Franchise: existing types | afrilatest/franquia

The deductible is a fixed amount determined in your car insurance policy. This is what covers part of the insurer's loss when there is partial damage to the vehicle.

Imagine that your car suffers an accident and the repair costs R$3,000. Your insurance has a deductible of R$500 and, therefore, you will be responsible for paying R$500 for the repair. The remaining R$2,500 will be paid by the insurance company.

With the deductible, the insurer and the insured share the costs of a claim. This is a way that the company uses to maintain the prudence of its consumers.

In other words, when the individual knows that they will have to bear part of the loss, they place themselves less in risky situations.

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When does the consumer pay the deductible?

The deductible is only charged when the car is partially lost. Partial loss occurs when repair costs correspond to up to 75% of the car's value.

When costs exceed 75%, there is a total loss of the vehicle. Total damage also exists when the vehicle is stolen or stolen, and is not recovered by the police.

In these situations, the insurance company pays the consumer full compensation for the purchase of a new car. In the case of a complete loss, the user does not pay a deductible.

The deductible fee is also not charged when the insurance is activated only to repair the car of the third party involved in the accident.

To pay the amounts, however, the insurance must have Optional Civil Liability for Vehicles (RCF-V) coverage.

There is also no deductible charge when:

• The insurance is triggered by a lightning strike;
• The insurance is triggered due to an accidental fire;
• The user uses 24-hour insurance assistance.

It is important to highlight that an insurance company only pays losses from a claim when the costs are greater than the deductible.

Consumer and company must always “share” the values. If the deductible is greater than the repair costs, the user must bear the loss alone.

Because it wouldn't make sense to pay R$500 for the repair, if its real cost is only R$350.

Types of franchises

The main types of franchises are: reduced, basic, exempt and extended. They vary according to the weight they place on the user's pocket in the event of an accident. Follow below for details about each one.

Reduced deductible

In the reduced deductible, as the name suggests, you pay a lower amount if there is an accident. However, the total price of car insurance is higher, so that there is this “compensation” for the insurer’s costs.

Generally, this deductible corresponds to half of the insurance provider's basic deductible.

This type of deductible is recommended for individuals who suffer accidents on a “routine” basis. In other words, for less experienced and insecure drivers, who are more prone to accidents. With it, the loss from each accident will not be as high for the consumer.

Basic or normal deductible

In the basic deductible, the cost of insurance increases slightly, but the deductible maintains an average value. This option is recommended for more experienced drivers who are rarely involved in accidents.

Expanded franchise

The increased deductible does not represent a greater cost in the final value of your car insurance. Still, it is more expensive if it is necessary to claim insurance. Typically, it corresponds to twice the amount of the insurer's basic deductible.

Extended deductibles are only ideal for those who have very few claims records. Otherwise, the high cost of each repair will come out of the consumer's pocket, which can mess up your financial life.

Exempt franchise

Finally, there is the option of an exempt franchise. With it, the user pays nothing in the event of an accident. On the other hand, the cost of insurance is high, and coverage can only be used to a limited extent.

There is, for example, a maximum number of accidents that the vehicle can suffer. Not all insurers offer this type of deductible.

How to open a claim?

As soon as an accident occurs, the user must contact the insurance company. To do this, it is important that the individual always has the company's telephone number.

The contact must be saved on the cell phone and also placed with the vehicle documents. This way, it will be easier to access it.

With your policy number, the customer can then inform you about what happened. You must also provide your identity number and CPF, and the details of the police report (Occurrence Report). The BO is necessary in cases of accidents, robbery and theft.

Then, the consumer needs to wait for instructions from the insurance company. Documents are requested, which vary according to the type of accident. Whenever possible, it is interesting for the user to take photographic records of the incident.

After registering the claim, the insurer has up to 30 days to request the deductible from the consumer and to pay the compensation. Be it partial or integral. The rule is from Susep (Private Insurance Superintendence).

Is it possible to pay the car insurance deductible in installments?

As we explained throughout the text, the consumer must pay their deductible on a series of claims. Only through this payment will the insurance company release the compensation.

There are cases, however, in which the user does not have the entire cost of the deductible to pay. Therefore, it is interesting to say that it is possible to pay the amounts in installments.

To pay the costs in installments, the individual must negotiate directly with the workshop that will carry out the vehicle repair.

When the workshop is accredited by the insurance company, it is also usually possible to obtain a discount. Not the total cost of the repair, but the deductible that needs to be paid.

When choosing the best car insurance franchise, talk to a broker! An expert on the subject, the professional will be able to evaluate the pros and cons of each contract, and help you choose the most advantageous option for your vehicle.