(Clause de franchise) Small claims are expensive for an insurance company to handle in relation to the amount involved and in many types of insurance, a provision is made whereby the insured agrees to pay small claims in return for a reduced premium. Disappearing deductible, often found in automobile policies and homeowner's policies, uses a formula whereby the deductible applies in small losses and is gradually reduced as the size of the loss increases so that in very large losses the insurance company pays the loss in full.