What does have a duty free car insurance?

The car insurance contracts are a voluntary agreement for both parties. First, the user must pay a sum of money in advance to secure a car. And for another, the insurance company takes over if that risk leads to a loss by paying the compensation is stipulated in clauses.However, there is a mixed formula, which is a compromise between the parties involved, in which each party is responsible for a fraction of the obligation of the other. In other words, you pay a lower premium to its share of the insurance contract and the insurer pay compensation below that correspond.Thus was born the concept of franchising this mutual commitment, by which each party is responsible for a share of the obligation of the other party.


Definition
 

Franchising is an amount of money that the insured fails to collect the car insurance company for compensation that would apply as a result of an accident.It is applied to the first X euros of compensation and each and every one of the incidents that occur during the period of insurance.In return, the insurer lowers the total premium that you must pay for such insurance, a certain amount of money, it does not have to match the value of the franchise, sometimes being higher and others lower.What coverage is best to apply a franchise?
 

* Theft, fire and moons
Since the cost of procurement of these hedges is relatively low, apply a franchise they just lower the price and also if for example, a glass breaks or try to pick a lock to steal the car, you will be responsible for the almost repair entirety. Logically, if the car catches fire or stolen, it would be otherwise.

 

* Own damage
In this case, hire own damage coverage is very expensive relative to the other, so applying a franchise, in most cases it can be a very substantial reduction in the premium.Hiring or not a franchise for this coverage depends on the type of driver. While no one knows in advance whether an accident will be serious and if the driving record can help you make a decision. The driver will know whether or not parties have given their insurance, then according to this history can predict the risk of having an accident.When the accident history does not record incidents only, then it may be worth considering employing a franchise to reduce premiums. But if the driver usually give parties regularly, either to fix minor knocks or incidents of guilty is then reduced interest in insurance with excess.


What amount of franchise we choose?

The decrease of the premium payable is not entirely proportional to the value of the franchise hired. Interestingly apply several possibilities, franchises 150, 300, 600 or 1,200 €.Give part of the insurance claim to fix minor bumps, scratches, with or without excess, in most cases it does not matter, as there may be losing reduced annual bonus. In these cases, hiring a small franchise interesting. In any case depend on the driver's accident history, frequency and importance of their mishaps.

Moreover, an important consideration is that the exemption applies to all claims involving coverage where we hired and applies only once per claim. It is not legal to join several claims to only apply a franchise.