Discover all the advantages of comprehensive insurance with franchise
Comprehensive franchise insurance is basically an agreed upon commitment between the insurance company and the insured in which the first party charges a lower amount for the insurance contracted in exchange for the insured taking charge of an amount of money in case of accident or loss. That is to say, implies a considerable discount in the premium of the policy in exchange for assuming a fixed amount to pay in case of loss.
But, what amount are we talking about? It depends on the franchise that we have agreed with the insurer. Thus, the franchise itself is the amount of money that the insured allows the company to pay in case of loss, taking charge of the rest of the amount.
As we can see, this type of insurance allows us to secure our vehicle in a more efficient way economic than if we intend to do it with a full risk. The amount of the franchise is usually not very high , it is usually between 200 and 300 euros and the reduction of the fee with respect to a normal all-risk insurance is usually very generous. Even so, let's see all the small details and the fine print of this insurance modality:
Coverages that covers
Before hiring insurance with franchise, we must know in detail what are the covers that this one offers us, that usually they are the following ones:
- Fire
- Theft
- Moons break, both own and others
- Own damage (scratches, small bumps, etc.)
Both fires and robberies are usually very expensive damages, so hiring this insurance to protect us from both cases will compensate us economically. However, if we analyze the fourth point (own damages), it will not compensate us to contract this type of coverage with this insurance. Why? because taking into account that the franchise is usually about 300 euros, the cost of repairing these damages will never reach the amount we must face in the event of an accident.
This is the main Negative point of all-risk insurance with franchise, which after all, the own damages that are slight will be borne by the insured. , will protect us in the event of having a considerable accident and will cover the damages that, in the case of not having hired us, would have meant much more than 200 or 300 euros.
How do these insurances work? A franchise, an accident
This point is very important and we must have it clear before hiring an all-risk franchise. In the case of having an accident:
When it is not our fault:
Like insurance to third parties , a franchise insurance completely covers the damages that may suffer a third party, that is, your Civil Liability, but when applying the coverage of Own Damages is when the franchise applies . That is, in the case of suffering a loss, the franchise will be applied only when the accident has been our responsibility .When the fault is ours:
The franchise will be applied once per accident For example, if we take a hit in which the front and side of our car are affected, the insurer will only apply a franchise, since the damage of two zones is the result of a single accident. However,
In conclusion, if we hire a car insurance with a 300 euro deductible, all the repairs that must be made to the insured car in the event of an accident (and are covered by the policy), the driver must do the payment of the first 300 euros and the rest will be borne by the insurer . However, if the cost of the repair is less than the agreed franchise, we will pay the full amount and the company will not take over.
And the insurance price?
The higher it is the franchise, the lower the initial premium of the insurance policy for the car that is hired. Insurance companies offer their customers several franchise options so they can choose between them.
We will agree to the franchise with the company before hiring our insurance, which will offer us more than one possibility . As a general rule, we will offer an amount between 100 and 1,000 euros, but the most usual is to hire a franchise of between 200 and 300 euros. There are insurers and insurers, so not all of them will offer us the possibility of choosing the amount of franchise, which will always depend on the value of the vehicle we want to insure.
How do I know if I should hire a franchise?
It is a very subjective decision, it depends on many things and circumstances (driving experience, new car, driver's history with accidents, value of the vehicle, own economy, etc). One thing is clear: it all depends if we want to take the risk .
It is very important to make an analysis of conscience and ask ourselves a questionnaire to know what decision to take before securing our vehicle. Let's see below the factors that will allow us to decide if we opt for insurance or another:
New or second-hand car?
If the insured vehicle is new and, in addition, has a high value, the all-risk franchise will be a good option to hire it, as any repair almost always It will be higher than if it were an old car.
However, if it is a second-hand car, we want to take the risk and not pay for this type of insurance. because the price is higher than a third party, we could afford it, since it is a car that, generally, does not have the same economic value as a new vehicle.
When to change to a third party?
The factors that should influence the final decision to change from an all-risk insurance to a third party have more than see with age, type and value of the vehicle, the use made of it, the accident history, , etc.If we have a car more than six or eight years old, the idea of hiring a full-risk insurance is no longer of interest, as the value of the vehicle will have depreciated so much that the compensation for a loss will be less than we expected.
What do you use for your car?
If you use it to go from home to work , for leisure, only weekends ... If for example, we take the car only the weekends , we will get a premium lower than the usual insurance contracted , since the risk of suffering an accident is less due to occasional use. So here we will decide if we rent hire this insurance or opt for a third party.
Novice or experienced driver?
If you're a novel driver and it's your first car, to hire this insurance It would NOT be the best option . The first car is the first contact and in a few cases it gets rid of some blow, scratch and even sinister: the more light blows, the more repairs the insured must take and this, in the long run, does not count.
How many parts do you usually give per year?
If your accident history > on the road is high in number and indicates that you do several parts a year, rethink hiring this insurance. Like the previous point, those drivers who suffer frequent mishaps, even if they are mild, are not the most suitable to hire a full-risk franchise, because even if they pay less for the insurance they end up paying more in repair costs.
Where do you usually park the car?
Depending on where we park our vehicle, we should consider hiring this insurance. Let's put ourselves in a position: we r oban of the car . In this case it is a good idea to hire a franchise insurance, especially if the car is new, since the insurer will take care of the cost.
All these questions will help us to have a first idea of whether or not we should hire this insurance, as long as we answer them with sincerity.
¡Ojo! Agree on a franchise that you can pay at any time
If we decide on the franchise option, we must consider that it is an amount that we can assume at any time in case of an accident. If we agree to a franchise that is too high to pay much less in the premium of the policy, it may mean that at the time of the loss we are not able to assume the cost of the repair.
So, be careful with the amount franqicia that we agree with the company if we do not want to take a surprise at the time of having an accident.
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