Nowadays, it is simply impossible to foresee an accident that can happen to your car. Therefore, in recent years, vehicle insurance services have been in rather high demand. Insurance companies are simply full of variety, they open their doors to any potential customers, because every year people buy more and more cars.
When receiving the services of an insurance company in the event of a contract, each driver or car owner receives guarantees for damages in different situations. At the same time, each insurance company tries to offer the most favorable conditions when concluding an insurance contract with it. The advantage in this case is the emergence in the auto insurance market of such a thing as a franchise.
In simple terms, a car insurance deductible is an amount of money that, under any conditions, is not paid out of losses incurred by an insurance company. As a rule, it has its own expression and definition as a percentage, limited to a certain amount established by the insurance company. Accordingly, the lower the percentage or the deductible, the greater the amount of insurance in the future.
A deductible for insurance is the release of the insurer itself from compensating a certain part of the losses to the one who is insured, upon concluding the necessary package of contractual documents. But what is a deductible in auto insurance, we will explain below.
It is provided that a deductible in auto insurance means that the insurer does not pay the minimum damage in the event of an insured event, and the amount of the cost of the franchise itself directly depends and is determined taking into account the amount of the cost of the vehicle itself.
The amount of payments of this kind of franchise can range from 0% to 5%. The size is determined by the value of the car. Here, the choice of the size of the interest rate is also important, which is determined by the insured. It follows from this that the higher the deductible when applying for car insurance, the cheaper the insurance is. Even such cases are allowed that all expenses for damages are borne by the franchise, and the company with which the insurance contract is concluded does not reimburse anything. This is exactly what is due to the large percentage of payment when registering this kind of franchise.
In this type of insurance, there are several types of franchises, namely OSAGO and CASCO.
The concept of CASCO is very common. This is one of the types of insurance for a car, according to which it is insured in case of theft or damage. The most common case is that the drivers of vehicles themselves buy this type of insurance, because it can cover all the damage that may be caused by the owner of the car.
Franchise in a car (or OSAGO) is a compulsory insurance of civil liability of vehicle owners. This is insurance, in which the object of insurance includes precisely the interests that are associated with the possible risk of the owner of a particular vehicle under certain circumstances. They appear as a result of possible damage to the life, health or property of a person who appeared due to the vehicle. Such a concept, first of all, appeared as a kind of social warning in order to obtain guarantees for compensation for damage caused in a given situation with the participation of a vehicle.
CASCO is one of the types of insurance, according to which a vehicle is insured in case of theft or damage. The most common case is the fact that vehicle drivers themselves buy this type of insurance, because it can cover all the damage that can be caused by the owner of the car.
The main factor is that in any case, all franchise agreements are concluded precisely by the voluntary decision of the client - the owner of the vehicle. Almost all insurance companies use the conclusion of such contracts. They can also determine whether a vehicle is at high risk of external or other damage. If such a fact is revealed, the franchise agreement is concluded without fail.
When applying for compulsory insurance of civil liability of vehicle owners, drawing up a franchise is an obligation of the insured. He will have to compensate at the expense of money the part of the damage determined in the contract, but in those cases and in the amount that is specifically determined by the percentage and contractual obligations. In this case, the amount of compensation for losses does not take into account the amount of the paid deductible under the insurance contract.
Currently, vehicle insurance services are in high demand. If you are interested in obtaining them, you should contact a reliable and well-established insurer. However, you should first carefully study the conditions for obtaining insurance. They should suit you in every way.