When insuring his life, real estate or car, any person is faced with three main aspects of any insurance contract: insurance premium and franchise. And if the first two elements are clear enough even for an insured who does not have special knowledge in this area, the franchise is often unclear to the client.

Nevertheless, this issue should be dealt with especially carefully, since the amount of damage that a person incurs, as well as the cost of insurance itself, depends on the franchise.

The essence of the franchise and its types

Franchise in insurance is explained in different ways. In the very simple form deductible can be called that part of the damage in the event of an insured event, which the client will pay at his own expense. In other words, the franchise determines the degree of participation of the insured in the risk.

The deductible can be valued as a specific amount or as a percentage of the cost of insurance. For example, if the usual deductible in the insurance contract is set at 5%, then upon the occurrence of an insured event estimated at 100,000 rubles, the insurance company will pay 95,000, and the client himself will provide another 5,000. However, this is only the case in the most general case. In fact, it all depends on the type of franchise with which the insurer works.

Unconditional franchise

The unconditional franchise is rightfully considered the most common type. It assumes that the insurance contract prescribes the amount of damage that the insured is ready to take on. If, upon the occurrence of an insured event, the damage is somewhat less than this amount, then the insurance company does not pay anything at all.

For example, a citizen insured his car in the amount of 1,000,000 rubles. The franchise under the contract was 4% or 40,000 rubles. If the car gets in an accident small scratches, and the restoration will cost the car owner 30,000 rubles, the insurance company does not pay anything: the car will be repaired at the expense of the insured himself. If the damage turns out to be large, for example, 100,000 rubles, then the auto insured will contribute 40,000 rubles to the restoration, and the insurer will contribute the remaining 60,000.

Conditional franchise

Conditional franchise has a slightly different behavior. As in the previous case, the insurance contract immediately prescribes what part of the damage the insured is ready to take on. If, upon the occurrence of an insured event, the damage does not exceed the amount of the deductible, then the entire risk will be assumed by the insured. If the damage turns out to be more than the deductible, the insurer will cover all the losses himself without the participation of the client.

For example, if the cost country house amounted to 1,500,000 rubles, and the deductible - 3%, then the insured takes on 57,000 rubles of damage. As a result, if the property is damaged by 50,000 rubles, then compensation for damage is carried out at the expense of the insured's own funds. If the losses amount to 100,000 rubles, that entire amount will be covered by the insurance company.

Temporary franchise

This type of deductible is measured in units of time and assumes that if an insured event occurs earlier than the time specified in the contract, no insurance compensation will be paid. This variant of the franchise is used by young insurance companies, which first accumulate a certain capital at the expense of the insured's deductions and only then use it to cover losses.

Dynamic Franchise

It is used extremely rarely due to the difficulties in constantly recalculating the sums insured. The essence of this deductible is that, depending on what kind of insured event it is, the amount of the deductible changes. For example, upon the occurrence of the first insured event, the deductible may be 0%, upon the second - 3%, upon the third - 5%, etc. Most often applied to those subjects who often find themselves in risky situations.

Benefits of a franchise for the insured

It should not be thought that a deductible in insurance is a trick of insurers that allows them not to pay insurance premiums due to a client. In reality, the franchise is fraught with a lot good points for clients of the insurance company, including:

It should be noted that in 2014, the concept of a franchise, which had been missing until that time, appeared in the Russian insurance legislation, which indicates the presence of legal protection of the interests of the insured.

Thus, a deductible in insurance involves the insured in the process of covering damage, which not only reduces the amount of insurance payments, but also makes the client more responsible. The presence of a franchise in the insurance contract is beneficial for both the insurance company and its customers, since for the former it somewhat reduces the amount of payments, and for the latter it saves money in the event that an accident never occurs.

A franchise is a special option for insurance, which allows you to reduce the cost of an insurance contract by introducing additional factors into it.

In this article, you will find out whether it is worth using franchises. Insurance companies offer their clients different conditions and services.

Sometimes it is not clear whether they really want to make the service more comfortable, or they simply find new veiled ways to “cut down money”.

It is not surprising that many people are distrustful of such an insurance phenomenon as a franchise. In fact, a franchise can be both good and bad.

But everything depends not on the insurance company, but on the client himself. By reading this article, you will full information about franchises in the insurance business.

We will talk about what franchises are, consider their advantages and disadvantages. This will help you choose the best insurance option and avoid additional costs.

Definition

An insurance franchise is special condition contract, which provides for the release of the insurer from the payment of losses to the client of a specific amount.

This size is called the franchise size. To make it clearer, consider the main characteristics of the franchise:

• the franchise obliges the client to reimburse himself minor damage in an accident that costs less than the deductible. In return, the insurance company reduces the cost of the policy for the client.
• the franchise can be an incentive for breaking even (careful) driving
• under the terms of the franchise, for the amount of the CASCO policy, you can insure not only the car, but also some other property
• the client can really benefit from the franchise if he avoids the occurrence of an insured event

The benefit of the franchise is in the insurance premium (the so-called reduction in the cost of insurance). If a person chooses a franchise, and then drives carefully and does not get into an accident, then in this way he saves a significant amount of money.

Different companies have different franchise conditions. Before signing an insurance contract, you need to carefully study all the details, otherwise insurance may not be profitable, but unprofitable

Kinds

In modern insurance theory, the following types of franchises are described:

• conditional
• unconditional
• preferential
• recourse (only in OSAGO)
• dynamic (only in CASCO)
• obligatory

You need to pay attention only to conditional and unconditional franchises. Other types rarely justify themselves, and you should not resort to them.

A conditional franchise always has a clear size. For example, the insurer and the client have agreed that the deductible is 10,000 rubles.

If losses due to an insured event amount to less than 10,000 rubles, then the client pays them himself. If the losses amount to more (for example, 15,000), then the insurer pays them. In this case, the client does not have to pay anything.

The conditional franchise is very rarely used in CASCO. The fact is that in case of minor accidents, many car owners try to artificially increase the amount of damage in order to obtain compensation from the insurance company.

Such fraud has led insurers to stop offering conditional deductibles to customers, although ideally it is the most beneficial for both the insurance company and its client.

Peculiarities

An unconditional franchise is sometimes called a deductible. Its essence is the presence of a certain amount, which the client always reimburses on his own.

This amount is deducted from the total amount of the insurance payment. Consider an unconditional franchise with an example.

Let's say the franchise is $10,000. The client had an insured event, and the losses amounted to less than 10,000.

As a result, the insurance company owes nothing to the client. Some time later, another insured event occurred, but with a loss of 50,000 rubles. Of this amount, the insurance company reimburses 40,000, and the remaining 10,000 remains with the client.

The size of the unconditional deductible can be expressed not in a clear amount, but as a percentage. For example, under the terms of the contract, the company always pays 80% of the amount of losses. This percentage does not change, whatever the damage

Which one to choose?

The car owner has the right to choose any franchise at his discretion or refuse it altogether. Remember that the size of the insurance premium directly depends on the size of the deductible.

If the deductible is 1% of the sum insured, then you can save about 10% of the cost of insurance. To save 20%, you will have to conclude a franchise already for 7-8%, and this does not always make sense.

Tips for new drivers:

1. Choose an unconditional franchise. Without driving experience, you will often get into minor accidents, the losses for which are unlikely to exceed the deductible. A conditional franchise will only hurt you
2. Choose a very low deductible (maximum 0.5% of the sum insured). This is the only way you can cover the losses in your minor accidents at the expense of the insurance premium.

Even if you are an experienced driver, in most cases it is still worth choosing an unconditional franchise.

1. Firstly, many insurers are suspicious of the owners of the conditional model, knowing about the frequent cases of fraud.
2. Secondly, with an unconditional deductible, it is easier to calculate, so you are less likely to make a mistake when setting the size.

You don't have to give up the franchise. Instead, study its features and find the optimal balance that will save you money.

What could be the catch?

Insurance companies are not patrons. They are always looking to make money.

Therefore, along with clients who benefit from a franchise, there are others - those for whom it works at a loss.

Anti-insurance - standard unit

Franchise in insurance- Today, a fairly common phenomenon and is used by many insurance companies. As a condition of the contract insurance franchise usually negotiated at the stage of signing documents.

CASCO with a 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 01/21/2014 the corresponding changes were made - now the franchise in insurance 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, not subject to reimbursement by the insurer to the insured and set either as a fixed amount or as a percentage of the sum insured.

In other words, without insurance franchises the contract can be concluded, as it is not a prerequisite. Speaking more plain language, then the deductible is the amount that, upon the occurrence of an insured event, the client (insured) must compensate independently.

What is a franchise used for?

So, what is a franchise at CASCO? You decide to insure your car under CASCO and choose the insurance option in 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 is 2,000 rubles. But the insurance company won't pay you anything. Shocking?

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

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

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

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

But sometimes the franchise is not needed by the insurers themselves. 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 minor damage yourself, even if you save on insurance premiums. Although in this case everything will depend on the conditions that the insurer will offer you.

You should also pay attention to what additional services your insurance provides. 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 franchise amount, the tow truck will not come to you for free.

Types of franchise in insurance

A franchise can be of 2 types:

1. Conditional. insurer in this case completely exempt from payments if they do not exceed the amount due to the deductible. But if we are talking about a larger amount than the deductible, then the insurer is obliged to pay this difference.

   Example: the car is insured for 4,000,000, the deductible is 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 by the insured; but if the amount of damage is 350,000, then the entire amount of damage is paid to the insured, regardless of the difference between the damage and the amount of the deductible.

2. 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: the car is insured for 4,000,000 with a deductible of 5% of the amount of payments. That is, when calculating, we find out that the deductible will be 200,000. An accident occurs, as a result of which the insured was harmed by 150,000 rubles. The amount is less than the deductible, respectively, should be covered by the insured. 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 meet the so-called dynamic franchise. The meaning of this subspecies is that the size of the franchise (percentage of payments) may vary depending on various situations; for example, on the number of insured events, etc. That is, with the first insured event, the deductible is not paid, with the second - 5% of the sum insured, etc.

It is impossible to ignore and relatively the new kind franchises in insurance temporary franchise. The deductible is not paid if the period of occurrence of circumstances that may lead to an insured event is less than that specified in the contract.

Benefits for the client when using a franchise in insurance

In fact, if you take a closer look at the institution of a franchise in insurance, you can highlight the obvious advantages for the insured:

• Renewal discount if you were not reimbursed for losses at the time of the old insurance policy.
• Saving time.
• If we are talking about, for example, a motor third party 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 insured events, then you contact the company less and get less negative experience.
• Even if the insured event has not occurred, you do not "lose" the entire amount of insurance; a certain amount is returned to you in the form of a discount on the next insurance.
• Insurance premium savings. The following relationship is observed: the higher the deductible, the lower the insurance premium paid by the insured. In this context, the franchise will be beneficial for those who enter into a collateral insurance contract. It is beneficial for the bank that your property be insured for as large a sum as possible, and you, in turn, will benefit by paying less for the insurance premium.

Nuances of a 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 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 in small print!

In addition, specify immediately on what conditions the franchise will be paid and what documents are required for processing and receiving payments in this case. It often happens that at the scene of an accident were not issued Required documents, and then it's too late to wish it, but, despite this, the insurer does not pay out.

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

The franchise has not yet "taken root" properly in the practice of insurance, so many insurers are wary or generally opposed to the inclusion given condition into a contract. But it's up to you: what is more profitable - to get a discount on the insurance premium or to receive payments in any insurance cases, regardless of the amount of damage.

Aimed at protecting the property interests of people from certain dangers. Insurance activities include comprehensive insurance protection, consisting of the insurance itself, co-insurance and reinsurance in the broadest sense of the term. An obligatory condition for the functioning of insurance organizations is the licensing of insurance activities. Licenses that give the right to carry out insurance are the guarantor of the solvency of the insurance company at the expense of the necessary insurance reserves formed by it for the implementation of one or another type of insurance for future insurance payments. At present, a mechanism is functioning in Russia that includes licensing of insurance activities, registration of organizations involved in insurance and control over their activities, carried out All this in a complex ensures the protection of the interests of policyholders. Licensing of insurance activities in Russia does not have any restrictions on the duration of its validity, unless it is specifically provided for by Rosstrakhnadzor at the time of issuing a specific license. Both voluntary and compulsory types of insurance are licensed.

Insurance, like many business areas, includes a number of specialized concepts and terms. The insurance activity of insurers and policyholders necessarily includes a franchise, since it goes through each contract and is negotiated in each product from the insurance line.

What is a franchise in insurance?

In French, a franchise is a privilege. A deductible in insurance is a non-reimbursable part of the damage. It is calculated as a percentage in relation to In other words, if an insured event occurs, then, when calculating the insurance indemnity, the deductible amount will be deducted from the total payment. Russians, as a rule, try to refuse the franchise, unlike foreign clients of insurance companies. It seems to us superfluous and unnecessary, but if you think about it, everything is quite different. Franchise in insurance provides an opportunity to save money. small size franchise provides more full coverage damage, but high insurance rate; larger size deductibles - less full damage coverage, but reduces the cost of the insurance policy.

There are two types of insurance franchise: conditional and unconditional.

With a conditional or non-deductible deductible, you will only be reimbursed for damage if it exceeds the amount of the deductible, otherwise, you will not be able to receive payments from the insurance company. For example, albeit somewhat trite, but just for perception, you insured shoes for the amount of 1,000 rubles with a conditional 1% deductible, which will be 100 rubles, and a little later you lost the heel. The amount of the repair will be significantly less than the deductible, so there will be no refund. And in the event that you did not lose the heel, but tore off the sole completely, then the cost of the repair will exceed the deductible amount and the insurance company will fully compensate you for the damage. Since reimbursement is made under certain conditions, the franchise has acquired the name "conditional".

The unconditional or deductible deductible is deducted from the amount of payments for always, without any conditions. Therefore, projecting it onto the previously given example, we see that if the damage is insignificant, there will be no payments from the insurance company, and if the damage is significant, the deductible will always be deducted from the actual amount payable for damage, i.e. in our case - 100 rubles.

If we evaluate the situation objectively, we see that the deductible in insurance is beneficial for us. It is no less beneficial for the insurance organizations themselves, since they also have a real opportunity to save money.

Services related to property insurance 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

Movable and real estate citizens and organizations.

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 works, manuscripts, models, media, weapons, antiques (subject to a separate type of insurance), etc.

Legal entities can insure all types of transport, various cargoes and 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 the client himself will pay 5,000 rubles. This calculation applies to the 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:

• savings 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 on insurance payments minimum amount)
• saving time (if the damage from the insured event is minimal, you do not need to spend time interacting with the company, filling out unnecessary paperwork);
• if damage never occurs, there will be no need to use excess funds to pay 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, because the:

• 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 the following video story:

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 full policy CASCO, 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:

• deductible is mandatory if the risk total destruction 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 well known, 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 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.

Franchise in insurance services is convenient and economical option, because it leads to a decrease total cost insurance, increases the level of confidence of the insured to 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 of health insurance when traveling abroad, see this video: