deductible buyback

deductible buyback

Everything you need to know about franchise buyout

When a road user is responsible for an accident, it is not uncommon for his car insurance company to withhold a deductible from the amount of compensation that should be paid, thus leaving a remainder to be borne by the driver. . Some insurance companies as well as car rental agencies, however, offer additional guarantees called “excess redemption”, which make it possible to partially or totally reduce the amount of this remaining charge in the event of a claim while driving the car.

IN SUMMARY :

    Reminder: What is a franchise?
    What is a franchise buyout?
    What are the franchise redemptions offered by car rental companies?
    Is it worth choosing a franchise buyout?

Auto insurance deductible on the contract
Reminder: What is a franchise?

The deductible is the name given by auto insurance companies to the amount of money that will remain payable by the insured as part of compensation paid by the insurer following a claim that has caused damage covered by the insurance company on the vehicle.

For example, if the car suffers 400 euros of damage and the deductible applied by the car insurance company is 150 euros, then the insurer will only cover the equivalent of 250 euros, the remaining 150 euros therefore representing the deductible to be paid by the driver of the car.
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What is a franchise buyout?

The repurchase of deductible is an additional guarantee offered by certain car insurance companies and allowing the driver to pay the amount of his car insurance premium more expensive, in exchange for a total or partial reduction in the amount of the deductibles applied in the event of accident.

A franchise buyout is generally offered by a vehicle rental company. Indeed, car rental contracts generally include significant deductibles in the event of a claim or act of vandalism because no vehicle, even rented, is immune to damage.

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What are the franchise redemptions offered by car rental companies?

Car rental agencies can offer partial deductible waivers, allowing the cost of a deductible to be reduced for the insured in the event of a claim, or a total deductible waiver, which makes it possible to entirely cancel the cost of the franchise concerned.

These additional guarantees offered by car rental companies are not mandatory, but generally allow users to drive more serenely during the rental period of their vehicle.

Rental agencies most often offer packages that are internationally harmonized and named:

    Collision Damage Waiver (CDW), which reduces the amount of the deductible in the event of a collision
    the Super CDW, which protects more elements of the vehicle than the simple CDW, or which completely eliminates the deductibles following a collision depending on the case
    Theft Protection (TP), which protects the rented vehicle against car theft or acts of vandalism
    Personal Accident Insurance (PAI), which covers bodily injury suffered by the driver of the rental vehicle and his passengers in the event of a claim

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Is it useful to choose a franchise buyout?

The amount of deductibles applied by rental agencies in the event of an accident generally depends on the value of the rented vehicle. Drivers who decide to rent a luxury car for a weekend could benefit greatly from excess buy-outs, as the price of these can reach several thousand euros in the event of a claim.

If road users who decide to rent a car wish to be perfectly protected, they could be led not to be satisfied only with the repurchase of excess, which will reduce the amount of excess in the event of a road accident, but rather look to additional benefit packages that may cover more situations that may prove financially difficult for the car hirer in the event of a road accident.