Lingo shows:

Lingo shows: - franchises

A deductible is the amount of money that the insured person or a business has to pay for loss, damage or services before payments are triggered by an insurer. The terms of the franchise are contained in an insurance policy. If you have a franchise, that means you, the insured will be responsible for any loss or payment of said services to competition dollar amount. You often see franchises in car insurance and health insurance policies. Usually franchises are defined as a dollar amount, but can also be set as a percentage - which is increasingly common for homeowners insurance in areas that are at high risk for hurricanes and the damage associated with weather
Franchises are a way for insurers. to avoid the cost of treatment and pay a high volume of small claims. The more you risk loss, the insured agrees to take before the blows of foot insurance, your lower premium
Example :. You're in a car accident and damage your car is valued at $ 950 in damages. If your insurance policy has a $ 500 deductible, you will pay the first $ 500 of damage to your car out of your own pocket and the insurer will pay the $ 450 balance. In general, once the deductible is met, future losses you may have during the term of this policy will be covered in full.
Companies can also opt for deductible plans for some types of business such as coverage of workers compensation programs.
As with all insurance questions, you should check your own policy. Insurance can vary according to state law, by type of coverage, and the individual policy. It is a good idea to read your policy and ask your insurance agent to explain the terms you do not understand
More
Hurricane and Storm franchises -. Of Insurance Institute Information
franchises definitions - various definitions established by answers.com
How deductibles and co-pays work - a discussion on insurance disease How Stuff Works

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