What is a CASCO franchise? Franchise at CASCO: reviews, conditions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Every motorist at least once in his life faced with the need to buy a policy for a vehicle (TC). But it is one thing to draw up OSAGO, that is, to insure damage caused to the property and he alth of third parties. Such policies are most often purchased for the period of technical inspection and do not delve into the nuances of the contract. And it is completely different - to acquire CASCO. The contribution is large, the number of risks is huge, so the insurer also offers to issue a franchise. In short, the essence of this term sounds like this: in the event of an accident, the client will still have to spend money on restoring the car. But how much and under what conditions is another question. Read more about what a CASCO franchise is, what are the features of its formation, read on.

Basic concepts

CASCO - car insurance against theft, theft or damage caused by third parties. That is why banks require its presence when applying for a car loan. In the transaction, the vehicle itself is insured, regardless of who caused the damage.

When issuing a policy, an insurance agent will definitely offer to issue a franchise, telling about all the benefits of the deal and, of course, about the discount that the client will receive. But a decrease in the initial cost may come out sideways in the future. Franchise - a sum of money that will not be paid to the client upon the occurrence of an insured event. It can be expressed as a percentage of the amount under the contract or in monetary units. Its size is fixed in advance in the contract. That is, it cannot be attributed to unforeseen costs. This is what a CASCO franchise is in a simplified form.

Options

The non-deductible deductible in CASCO insurance means that all payments that exceed its amount will be fully compensated by the insurance company (IC). But if the cost of restoring the car is small, then the client will have to compensate for the damage on their own. Therefore, this franchise is called "conditional".

Example

The franchise is 5 thousand rubles. If the damage is estimated at 4.5 thousand rubles, then the client will have to pay this money on his own. But if 7 thousand rubles are required to restore the vehicle, then the company will cover the losses in full.

Unconditional deductible in CASCO insurance is deducted from the amount of compensation. That is, in any insured event, the client will have to pay part of the costs out of his own pocket. Under the conditions of the previous example, this means that with a loss of 7 thousand rubles, a person will receive only: 7 - 5 \u003d 2 thousand rubles. But if the expert assessment is 4.5 thousand rubles, then all costs to the client will have to be compensatedyourself.

There are other types of franchises that are provided for a certain category of customers, but these two are most often used. Unconditional is more profitable, since in the case of deductible the amount of costs can be artificially increased by the insured person.

Benefits

There is no definite answer to the question of whether to purchase a policy with a franchise. Much here depends on the specific situation, the driving experience of the driver, his financial capabilities. Casco insurance with a deductible can be useful if:

Customer wants to save money on buying a policy. When any franchise is included in the contract, the cost of the transaction will noticeably decrease. This is especially true for drivers without driving experience. In such cases, the SC in the calculations use increased coefficients. The larger the franchise, the cheaper the policy. At the same time, the client needs to be prepared for the fact that he will receive compensation from the company only in case of significant damage to the car. He will have to fix minor scratches at his own expense

Man wants to save time. In the event of an insured event, the company must provide a whole package of documents: from a photocopy of the passport to certificates from the traffic police. Well, if these documents were issued immediately at the scene. But often clients have to go for documents for examination. If the amount of damage is small, then it makes sense to compensate for it yourself. This can save you time and money

SK is also beneficial to issue CASCO with a franchise. Reviewscompany employees confirm this. Regardless of the amount of damage, the bureaucratic procedure for issuing compensation is always the same. But the costs can significantly exceed the amount of compensation. Therefore, agents are trying to sell deductible policies

Who should buy a policy?

Having de alt with what a franchise is with CASCO, we turn to the question of who should conclude such an agreement. So, a potential buyer must meet several parameters:

1. The availability of free cash. Minor damages to the client will have to compensate themselves. But the insured event may not occur. Then the savings on the purchase of the policy will be justified.
2. Long history of accident-free driving. If a person drives a vehicle with high quality and feels like a fish in water, then a CASCO franchise will help save the budget and at the same time maintain a sense of security, as the car will be protected from theft or complete destruction.
3. The desire to issue a policy for only one type of risk. Full CASCO includes protection against damage and theft. But if a person is confident in his driving skills and will not pay attention to minor scratches, then it is worth buying a policy with a large deductible (from 7%) for the “Damage” risk. "Theft" is rarely offered to customers separately. Most often it comes with other services. But if the client has been served by the company for a long time, then a large CASCO franchise can be a profitable purchase.

Exceptions to the rule

According to statisticsinexperienced drivers are more likely to get into accidents and turn to the company for compensation. For them, saving on the policy turns into significant costs for restoring the car. It is better to immediately buy insurance with increased coefficients. The same applies to drivers who have obtained a license after the age of 40.

Recommendations

So who benefits from an unconditional CASCO franchise? Experienced drivers who do not dwell on minor scratches and are ready to compensate for them at their own expense. Such clients should buy a policy with a deductible within 0.5-2% of the cost of the car.

Drivers with a long history of accident-free driving can enter into an agreement under which only the high costs of restoring the vehicle will be compensated. They usually have a deductible of 7%.

It is better for beginners to forget about such a thing as "franchise in CASCO", which means - to buy a policy with increased coefficients right away. Although it will not work to save money, the psychological factor will still work: the driver will operate the vehicle more carefully.

Nuance

It is still possible to receive a full refund, even if the client has issued a CASCO with a franchise. Reviews of drivers on the forums confirm this. But this trick will succeed only if you are not the culprit of the accident. In Russia, there are two types of policies - OSAGO and CASCO. The first compensates for the damage caused to third parties, and the second - the policyholder's vehicle. So you can get part of the reimbursement within the franchise under the CMTPL policy of the culprit of the accident. But in this case, you will have to collect the full packagedocuments that are necessary for registration of an insured event. If part of the costs is compensated by CASCO, and the documents have already been transferred to the "native" IC, then copies of certificates can be requested from the traffic police officers. The most important thing is to formalize the procedure until the claims of the insurance company, which issued CASCO, to the insurer of the culprit are presented. Otherwise, the refund will be reduced by the amount of wear and tear on the parts.

Car loan

When providing loan funds for the purchase of a vehicle, the bank may require additional guarantees from the client. In this case, it will be CASCO. When buying new cars, registration of this service is a prerequisite for the transaction. Banks rarely enter into contracts without insurance. Most often this happens during promotions.

When buying a car with mileage, CASCO can not be issued. Some banks agree to such a scheme, but at the same time they greatly inflate the rates. The credit institution is interested in the return of funds under any circumstances. But if the car was stolen and there is no insurance, then the client will have to compensate for the costs, however, as well as to restore the car after an accident.

Problem Solving

Drivers advise in this case to insure the car for a year (if the bank allows it) and experimentally determine whether you need a policy at all. If this is not possible, then proceed according to the standard program. Experienced drivers can purchase CASCO with a deductible for a car loan, which will insure only theft or completedestruction. The rest should buy a policy with a small amount of discount.

You can reduce the cost of the policy in other ways:

• Reduce the repayment period from 5 to 2 years.
• Insuring the car only for the amount of the body of the loan, excluding the advance payment. Then the return of the CASCO franchise will be paid in the same proportion:

(Payout - deductible)(Initial cost of car - advance) / 100.

Compensation processing

Most of the negative feedback about companies is related to a misunderstanding by customers of the essence of all procedures and concepts, in particular, what is a franchise under CASCO. But if you carefully read the contract and understand the details of the transaction before signing the papers, then problems can be avoided. Let's consider this using the example of the procedure for processing a payment.

Compensation may be reduced by the following deductions: deductible, depreciation. All of them are formed under the terms of the contract. By signing the papers, the client agrees and confirms that he is familiar with the details of the transaction.

Example

A person insured a vehicle for the amount of 500 thousand rubles. The contract stipulates a deductible deductible of 1.5% in the event of an accident. Loss amount: 50 thousand rubles. The first thing the amount of the payment will be adjusted for is the deductible:

50,000(1-0, 015)=RUB 49,250

Next comes the wear and tear of the car. The amount of depreciation of the vehicle is deducted from the cost of spare parts that cannot be restored. The longer the car is used, the greater the percentage of these costs will be.

Coordination of the cost of repairs with the service station - this item is clearly regulated by the contract. If it states that the service station is chosen by the Insured, then the amount of compensation will be agreed upon by the representative of the company and the service station. But in this case, the client cannot be sure of the quality of the services provided to him. Therefore, at the stage of signing the documents, you should make sure that the phrase “STO under warranty” is included in the contract.

Conclusion

Deductible is the amount of expenses that, in the event of an insured event, will not be compensated by the insurance company. The presence of this element in the contract reduces the initial cost of the policy. But for inexperienced drivers, this savings can then turn sideways. People who feel insecure behind the wheel are more likely to get into an accident. Experts advise such clients to immediately purchase a policy with increased coefficients and terrorize the insurance company for every scratch. A franchise can save money only for experienced drivers.