Deductible in insurance

The insurance deductible is the predetermined insurance contracts is the amount that is not refundable by the insurance company when the insured event. Simply put, this the amount you underpaid your insurer in the calculations.

Let's say you insured the car and started the franchise in 10 thousand roubles. If you slightly damage and repairs will cost, say, 5 thousand, you will spend it on their own, without resorting to the insurance company. If your the loss amounted to 100 thousand rubles, the insurer less the excess will pay you 90 thousand

It would seem that what is needed then the insurance excess? In fact, it is beneficial for the client, and the insurance company.

First, by accepting the franchise, the customer receives a considerable discount on the insurance policy. These savings amount may be comparable to the size of the franchise, and it is quite possible to postpone minor repairs.

Second, you don't need to waste your time contacting the insurance company about minor repairs. No need to fill out a stack of papers can also be attributed to the pluses.

Obvious advantages for the insurance company. This is mainly the release of staff from maintenance of small insurance claims, processing of which requires not less resources, than of a serious accident.

Overseas franchise is prescribed in most insurance contracts, and in Russia it is not yet popular.

Conditional and unconditional franchise

Conditional deductible applied if the damages less the deductible. For example, if you insure your car for 1 million rubles, and have established a franchise in the amount of 10 thousand rubles, while the damage in 9 thousand you will not get anything, and the damage of 10 thousand 100 rubles you will receive the entire amount.

In practice, customers are trying every hook and crook to increase the amount of damage to get insurance, so a conditional franchise in our country spread is not very wide.

Deductible deducted from the amount of insurance compensation in all cases. In the example with the same car if damage in 9 thousand you will not get anything in the damage of 10 thousand 100 you will receive 100, and with the loss of 100 thousand you will get 90 thousand rubles.