all increasing factors, and be confident in your insurance protection. As practice shows, minor accidents can happen to inexperienced drivers several times a month. This is especially true for drivers - women and men who received their license after 40 years of age. If there is an increased risk of insured events, it is better to calculate CASCO insurance at the full rate.

So, small unconditional franchise (0.5-2% of the cost of the car)- an ideal option for experienced drivers who, most likely, will not contact the company for minor repairs or believe that it is more profitable to do it themselves to avoid paperwork. Large unconditional deductible (more than 7%) will be useful for policyholders who want to protect their car from theft, total loss or serious damage in an accident. You should not blindly trust the advice of insurance agents about including a deductible in the policy (better read the CASCO rules and

Motor insurance under CASCO is becoming increasingly widespread, especially in cases of purchasing a new car through car dealerships. This fact is due not only to the convenience of the insurance service itself and its cost, but also to the fact that banks issuing car loans make mandatory CASCO insurance of the purchased car for the entire loan period a necessary condition for obtaining it.

Despite its many advantages, this type of insurance retains its main drawback, which is its high cost for the average consumer. The average cost of an annual CASCO policy is about 10% of the price of the car, which is a fairly substantial amount given the constant upward trend in prices for new cars. This is the only thing that holds back most motorists from insuring their car against various risks.

Against this background, more and more car owners are beginning to become interested in what a deductible is in car insurance in a general sense, and more specifically, what a deductible is in CASCO insurance . This service provides the buyer with the opportunity to receive a significant discount on the purchase of an insurance policy. How profitable is this, when can you use this service and how to pay for it - we will try to find out these questions in the following material.

What is the deductible for CASCO car insurance?

Franchising, as a way of providing benefits for doing business, has found its application in the insurance system. Thus, in CASCO, the use of a franchise is an insurance option when, in exchange for benefits for purchasing a policy, the client insuring his car (franchisee) must bear a certain share of the costs of restoring the car damaged as a result of an insured event. Thus, the insurance company (franchisor) reimburses the insured amount not in full, but only partially.

To make it more clear what a deductible is in CASCO car insurance, we can give the following example. Let the client decide to insure his car, the price of which is 500,000 rubles, against accidents under an unconditional franchise in the amount of 20,000 rubles. Then, according to the terms of the contract, when assessing the cost of damage caused as a result of an accident in the amount of up to 20 thousand rubles, he is obliged to restore the car at his own expense and the insurance will not be paid. If the cost of repairs is estimated at 70 thousand rubles, then the insurance company will only pay the amount that exceeds the established threshold, i.e. 50 thousand rubles, and the balance is 20 thousand rubles. The client pays extra.

Video: Excess for CASCO insurance

So, the main idea of the franchise for CASCO insurance is as follows: the higher the amount of the established franchise threshold, the greater the benefit provided to the client when purchasing a policy. In this case, the franchise threshold can be determined as:

specific amount;
percentage of the cost of the car;
or the cost of damage caused to him as a result of an insured event.

The amount of the discount provided for the purchase of a policy in each insurance company can be set individually and vary greatly, but it is mainly determined in the amount of double the amount of the deductible threshold.

Franchise options for CASCO insurance

There are several main types of CASCO franchising:

1. Conditional franchise

The meaning of this insurance option is to set a fixed amount of damage caused when an insured event occurs. If the damage incurred does not reach the established threshold, the policyholder will completely restore the car at his own expense. If the damage assessment shows that the cost of repairs exceeds the established threshold, then the restoration is fully paid for by the insurer, and the policyholder does not take any part in financing the repairs.

For example, if a CASCO agreement is concluded under a conditional franchise with a threshold of 5,000 rubles, then if a minor accident occurs with damage of 4,900 rubles, the owner of the car pays for its repairs out of his own pocket. If the damage is estimated at 5,100 rubles, then the restoration of the car falls entirely on the shoulders of the insurance company.

The conditional franchise option is undoubtedly an advantageous form of car insurance for the car owner, but in practice it is quite rare. This is due to the fact that in this option, fraud on the part of the policyholder is not excluded, when he deliberately causes damage to the car in order to bring the amount of damage to the limit established by the contract in order to shift the repairs to the shoulders of the insurance company. Therefore, insurers try to avoid this insurance model.

2. Unconditional franchise

This insurance option requires the mandatory participation of the car owner in its restoration by paying the full or partial cost of repairs. The portion of restoration costs that is paid by the owner may be a fixed amount, a percentage of the value of the car or the damage caused.

Example: fixed unconditional franchise for 10 thousand rubles. In this case, if the damage resulting from the insured event is less than this amount, then it is paid at the expense of the car owner. If the damage is greater, for example 30 thousand rubles, then 10 thousand will be paid by the car owner, and 20 thousand rubles by the insurance company.

The difference between an unconditional deductible and a conditional one is that the policyholder always pays out of his own pocket part or the full cost of repairs, depending on the ratio of the amount of assessed damage and the threshold deductible amount established by the contract.

When setting the deductible threshold as a percentage of the cost of the car, depreciation of the car is taken into account. In this case, the deductible amount (a threshold amount determined in percentage terms) decreases over time in proportion to the cost of the car.

If the CASCO agreement is concluded under an unconditional deductible, expressed as a percentage of the cost of the damage caused, then the car owner will pay for a strictly fixed part of the restoration repairs for each insured event. For example, with a 10 percent deductible for damage estimated at 50,000 rubles, the car owner must pay 5,000 rubles to repairmen, and the insurance company - 45,000 rubles.

3. Dynamic franchise

This insurance option involves taking into account the policyholder's impeccable driving history. The fewer insured events a client has in previous insurance periods, the greater the confidence in him from the insurance company, the greater the discounts and bonuses offered for the purchase of a policy. A dynamic franchise encourages policyholders to drive a car without accidents, since a high percentage of insurance is paid to them only for the first and second insured events, and for each subsequent insured event, the share of insurance compensation is consistently reduced by 5%.

4. Temporary franchise

This insurance option allows the client to choose the time period for which the insurance contract is valid. For example, if the owner of a car uses it only on weekdays, then he can enter into a CASCO agreement with a temporary franchise valid for 5 working days a week. If damage to the car occurs during these days, the insurance company will fully compensate for its repair. If an accident occurs on weekends, then the repairs are carried out by the owner at his own expense, and the insurance company does not pay insurance. This system allows you to reduce the cost of the policy for the client compared to the standard system.

There may be other franchise options for CASCO insurance. For example, options for providing benefits through a CASCO franchise involve payment of a limited amount of the insured amount only if the insured is the culprit of the accident. In this case, the cause of the accident should not be a malicious violation of traffic rules. If the accident in which the policyholder's car was damaged was caused by another person, then the resulting damage is compensated by the insurance company in full without taking into account the deductible.

Video: Ways to save on CASCO - Method 1: Franchise

Who benefits from a car insurance deductible?

1. For insurance companies

The deductible allows the insurer to get rid of payments for minor damage to the car when the amount of damage does not exceed the established deductible threshold. The essence of saving money and time for the insurance company here is that, regardless of the amount of payments, the insurer has to launch the entire cycle of the bureaucratic mechanism of investigation, damage assessment and financial flow, which requires certain material costs, which in some cases may exceed the amount of insurance payments made. Therefore, it is not profitable for insurance companies to investigate and pay small insurance amounts. It is important for them to have fewer insurance claims with a stable flow of insurance premiums.

2. For vehicle owners - policyholders

A deductible for the policyholder can be both profitable and unprofitable. It all depends on the specific insurance options under the franchise, the experience and qualifications of the driver, driving mode and many other factors. The advantages of an unconditional franchise for policyholders are:

Saving time and money due to the fact that for minor damages there is no need to contact the traffic police and the insurance company in order to obtain insurance and make repairs. This point applies mainly to the unconditional franchise. These procedures may take too much time and additional costs that are not beneficial to the policyholder himself, and the insurance received may not be worth such sacrifices.
A significant discount on the purchase of a policy; the higher the deductible threshold, the cheaper the insurance policy. Careful, accident-free driving will significantly reduce the cost of car insurance compared to the usual CASCO option. For an accident-free driver, insurance companies offer a system of progressive discounts when the cost of the policy will decrease annually.
Often minor damages caused are not recorded in the policyholder's history, and it is considered accident-free. Therefore, a new policy can be purchased at an even greater discount.

Disadvantages of a franchise

The main disadvantages of CASCO insurance with a franchise include:

This form of insurance is unavailable for cars purchased on credit. The fact is that lenders are interested in keeping the value of the pledged car unchanged, but they cannot be sure that the borrower will independently repair various minor damages that reduce the market price of the car. In addition, the cost of the policy for the entire loan period is paid by the lender, and the franchise is not profitable for them.
There is a possibility of underestimation of damage caused by specialized service centers of insurers in order to avoid insurance payments on the basis that the amount of damage does not reach the deductible threshold.

In what cases is it better to choose insurance with a deductible?

If you have the finances to carry out minor repairs on your own.
Minor accidents with minor injuries occur frequently, especially among novice drivers. They worsen your driving history and cause an increase in the price of your policy for the next year. Therefore, the franchise helps to avoid such a rise in price in cases of minor accidents.
If you have extensive experience and experience of accident-free driving, when the driver is confident that he will not be the culprit of the accident.
A CASCO contract for the risk of damage, concluded for a large deductible amount, may contain as a bonus insurance against theft, theft or destruction, which can be beneficial for a certain category of car owners.

Video: CASCO calculation - reducing the cost of an insurance policy through a deductible.

How to calculate the franchise correctly?

To do this, you need to proceed from three main values indicated in the insurance contract:

type of franchise;
franchise amount;
insurance amount of the contract.

For example, we have the initial data:

insurance amount – 1 million rubles;
the deductible amount is 0.5% of the sum insured, which is 5,000 rubles.
If it is given as a percentage of damage, then let it be equal to 20%.

In this case, two calculation options are possible:

A deductible or conditional type of calculation, when the amount of the deductible is subtracted from the estimated amount of damage. For damage of 20 thousand rubles, the insurance payment will be 20,000-5,000 = 15,000 rubles. For damage less than 5,000 rubles, insurance is not required.
An unconditional type of calculation, when the deductible amount is determined as a percentage of the amount of damage and amounts to 20,000 x 0.2 = 4,000 rubles. The amount of insurance payment will be 20,000-4,000 = 16,000 rubles. The policyholder pays the remaining 4,000 rubles to the repairmen himself.

Thus, the franchise is designed to reduce the cost of the insurance policy and is beneficial to the client when there is a need for car insurance. However, to obtain insurance when an insured event occurs, you need to keep a “cool head” in order to fulfill all the conditions that are discussed in the contract to receive compensation.