Franchise insurance is a very good option if you want to hire cheap insurance

July 06 , 2023 // Specialty : Liability derived from the use of motor vehicles

Published in Diario Motor

If you have recently bought a car, you will know that one of the things you must do to be able to drive with your car is to take out insurance. If you are new to the world of insurance, it is normal for you to have many doubts, since there are different types and each one can offer different coverage or guarantees. In other articles we have talked about all-risk insurance and third-party insurance in order to be a little clearer about what these types of insurance are.

In this article we will talk about another modality called “excess insurance“, so you will know if it is convenient for you to add it to your insurance.

What is franchise insurance?
Franchise insurance is a modality in which the insured must pay part of the damage caused in the event of an accident, the other part will be paid by the insurer. The amount that the insured must pay is agreed with the insurer, normally they are amounts of 150 and 1200 euros. Some insurers do not allow you to select the franchise that you want, but it depends on the value of the vehicle that you have insured.

If the damages cost less than the fixed amount, it will be the insured who will pay the total amount.

To see it more clearly, let's imagine that the amount we have agreed with the insurer is 400 euros. Those 400 euros are the franchise. If we have an accident in which the damages are 1000 euros, we would have to pay the 400 euros franchise and the remaining 600 euros will be paid by the insurer.

If, on the contrary, the damages were 200 euros, we would have to pay the 200 euros, without the help of the insurer.

This will be the case every time a part is given to the insurance, that is, whenever we have an accident, we will have to pay the agreed franchise.