When we buy a new car, one of the things we should consider is to take out Car Insurance at All Risk . It is the best protection for a brand new car and, in addition, we can make the premium cheaper if we do Car Insurance with Excess . You know how it works? Are you clear how you can save money by purchasing the franchise with Auto Insurance? Do not stop reading: in this post we explain it to you.

As we mentioned before, when you release a car, it is convenient to contract a policy that includes the coverage of Own Damage . The reason that any Insurance broker would recommend an All Risk Insurance in a new car is that, if you suffer a serious accident during the first years of the vehicle, the insurer will cover the loss of the vehicle with a new value in case it remains total loss in an accident , that is, at the price it cost when leaving the dealership.

Full Risk Insurance is the policy that offers the most protection, but it is also the one with the highest premium. The higher the risk covered, the higher the cost of the Insurance. However, it is worth hiring this type of policy when it comes to insuring a newly purchased car , which is often being paid in installments with financing.

However, there is a very interesting option for those people to whom an All Risk is expensive. This is the All Risk Insurance with Franchise , which allows to lower the cost of the policy without losing coverage, sharing the risk of suffering a loss between the insurance company and the client. 

 

The franchise in Car Insurance allows the price to lower the price of the policy without giving up the coverage offered by an All Risk, but with the condition that the client assumes part of the risk in the event of a claim.

When contracting a franchise insurance, the insured automatically gets a discount on the policy. This is the main advantage of the franchise and the reason why it is very common for us to find franchises in Comprehensive Car Insurance policies.

On the other hand, that franchise is the amount of money that the policyholder must assume when an accident occurs that causes damage to the car and is not the responsibility of a third party.

In other words, in an accident in which the insured is responsible for the loss, the damage to the car insured with an All Risk Insurance is covered, but the policyholder must pay part of those repairs, specifically the amount of the franchise that appears in the conditions. particulars of the contract.

The operation of franchises in Comprehensive Car Insurance is simple: Taking out Insurance with Franchising allows you to get a discount on the price of the policy, and the higher the franchise, the Automobile Insurance is cheaper .

But, of course, having a franchise insurance assumes that the owner bears part of the expenses derived from a claim, up to the amount or percentage of the franchise agreed in the contract. The greater the amount of franchise, the higher the maximum limit to be paid in the event of a claim, and the further the policy coverage threshold will be.

 

To further clarify what the franchise entails when insuring a car , it is very revealing to know that in Full Risk Car Insurance we can find franchises from 100 and 200 euros to 600 euros or more, depending on the car and the Insurance contracted. 

This means that, if we have an accident without third party liability and our car insured at All Risk with a franchise policy is damaged, the Full Risk Insurance with Franchise will cover damages that exceed the limit of the established franchise. 

If the franchise is 600 euros, for example, the first 600 euros will have to be paid by the policyholder. That means that when the repair of the damaged car exceeds that figure, the insurer will take care of the rest. But the policy holder fully assumes the franchise.

In addition, if it is a small repair, the Insurance can be free to pay nothing because the cost of the claim is below the franchise limit.

In the same way, it may happen that during the annuity that the Insurance lasts there are no claims that cause damage to the car or that the parts that appear are due to accidents in which the person responsible is another vehicle. In these cases, the insured takes advantage of the reduction in the price of the policy without paying anything.

 

In franchise car insurance, it is very important to take into account how franchises are applied to each claim. You might think that the franchise that we negotiate applies to all claims that occur during the year that the policy renewal lasts, but it is not.

It should be borne in mind that the franchise is applied in its entirety in each claim suffered by the vehicle throughout the term of the Car Insurance. 

In this way, if we file several parts during the year, and damages occur that do not reach the agreed franchise in each claim, the insured will have to pay out of pocket for all these expenses, even if the sum of the damages generated by all these claims exceed the amount of the franchise. 

However, it is advisable to carefully read the conditions of the policy to be clear about the application that our company makes of the franchise. 

In addition, it is advisable to find out if there are services or guarantees included in the Car Insurance offer that are outside this system and are applied for free.

 

Saving with the Car Insurance franchise depends on the loss ratio and the type of policy that we contract. In an All Risk with Franchise, you pay less for the discount that is applied to the Insurance , but we will only really save if we do not have to give parts to the insurer that force us to pay for car repairs, within the limit of the franchise.

On the other hand, if we have a bad year and suffer breakdowns or blows that we cannot predict, that savings may go to the workshop. 

As we mentioned at the beginning, franchise comprehensive insurance is more recommended to insure cars of up to two years old . In addition, it is especially interesting for drivers who have a low accident rate or who make a few kilometers a year. 

Theoretically, in this situation, the car is insured with maximum coverage and the client does not present a profile that suggests that several parts will be chained throughout the year.

 

In certain cases, depending on the use we make of the car and the risk of suffering a loss, it may be better to take out Insurance without excess and look for savings by comparing Cheap Car Insurance , in which it is possible to adapt coverage to personal circumstances. each.

From our Insurance brokerage we can help you compare policy offers, until you find the one that best fits your pocket, without losing the protection you want for your vehicle.

Just by filling out an insurance comparator form, we get down to work to offer you a budget for cheap Car Insurance , with the best coverage. 

In addition, we advise you on the choice of coverage, helping you to choose between the different types of Insurance at your disposal , whether it be Full Risk Car Insurance, with or without franchising, or extended Third Parties . You will see that you can save on Car Insurance , whether or not it has a franchise.