Franchise in motor insurance.

The clients of almost all insurance companies have the opportunity to save money when buying a policy - you can take out insurance with a deductible.

The franchise can be regarded as an unconditional obligation on the part of ctrahovatelya offset by equity portion of the damage suffered in specified circumstances, and in the prescribed amount. Deductible in motor insurance can be conditional and unconditional.

In the case of the establishment of an insurance contract with an unconditional franchise insurance claim reimbursement in any case be calculated minus the size of the franchise. In some cases, due to the fact that the calculated amount of insurance indemnity is covered by franchise the insurance company does not pay anything at all policyholder.

For example: There is a deductible equal to 5% of the insured amount of 10 thousand dollars, that is $ 500. The loss in the accident was 1,200 dollars. Then the client will pay 1,200 - 500 = $ 700. Conditional franchise, in which case the insurer undertakes to compensate for its own account losses that do not exceed the deductible amount. In that case, if the amount of the loss exceeds this amount, the insurance company will compensate for the loss in full.

For example: an insurance contract set a conditional franchise to $ 500. All damages up to $ 500 will compensate the insured for its own account. In the event that the loss is $ 600, the insurance company will compensate all 600. Deductible amount can be determined as a percentage of the sum insured or the absolute (monetary) value. In some cases, a franchise can be set in the amount of interest and the amount of damage suffered.

Contracts with the franchise style according to customer almost all auto insurers. The most common contracts with an unconditional franchise. For a number of contracts the insurance company sets the mandatory deductible - for example, in contracts where the risk of minor injuries is high.

When buying a policy with a deductible you can really save money. From a certain amount of the excess, the cost of the insurance contract begins to decrease. In addition, the client saves time by not making out a lot of inquiries for a couple of scratches. And for those who feel sorry for money even for minor repairs have to drive more carefully. But this is rather a plus for car owners.