CASCO franchise - what is it? How does the franchise work in CASCO?

Before you insure the car, it is worth familiarizing yourself with the basic terms that are used in this procedure, in particular the "franchise". Insurance agents will tell you about all the benefits of acquiring a policy. But not the fact that they will clarify the nuances of using CASCO with the franchise. What is this and on what conditions is this service designed? Read more in this article.

Definition

A deductible is a sum of money that a person will have to compensate for himself on the occurrence of an insured event. It can be denoted 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 acquire 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 repairing the car is insignificant, the insurer will not receive anything on the policy. Example: the franchise is 10 000 rubles, and the repair costs - 8 thousand rubles. Under the terms of the contract, in this case the client will receive nothing. But if the amount of costs is 12 thousand rubles, then the insurance will compensate for the damage completely and will not deduct the cost of the franchise. In practice, this option is not always used, as often fraud occurs, when the client specifically increases the amount of damage to the level of the franchise.

Most often, customers prefer to buy a CASCO policy with a franchise. What does it mean? In any insurance event, the customer will receive a refund less minus the pre-determined amount (unconditional deductible). Example: in the policy is a franchise in the amount of 3 thousand rubles. The amount of expenses for the restoration of the car is 10 thousand rubles. The client will receive only 7 thousand rubles from them. The rest of the amount he will have to compensate on his own. Such policies are purchased more often.

Additions

Insurance CASCO franchise unconditional is of two types. Part of the costs that the client will restore independently, can be expressed by a specific amount or in percent. 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: in the policy, an insurance deduction of CASCO is set at 15% of the amount of damage. To restore the car will need 50 thousand rubles. From the company (UK) the client will receive 50 * (1-0,15) = 42,5 thousand rubles. And the rest - 7,5 - will pay independently.

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.

1. Saving on buying. A policy with an unconditional franchise is always cheaper than without it. Usually the reduction is twice the fixed amount. Especially it will be noticeable when calculating costs for young drivers (up to two years). Increasing coefficients are usually set for them. The discount grows in proportion to the fixed amount. You can calculate the approximate cost of the policy by using the online calculator on the website of the insurance company. But, when purchasing such a product, it is worth to be prepared for the fact that part of the costs in any case have to be compensated for independently.
2. Saves time. For small scratches on the bodywork or other damages, the client will not have to contact the company for compensation. Compensation of the franchise under CASCO in such cases is not provided.
3. According to statistics, cars with a franchise are less likely to fall into an accident. There is a psychological factor. The driver understands that even though the car is insured, it will have to compensate some of the costs on its own. We can say that the franchise makes people manage the vehicle more cautiously.

Advantages of the insurance company

Presence of the franchise relieves it of the need to launch bureaucratic red tape in order to pay a small compensation of 2-3 thousand rubles. The mechanism for issuing documents is always the same. But the cost of this procedure can greatly exceed the amount of the payment itself. CASCO franchise saves the costs of office work. The same advantage applies to the client. A person does not have to prepare a stack of documents every time to get a refund in the UK. Especially there is to take into account that the process of issuing securities, if the car needs to be repaired, can drag on for several months.

Other options

In addition to the traditional franchises considered, the UK offers other policies. They are for certain groups of customers.

Dynamic franchise CASCO, or payment from the second case. The essence of this proposal is that the first account for the damage is reimbursed by the UK in full. From the second franchise begins to act. Sometimes its percentage increases with each client's appeal to the UK. At the same time, it can change geometrically.

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

Depending on the time when the insured event occurred, a separate CASCO with a deductible can be used. What does it mean? In the policy are prescribed not only the options for damages, but also the time in which they arose. If the insured event occurred earlier or later, then the customer pays all the costs himself.

Example: the driver uses the car only on weekdays. On weekends, he moves by public transport. He decided to issue CASCO with a temporary deductible. If the insured event occurs on a weekday, then all costs are compensated by the company. But if the driver gets into an accident on Sunday, money for the restoration of the car will have to be paid out of his pocket.

When to buy a policy

• If there are available funds for self-covering part of the costs. Discount, provided when buying a policy, just and will be spent on repairs. But the insured event may not occur. Then the benefit is obvious.
• Confidence in driving skills and the availability of long trouble-free experience. If the driver feels like a fish in the water while driving, the CASCO policy with a franchise will help save money. The probability of an accident always exists. But if the safe driving style is proved by many years of experience, then the franchise will help to save part of the family budget.
• Full CASCO includes "Damage" and "Ugon". Let's say a client wants to hedge only from the first risk, because he is confident in his skills and will not pay attention to minor scratches on the bodywork. Then it is worth buying a full CASCO with a large franchise (7% or more), compensating for "Damage". "Hijacking" 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 the franchise is worth noting

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

Is the franchise profitable?

In the market there are different types of policies that can be suitable for certain clients. Experienced drivers are better off acquiring a full CASCO, which fully compensates for damage caused by third parties. People who have recently received rights should pay attention to insurance with a dynamic franchise. A big discount is not provided for them, but the psychological factor will still work. Drivers whose main risk is the possibility of theft or destruction, it is better to acquire CASCO with the maximum amount of the franchise, for example, the program "50 to 50".

The ratio of the sums

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

Insurance of credit cars

To penetrate into all the nuances of the policy is still worth it. Especially if the vehicle is purchased on credit. The banks have their 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 OJSC Sberbank. The franchise for these transactions is mandatory. Although the cost of the policy can be reduced without increasing your own risks. For example, if the customer wants to insure the 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. The payment will be made in proportion to the loan amount minus the deductible. In this case, the funds are transferred either to the account of the SRT, which was engaged in the restoration of the car, or the bank, if the vehicle was stolen or completely destroyed. But if the amount of payment does not cover the balance on the loan, the client will still have to repay some 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 that case he will have to compensate most of the funds himself. A small economy in the first stages will result in an increase in the rate (amount) of the franchise. 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 franchise, they agree to the offer of agents to purchase a policy with 5-10% of personal expenses.

50 to 50

Only in OSAGO the size of the franchise 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, price is the key factor for them. Here the same rule applies. By lowering the price of the policy, the UK increases the deductible. But such insurance can only be approached by experienced drivers. But they also realize their mistake only when an insured event occurs, when it turns out that the policy covers only 50% of the costs.

Conclusion

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