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Very widespread lately. The insured agrees to pay a fixed part of the damages caused to his vehicle and the rest is paid by the company. Insured and insurer share risks.
As for the coverages, they are the same, as in the all-risk ones, the difference is found when when paying the compensation, the insured must pay a fixed part of the expenses for damages caused to their car. (The fixed part established in the policy is the franchise) The company and the insured share the risks.
The important thing is the fixed amount of the franchise, because the higher it is, the lower the premium amount to be paid. It is having a lot of acceptance because it incorporates All Risk Insurance with an economic premium. This system is not applicable to all insurance coverage, some companies only apply it to their own damage, although others also apply it to theft, fire, etc.
Advantage: of hiring a franchise is that the cost of the premium is reduced notably, especially in the coverage for own damages. It is recommended to those who have luxury or expensive cars with high-value policies or people, who never have accidents and believe they will not have them, that is, for those who do not take their car to any repair for their own damage throughout the year. Remember that only one excess can be applied per claim, that is to say that if in an accident the fender and a door are damaged, only one excess will apply.
Disadvantages: They are not suitable for those who frequently suffer minor accidents.
Various insurances included in Car Insurance