Unconditional franchise in voluntary insurance, its advantages

Insurance is an integral part of every human being's life in modern society. We strive to insure property, life and loved ones as profitable as possible. Insurance can be compulsory and voluntary.

Every person who first collides with this topic immediately raises many questions: which company is best to contact? What kind of insurance to choose? For how long? In order to make the right decision for yourself, you should get at least an initial idea of what the insurance system is, how it works, and what the benefits of using it are.

The concept of insurance is inextricably linked with a term such as a franchise representing that part of the insured's damage that is not recoverable from the insurance company in the event of an insured event. The policyholder voluntarily chooses insurance with a franchise, or without it, and independently determines its size and variety. The amount of the deductible can be fixed in fixed form, or as a percentage of the total insurance amount.

In practice, there is a franchise unconditional and conditional. The latter provides for the payment of cash by an insurance company only if the damage caused exceeds the amount specified in the conclusion of the insurance contract . For example, you decided to insure the car for one hundred thousand rubles and chose a conditional franchise in the amount of 20 thousand rubles. If in the event of an accident the damage caused to the car will be less than the specified amount, i.е. Less franchise size, insurance payment will not be implemented.

Unconditional deductible in insurance Represents a part of the damage caused as a result of the occurrence of an insured event that can not be recovered by the insurer. For example, you also insured your car for 100 thousand rubles, while choosing the type of unconditional franchise in the amount of 20 thousand rubles. In the event of an accident for up to 20 thousand rubles, no payment will be made. If the amount of damage is, for example, 21 thousand rubles, the insurance company will pay you an amount of 1 thousand rubles. Unconditional deductible Acts, as a rule, regardless of the amount of damage caused.

At first glance, this system of payments may seem very unprofitable. In fact, an unconditional franchise gives neat drivers who rarely fall into small road accidents, a good opportunity to save on buying insurance. The franchise is beneficial not only to the insurer, but also to the insurance company, since it allows to significantly reduce many operating expenses due to the decrease in the number of appeals.

Of course, everyone decides which species to choose. An unconditional franchise is more beneficial for novice drivers with a small driving experience, because according to statistics, they are most often involved in minor traffic accidents.

It should be noted that the franchise in insurance is not very popular in our country, since most citizens simply do not understand the meaning of this term and all the benefits of its use. In addition, it is very difficult for Russians to come to terms with the idea that in some cases, even paying an insurance premium, they will have to repair the car at their own expense. In foreign countries, the unconditional franchise in insurance, on the contrary, is very popular, as it allows you to save a lot of budget and save the status of the so-called breakeven client even in the event of a minor accident.