Before insuring a car, you should familiarize yourself with the basic terms that are used in this procedure, in particular the “franchise”. Insurance agents are sure to talk about all the benefits of acquiring a policy. But not the fact that they will explain the nuances of using CASCO with a franchise. What is it and on what conditions this service is made out, read in more detail in this article.
Definition
Franchise - the amount of money that a person will have to compensate for themselves upon the occurrence of an insured event. It can be indicated in% or in 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 negligible, then the insurer will not receive anything under the policy. Example: a franchise is 10,000 rubles, and repair costs are 8,000 rubles. According to the terms of the contract, in this case the client will not receive anything. But if the amount of costs is 12 thousand rubles, then the insurance will compensate for the damage in full and will not deduct the cost of the deductible. 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 level of the deductible.
Most often, customers prefer to buy a CASCO policy with a franchise. What does it mean? In any insurance event, the client will receive compensation minus the predetermined amount (unconditional deductible). Example: a franchise of 3 thousand rubles is prescribed in the policy. The amount of expenses for the restoration of a car is 10 thousand rubles. The client will receive from them only 7 thousand rubles. The remaining amount he will have to compensate for themselves. Such policies are purchased more often.
Additions
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, car wear is taken into account. The amount of the franchise and the period of use vary in direct proportion.
Example: CASCO insurance deductible is set in the policy in the amount of 15% of the amount of damage. 50 thousand rubles will be required to restore a car. From the company (SK), the client will receive 50 * (1-0.15) = 42.5 thousand rubles. And the balance - 7.5 - will pay on its own.
Here's how the franchise works in CASCO.
pros
Depending on the specific situation, driving experience, needs and capabilities of customers, such policies have several advantages.
- Saving on the purchase. A policy with an unconditional franchise is always cheaper than without it. Typically, the reduction is twice the amount of a fixed amount. This will be especially noticeable when calculating costs for young drivers (up to two years). Raising factors are usually set for them. 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, by purchasing such a product, it is worth it to be prepared for the fact that part of the costs in any case will have to be compensated independently.
- Time saving. With minor scratches on the body or other damages, the client will not have to contact the company at all for compensation. Compensation of the franchise under CASCO in such cases is not provided.
- According to statistics, cars with a franchise get into accidents less. There is a psychological factor. The driver understands that even though the car is insured, he will have to compensate part of the costs himself. We can say that the franchise forces people to manage the vehicle more carefully.
Benefits of an Insurance Company
The presence of a franchise eliminates the need to launch bureaucratic red tape in order to pay a small refund of 2-3 thousand rubles. The 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 advantage applies to the client himself. A person does not have to prepare a pack of documents every time to get a refund in the UK. Especially, keep in mind that the paperwork process, if the car needs repair, can drag on for several months.
Other options
In addition to the traditional franchises considered, SK offer other policies. They are intended for specific groups of customers.
Dynamic CASCO franchise, or payout from the second case. The essence of this proposal is that the first damage in the account is indemnified by the insurance company in full. From the second, a franchise begins to operate. Sometimes its percentage increases with each client's appeal to the UK. At the same time, it can change exponentially.
The preferential deductible is used only if the culprit of the accident is not the client. SK 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 may be used. What does it mean? The policy spelled out not only damage options, but also the time in which they occurred. If the insured event occurred sooner or later, then the client pays all costs independently.
Example: A driver uses a car only on weekdays. On weekends he travels by public transport. He decided to issue a CASCO with a temporary franchise. If the insured event occurs on a weekday, then all costs are compensated by the company. But if the driver crashes on Sunday, you will have to pay money to restore the car from your 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 the policy will be spent on repairs. But the insured event may not occur. Then the benefits are obvious.
- Confidence in driving skills and the availability of long trouble-free experience. If the driver feels like a fish in the water behind the wheel, then a CASCO policy with a franchise will help save money. The probability of an accident always exists. But if a safe driving style is proven by many years of experience, then the franchise will help to save part of the family budget.
- Full CASCO includes Damage and Hijack. Suppose a client wants to insure himself only against the first risk, because he is confident in his skills and will not pay attention to minor scratches on the body. Then it is worth acquiring a full CASCO with a large franchise (7% or more) that compensates for “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 acquiring a full policy.
When a franchise should be abandoned
According to statistics, this service is disadvantageous to customers who often get into accidents. 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 the coefficients. Minor accidents with such customers occur several times a month.
Is the franchise profitable?
There are different types of policies on the market that may suit one or another client. Experienced drivers are better off acquiring 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 on them is not provided, but the psychological factor will still work. For drivers whose main risk is the possibility of theft or destruction, it is better to purchase a hull with the maximum amount of deductible, for example, the “50 to 50” program.
Amount Ratio
Each SC itself calculates limits for damages. Cases where a 0 or 100% deductible 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 conditions: 0.5-1% of the cost of restoring the vehicle as a result of an accident, unlawful actions of others, and 5% of the risk of theft are 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%.
Car insurance
It’s still worth exploring all the nuances of the policy. Especially if the vehicle is purchased on credit. Banks have their own lists of partners-insurers with whom the terms of cooperation have been approved in advance. Clients can conclude an agreement with the largest companies on the market by purchasing CASCO from Sberbank OJSC. The 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 price of the car. But in this case, the bank will be more protected. Payment will be made in proportion to the size of the loan minus the deductible. In this case, funds are transferred either to the service station account, which 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 pay off part of the debt from his pocket.
Miser pays twice
When the agent says: “We are ready to lower your tariff a little”, the client should understand that in this case he will have to compensate most of the funds on his own. Small savings in the early stages will result in an increase in the franchise rate (amount). Unfortunately, the insurance culture in Russia is not sufficiently developed. Since people do not fully understand the essence of all concepts and the relationship between payment and deductible, they agree to the offer of agents to purchase a policy with 5-10% of personal expenses.
50 to 50
Only in compulsory motor liability insurance the deductible is fixed in advance. But in this case, the car is insured that it can hit someone. Most often, drivers purchase this policy for the period of inspection. Therefore, for them, the key factor is the price. The same rule applies here. By reducing the price of the policy, SK increases the deductible. But such insurance can only be suitable for experienced drivers. But they 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 franchise. What it is? In the event of an accident, the client can contact the insurance company for compensation for the costs of restoring the vehicle. After registration of all securities, payment will be made within the insured amount, but less the deductible. That is, the insured person will still incur part of the losses, but their amount will be pre-specified in the contract in the form of a fixed amount or interest.