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How to rent a car I wrote in my previous post.

Here I would like to dwell on the franchise in detail. This issue is usually the most difficult.

What is a franchise?

Franchise is the maximum amount that will be limited by your participation in covering possible harm. Upon occurrence of an insured event, you are responsible for the car only within the amount of the franchise, and everything else is paid by the insurance company.

For example, under the terms of the rental car Audi A4 franchise was 600 Euro. During the operation the car hit and damaged the wing, ie the car was damaged for a total of 3,000 Euros. But the tenant (the one who took the car to rent) pays the dealer only 600 Euro.

The insurance with a franchise is denoted by CDW \ TP, where Collision damage waiver is an accident insurance, and Theft protection (waiver) is an abduction protection.

Please note that the company-distributor has the right to keep from the credit card of the client all the amount of damage in only two cases:


If the car was stolen from the fault (inattention) of the client - theft of the car along with the ignition keys;
If an accident occurred due to the client being in the state of alcohol / drug addiction.

The amount of the franchise can be reduced. In this case, your insurance contribution will be higher by X USD / Euro per day. That is, to the amount of usual insurance you will be offered to pay extra for 10-20 Euros for each day of the lease. This will reduce your franchise to 200-300 Euros. This type of insurance is called Super Insurance - Super CDW + TP.

Some companies offer "zero fangsia", that is insurance without a franchise. To get this service, you have to pay extra. The option called Zero over insurance (Zero risk) is called.

How beneficial is the reduction of the franchise in the event of an additional payment, it should be considered. For example, the usual terms of car rental are the deductible of 600 Euro. Under the terms of the franchisor, you can reduce the franchise to 200 Euros, but at the same time you will have to pay 20 Euros for every rental day.

If you take the car for 10 days, then it makes sense to buy a franchise reduction - if you happen to be an insurance case, you will pay 400 Euros (200 Euros for reducing the franchise and 200 Euros for the franchise itself), instead of 600 Euros under standard conditions. If you take the car for 20 days, then the reduction of the franchise does not make sense.

There is another option for car rental insurance - this is the insurance of the franchise itself :-) It is called Refundable excess. Meaning - at the onset of an insured event, you pay a franchise (EUR 600) to the dealer. And the cost of your franchise (the same 600 Euros) is reimbursed by an independent broker when you provide the relevant documents (the police report and the confirmation of the dealers that you are paying a deductible).

Sometimes, Refundable excess is included in the rental price, sometimes you need to buy this option in addition.

What else you need to know. As a rule, insurance for a car does not cover the following damages caused not as a result of an accident:

damage to the windshield;
damage to car tires;
damage to interior trim of the car and others. We must look at the terms of the hire.
In my opinion, the most interesting insurance condition is zero surcharge (zero surcharge) or franchise reduction (Super CDW / TP). But everything should be considered :-)

Another couple of terms relating to car rental insurance: Third party liability - Third party liability insurance and RAI / Personal Accident Insurance - Personal accident insurance.

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