What is a franchise in auto insurance?

Today, auto insurance is the most popular type of insurance. Every year, draw up voluntary policy Casco thousands of Russians. Meanwhile, in addition to conventional insurance, almost every insurance company provides insurance with a deductible. What is a franchise in auto insurance? This commitment is given to the insured, pay a portion of the damage suffered at their own expense. That is the contract of comprehensive insurance with a deductible driver certainly agrees that he can not get 100% compensation. It all depends on the insured and the type of franchise. To date, share conditional and unconditional franchise. Deductible - a franchise that whenever an insured is not covered completely, because calculated as the difference between the amount of loss and set the size of the franchise. In this franchise can be set in absolute or relative terms to the sum insured for loss sustained or evaluation of one object of insurance. For example, your insurance case was estimated at 10 thousand rubles. And the amount agreed upon with the insurer deductible is 5 thousand rubles. In this case, the insurance company will pay you only a 05/10 = 5 thousand rubles., And the remaining 5 thousand rubles. will have to pay out of pocket. With regard to a conditional franchise, it provides for compensation in full, but only if the damage exceeded the deductible. Otherwise, the costs will fall on the shoulders of the policyholder. For example, if the contract conditional franchise is $ 500, and a loss in the accident was $ 300, the insured receives nothing, and vice versa. In Russia, car owners often prefer to use the deductible, even though the franchise, as such, in our country is not stuck. According to statistics, only about 2-10% of domestic car owners insure their cars this way. It is worth noting that in Europe there was the opposite situation. For example, in Britain, only 1-2 of 10 insurance companies advise you to insure a car without a franchise. However, the Europeans are known to differ in their law-abiding on the road can not be said about the Russian "cab". Still, the franchise is a good way of insurance, to significantly reduce the cost of comprehensive insurance. True, this applies only to a distinct category of people. For example, franchising is for those who are used to drive carefully, is an experienced driver, and rarely becomes a party to various accidents. And here, "teapot" and all other newcomers, by contrast, should refrain from this kind of insurance, and more practice on the road.