Insurance company franchise: where to start, advantages. Casco franchise: what is it, advantages, and who benefits from it

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

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

Insurance of movable and immovable property

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

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

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

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

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

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

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

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

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

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

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

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Types of franchises and their brief characteristics

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

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

Advantages and disadvantages

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

Franchise beneficial for customers the following reasons:

• saving money due to lower insurance premiums (for example, if insurance is needed only formally, when applying for a mortgage, then due to the establishment of the maximum deductible, you can spend the minimum amount on insurance payments);
• saving time (if the damage from insured event minimal, no need to spend time interacting with the company, fill out extra paperwork);
• if damage never happens, there will be no need to use extra funds for the payment of insurance premiums;
• franchise insurance is beneficial for recovering large losses;
• when registering a franchise, the client is given a discount on the insurance policy, sometimes comparable to the size of the franchise.

Franchise beneficial for insurers, insofar as:

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

Auto insurance franchise

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

There are two types insurance for car owners:

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

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

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

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

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

For car insurance, see next video plot:

CASCO policy in car insurance

Total exists two ways to issue a CASCO policy:

• full version;
• with a franchise.

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

The following registration conditions franchise insurance:

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

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

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

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

How to choose the right franchise

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

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

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

The nuances of insurance when traveling abroad

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

Usually tourists traveling abroad conclude the following insurance contracts:

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

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

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

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

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

Mikhail Adamov

Reading time: 5 minutes

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The word "franchise" has a foreign origin. Not everyone understands it, however, you need to navigate the topic, because today the franchise is widely used in auto insurance. Is it good for car owners? A question that needs some clarification. Let's try to figure out what are the features of a franchise in car insurance, its main types, advantages and disadvantages in car insurance under CASCO. An approximate calculation of the size of the franchise will help to understand the essence of the subject.

What is a franchise in insurance - explained in simple terms

The activities of insurance companies are inextricably linked with the franchise. It is used in almost any insurance product, and auto insurance is no exception. Franchise is translated from French as a benefit. If we consider the deductible in relation to insurance, then this is a certain part of the damage that is not reimbursed by the insurer. It is called the irreparable part of the damage. All the nuances must be spelled out in the property insurance contract.

Speaking in simple terms, the deductible is part of the insurance payments, which the client voluntarily waives if the insured event does occur. When is the franchise amount determined? When issuing an insurance policy. This may be a specific amount expressed in rubles, or a percentage of the insurance payment. A simple example: the car was damaged in an accident - it suffered damage, insurance compensation is calculated - the amount of damage is estimated, the deductible is deducted from the total amount of damage. The amount received is paid to the insured.

The Russians strive to avoid it with all their might. In the understanding of our citizens, this is something superfluous and unnecessary. In fact, this is a real opportunity for savings. At small size deductible, the damage is covered in full, but in this case there will be a high insurance rate. With a large deductible, the opposite is true: incomplete coverage of the loss at a lower cost of insurance.

Types of franchise for auto insurance - the difference between conditional and unconditional

Auto insurance franchise can be of two main types: conditional and unconditional.

1. What suggests conditional franchise ? If the damage caused to the car exceeds the amount of the deductible, the insurer will reimburse it in full. If the loss did not exceed the amount of the deductible, then the insured does not receive any payments from the insurance company. Thus, the owner of the car is either not compensated for the damage at all, or is compensated for 100%.
2. Unconditional Franchise assumes that the insured always covers independently a certain part of the loss, that is, part of the damage will not be reimbursed to him by the insurer. The amount of compensation will be less due to the deduction of the deductible, which can be expressed in two ways: have a fixed amount or as a percentage of the damage.

To understand how each type of deductible is actually applied in insurance, a table will help that clearly demonstrates the amount of compensation with the same initial data and the same size damage:

New deductible options are emerging in auto insurance. For example, the unconditional view is used in the dynamic version. It takes effect when damage occurs a second time. The contracts indicate that the size of the deductible increases with the occurrence of each new insured event. It looks something like this:

• In the 1st case, the dynamic deductible is 0% (full refund).
• At the 2nd - 5%.
• With the 3rd - 10%.
• At the 4th and further - up to 40%.

Another variation is the preferential franchise. There is no exact term yet, the name may be different. What is the point? The contract fixes cases to which the franchise does not apply. Suppose if it is established that there is no fault of the insured in the accident. This means that there will be no deductible deductible when calculating payments.

Pros and cons of franchise insurance when insuring a car under CASCO

Car insurance has long been prerequisite for vehicle owners, especially for new or credit cars. The CASCO policy is widely used in Russia. This is a convenient insurance product, although it also has its pros and cons, which are constantly discussed in information sources.

The most significant point for this type of insurance is the high cost, which is constantly increasing against the general background of an increase in the cost of new cars.

The cost of CASCO insurance for the year is 10% of the price of the car. Agree, a lot of money. That is why car owners began to seriously consider without conditional franchise from CASCO. In this option, the price of the insurance policy will have a significant discount. Here is your advantage. Is it profitable and what does the car owner “sacrifice”?

Having CASCO insurance, a person counts on compensation for any damage caused to the car, their degree does not matter. The insurer will pay anyway. If CASCO insurance is issued taking into account the deductible, then a clearly defined amount is implied, which is not paid by the insurer in the event of damage. The policy is cheaper by this amount.

Franchise insurance completely transfers the costs of eliminating minor damage to the shoulders of the insured. If the damage is large, and it exceeds the deductible, then the insurer connects and pays the damage.

Cons of CASCO insurance using a franchise:

• This type of insurance practically unavailable for credit cars. The bank is interested in the safety of collateral, which is a car. However, there is no guarantee that the owner will deal with minor damage, such as scratches, broken glass, and so on.
• In addition, when buying a car on credit, the cost of CASCO for the entire loan period (3-5 years) is paid by the bank. It is the lender who transfers the cost of the policy to the insurance company, This means that franchising is simply not possible.
• Another disadvantage is sometimes insurers refuse to pay out, arguing that the amount of damage does not exceed the deductible. Loss assessment is a relative matter, each service center has its own criteria. Therefore, often the cost of repair work is deliberately underestimated by representatives of the insurer. If the owner turns to other specialists, then there is a chance of getting a larger bill.

It is important for buyers of CASCO insurance with a franchise to understand one nuance.

Small losses that often occur do not affect the payments in any way, therefore, they are not recorded in the insurance history, which means that the driver’s driving is considered breakeven.

For this reason, the insurer has no reason to increase the cost of the next contract; moreover, a new policy can be purchased at a discount.

How to calculate deductible for auto insurance correctly

For the correct calculation of the deductible for auto insurance, you need to rely on three parameters specified in the contract. These are the sum insured, the deductible percentage and the type of deductible chosen.

Let's look at an example. Initial data:

• The amount of insurance is 1,000,000 rubles.
• The deductible is 0.06% of the insurance amount. This means that the franchise amount is 1,000,000 × 0.06% = 600 rubles.
• The deductible can be a percentage of the amount of damage, let's say 20%.

The calculation of payments will depend on the type of franchise and the amount of damage:

1. Option number 1. Most often, the unconditional type (subtracted) is used, in which the amount of the deductible is subtracted from the amount of damage. Suppose the damage was estimated at 2000 rubles. The company will pay the client 1,400 rubles (2,000 - 600). If the damage amounted to 300 rubles, then the insured is not entitled to compensation - there is no excess of the deductible.
2. Option number 2. Unconditional view (in percent). Suppose the damage was estimated at 2000 rubles. The company will pay the client 1,600 rubles (2,000 - 20% = 1,600). If the damage amounted to 300 rubles, then the insured is entitled to 240 rubles (300 × 20% \u003d 60).

Of course, a third option is also possible - a conditional franchise. However, it is practically not used for car insurance. The reasons are simple and banal. Cases of fraud on the part of policyholders have become more frequent, who tried to increase a small loss “artificially” in order to receive a full payment (100%). It is this type that is considered the most interesting for car owners.

When applying for a policy, insurance companies can offer not only insurance, but also a franchise. The latter is an opportunity to save money and time by taking on additional obligations. Franchise in insurance has been operating on the market for many years. What it is, in simple words, can be explained to each driver.

Complicating the situation is a variety of franchises, each of which offers unique conditions and imposes certain obligations. In order not to get into an awkward situation with an insurance company, it is recommended to familiarize yourself in advance with possible options, their strengths and weaknesses.

The legislative framework

The franchise first appeared in Russia at the official level in 2014, when the law “On the organization of insurance business in the Russian Federation” was adopted. Up to this point, the franchise was used, but the terms and conditions were regulated by the insurers independently.

In 2019, all firms are subject to federal law, the rules for the provision of services are unified and transparent. Part of the losses is reimbursed by the insured in accordance with the contract.

What is it in simple words

The franchise quickly became popular with insurers, while not all drivers are aware of this possibility. Getting insurance with a deductible is a way to save money.

The deductible is considered part of the insurance payment, which the driver voluntarily waives upon the occurrence of an insured event.

At the stage of signing the contract and discussing the conditions, the insurer and the policyholder agree on the amount of damage. It can be either fixed in monetary terms or as a percentage.

To understand the operation of a franchise, one can imagine a simple situation. Suppose a citizen has a car worth 600 thousand rubles. He decided to secure his property and chose a franchise for CASCO insurance, becoming a client of the company and denoting the amount of non-return of 30 thousand rubles.

If a citizen gets into an accident and the car suffers less than the specified amount, the driver will compensate for the damage from his own funds. If the amount of damage exceeds the amount, it will be reimbursed by the insurance organization.

If after an accident you need 90 thousand for damages, the driver will pay 30 thousand, the rest will remain with the insurance.

Kinds

There are more than 10 franchises, but not all are used in car insurance. The most popular insurers are:

The main difference between the zero deductible is the high cost of the CASCO policy, as insurance companies protect themselves from risks.

The downside is the need to collect a complete set of documents every time and undergo an examination, even if the car has a small scratch for a couple of thousand rubles of repair. This franchise is the least popular, as the main beneficiaries are the insurers, not their clients.

Conditions

There are several situations when it is beneficial to open CASCO with a franchise:

• the citizen is an experienced driver and rarely gets into accidents;
• a citizen is able to independently compensate for minor damage and does not want to collect documents in case of minor accidents;
• the driver is interested in the low cost of OSAGO, especially if the main risks are theft and theft, and not damage to property, life or health.

Unconditional

Unconditional franchise is the most popular in Russia. It is beneficial for the company to set the amount that the client will pay. This helps to avoid bureaucratic problems in the event of minor insured events.

Here are some examples:

• the cost of the franchise is 20 thousand rubles, the car suffered 17 thousand rubles. The owner pays for repairs out of his own pocket;
• the cost of the franchise is 20 thousand rubles, the car suffered 40 thousand rubles. The insurer will contribute 20 thousand rubles, the rest will remain with the insured.

You can set a certain percentage of the damage suffered. For example, the deductible is 20%. If the car was damaged for 10 thousand rubles, the insurance company will pay 8,000 rubles, the driver will pay 2,000.

Advantages and disadvantages

Casco insurance with a franchise has many strengths, the main ones are:

• significant time savings. If minor damage has been caused, there is no need to contact the insurance company. If an insured event occurs, you will have to take a certificate from the traffic police about an accident and about the absence of a case, find time to undergo an independent examination (paid by the driver), fill out applications. Employed citizens not ready to spend several days each time filling accidents;
• discount upon receipt of the policy. When a deductible is added to the contract, the amount insured is reduced. The insurer is better protected from risks, so they can offer a discount. The more obligations a citizen undertakes, the lower the cost of CASCO will be;
• when renewing the contract with the same insurer, you can get a discount. If a citizen has not been in an accident for a whole year, he will issue a new policy at a discount. The longer there are no accidents, the greater the discount will be;
• opportunity to save money. Additional investments for repairs are not required, the insurance company is responsible for large damages.

There are also downsides to franchising. The main disadvantage is the disadvantage for citizens, who often get into small accidents. They will have to spend money on repairing minor damage, and with an unconditional franchise, the amount can reach up to 100 thousand rubles.

When choosing a franchise, you need to pay attention to the insurer. Most offer unconditional franchises, other types are available in large cities of the country. It is recommended to read customer reviews and ratings of independent agencies in order to conclude the most profitable contract.

Today I will tell you about what is insurance franchise. Once I already wrote about what it is, so I’ll immediately make a reservation that these are completely different concepts that have nothing in common except for the name: you don’t need to compare and confuse them in any way. So, a franchise in insurance - what is it in simple words: you will learn about this by reading this publication.

What is a franchise in insurance?

Any insurance contract or insurance policy, no matter what insurance product in question, contains a series important conditions, for which without fail should be taken into account by the insurer. So, one of these conditions is the franchise or the size of the franchise. What it is?

Franchise in insurance is the amount of insurance compensation that will not be paid to the beneficiary upon the occurrence of an insured event.

In other words, if the insured himself is the beneficiary, he will not receive part of the reimbursement stipulated by the franchise, and if the beneficiary is a third party, then the insured will have to independently cover his losses within the franchise.

The lower the deductible under the insurance contract, the higher the insurance rate, and vice versa, which is logical. With a zero deductible, that is, with its complete absence, the insurance rate is always the maximum.

A franchise in an insurance contract can be stipulated in two ways:

1. In absolute terms(for example, 1000 rubles, 10000 rubles, etc.);
2. As a percentage of the sum insured or the amount of the loss caused(for example, 3% of the sum insured, 1% of the amount of damage, etc.)

Conditional and unconditional franchise.

In addition, the deductible in insurance can be of two types: conditional and unconditional.

Conditional franchise means that if the calculated amount of damage does not exceed the amount of the established franchise, then the insurance payment will not be made at all, and if it exceeds this amount, the payment will be made in full, without deducting the amount agreed by the franchise.

Unconditional franchise means that the amount provided for by the deductible is in any case deducted from the amount of the insurance indemnity and is not paid.

In practice, insurers most often use the unconditional franchise; the conditional franchise is now used extremely rarely, especially among domestic insurers.

When concluding an insurance contract or buying an insurance policy, it is necessary to very clearly find out not only the amount of the deductible, but also the method of its calculation, as well as the type: conditional or unconditional franchise.

Examples of the application of a franchise in insurance.

To make it clearer what a franchise is in insurance, let's look at a few examples.

Example 1 . The insurance contract indicates the sum insured is 100,000 rubles, the size of the unconditional deductible is 2% of the sum insured.

There was an insured event, the amount of damage was estimated at 1500 rubles. The beneficiary does not receive any payment at all, because. the amount of damage is less than the established deductible (2000 rubles).

There was another insured event, the amount of damage was estimated at 5,000 rubles. The beneficiary will receive a payment of 3,000 rubles (5,000 - the franchise amount is 2,000).

Example 2 . The insurance contract indicates the sum insured is 100,000 rubles, the size of the conditional deductible is 2,000 rubles.

An insured event occurred, a certain amount of damage amounted to 1800 rubles. The beneficiary does not receive any payment because the amount of damage is less than the established deductible.

There was another insured event, the amount of damage was estimated at 5600 rubles. The beneficiary receives the entire amount of the calculated damage - 5600 rubles, because It's a conditional franchise.

Example 3 . The insurance contract indicates the sum insured is 100,000 rubles, the size of the unconditional deductible is 3% of the amount of damage.

There was an insured event, the damage was estimated at 10,000 rubles. The beneficiary will receive a payment of 10,000 - 3% of 10,000 = 9,700 rubles.

Some types of franchise in insurance.

Dynamic Franchise- this is one of the varieties of unconditional deductible, the amount of which can change during the validity of the insurance contract. It always changes upwards, that is, the more insured events occur, the less the beneficiary under the contract will receive with each case.

It often happens that for the first insured event an unconditional deductible of 0% (0 money units) is set, that is, it simply does not exist. But for the second, for example, it is already 5%, for the third - 10%, for the fourth - 15%, etc. This is a dynamic franchise.

Preferential franchise- another type of deductible in insurance, in which the deduction of the specified amount from the compensation is not applied under certain circumstances (so-called benefits). Well, for example, in auto insurance, if the insured is to blame for an accident, the deductible applies, and if the other party does not apply. This is an example of a preferential franchise.

Recourse franchise- a type of deductible in insurance, in which, in the event of an insured event, the insurance company first pays the beneficiary the full amount of the calculated damage, excluding the deductible, but then the insured is obliged to reimburse the insurer for part of this payment in the amount of the established deductible.

Mandatory franchise- a condition of the contract, under which, when prolonging the contract for a new term, the deductible is established without fail, if during the previous period insured events occurred and payments were made.

Why do you need a franchise in insurance?

So, a franchise is a kind of financial instrument that allows an insurance company to reduce its risks and minimize the cost of paying insurance claims. However, her income in this case also decreases, because. the insurance rate in the case of a franchise is always lower.

At first glance, it seems that a franchise is a tool that is necessary only for insurers, which serves only to protect their interests. However, in the application of a franchise, if desired, you can find many advantages for policyholders.

Firstly, this is the same lower tariff and choice. Usually, the policyholder is offered a certain tariff and deductible grid, from which he can choose the option that suits him best.

If all insurance contracts were concluded without a deductible, they would cost significantly more!

Secondly, upon receiving the minimum damage included in the franchise, the insured is freed from the need to go through a complicated (for our conditions) procedure for collecting and submitting documents for reimbursement, wasting his time and effort on this.

From all this we can conclude the following:

Receiving compensation for small losses, in fact, is unprofitable for either the insurer or the insured. Therefore, a franchise was invented, which is successfully used in the world insurance practice.

Now you know what a deductible is in insurance, a conditional and unconditional deductible, what other types of deductibles exist, and how this tool is used in practice. Be vigilant when concluding insurance contracts and carefully study all the points regarding the franchise. By the way, in some cases they may not be specified in the contract/policy itself, but in certain insurance rules with which the client is allegedly familiar, as evidenced by his signature on the contract.

And that's all I have for today. Subscribe to site updates by mail and in social networks and improve your financial literacy. See you soon!

Insurance is an integral part of the life of every person in modern society. We strive to insure property, life and loved ones as profitably as possible. Insurance can be compulsory and voluntary.

Every person who encounters this topic for the first time immediately has a lot of questions: which company is best to contact? What type of insurance to choose? For how long? In order to make the right decision for yourself, you should get at least a primary idea of ​​what the insurance system is, how it works and what is the benefit of using it.

The concept of insurance is inextricably linked with such a term as a deductible, which is that part of the insured's damage that is not subject to compensation by the insurance company in the event of an insured event. The policyholder voluntarily chooses insurance for himself with or without a deductible, and independently determines its size and type. The deductible amount can be set in a fixed form, or as a percentage of the total

In practice, there is a franchise unconditional and conditional. The latter provides for the payment of funds by the insurance company only if the damage caused exceeds the amount specified at the conclusion. For example, you decided on one hundred thousand rubles and chose a conditional franchise in the amount of 20 thousand rubles. If, in the event of an accident, the damage caused to the car is less than the specified amount, i.e. smaller size franchise, the insurance payment will not be made.

An unconditional deductible in insurance is a part of the damage caused as a result of an insured event that is not subject to compensation by the insurer. For example, you also insured your car for 100 thousand rubles, while choosing the type of unconditional deductible in the amount of 20 thousand rubles. In the event of an accident in the amount of up to 20 thousand rubles, the payment of funds will not be made. If the amount of damage caused is, for example, 21 thousand rubles, the insurance company will pay you an amount of 1 thousand rubles. An unconditional deductible, as a rule, operates regardless of the amount of damage caused.

At first glance, this payment system may seem very unprofitable. In fact, an unconditional deductible gives careful drivers who rarely get into minor traffic accidents a good opportunity to save on insurance purchases. The franchise is beneficial not only to the insurer, but also to the insurance company, since it allows you to significantly reduce many due to a decrease in the number of applications.

Of course, everyone decides which type to choose. An unconditional deductible is more beneficial for novice drivers with little driving experience, since, according to statistics, they are the most likely to get into minor traffic accidents.

It should be noted that the franchise in insurance is not particularly popular in our country, since most citizens simply do not understand the meaning of this term and all the benefits of using it. In addition, it is very difficult for Russians to come to terms with the idea that in some cases, even having paid, they will have to carry out car repairs at their own expense. In foreign countries, an unconditional deductible in insurance, on the contrary, is quite popular, since it allows you to significantly save the budget and maintain the status of the so-called break-even client even in the event of a minor accident.