Have you taken out car, home or mutual insurance and are wondering about the deductible? The deductible corresponds to an amount that you still have to pay after an injury or treatment. We guide you to know what the excess is when it comes to insurance contracts and the cases where it is not applicable!
What is an insurance deductible?
The insurance deductible corresponds to the amount that the insurance company does not cover in the event of damage. Specifically, when you are the victim or responsible for a claim, you sometimes have to pay a portion of the costs. The supplement is reimbursed by your insurance company.
The majority of insurance contracts contain a deductible statement, which is different depending on the guarantees or the formulas subscribed. In short, there are contracts without excess, which therefore have a significantly higher premium.
car insurance deductible
The size of the deductible is generally proportional to the incurred risk and the expenses that will be associated with an injury. In this logic, in car insurance, the deductible for glass breakage will be lower compared to the deductible in case of replacement of a vehicle (damaged or burnt) for example.
health insurance deduction
As for the co-insurance, the deductible may apply to certain costs, especially medications or tests. Its amount varies in the contract. The reason why it is necessary to read your insurance contracts well… In some cases, you also talk about residuals with a charge for certain care. Therefore, it is sometimes advisable to choose additional health insurance, which can cost you less than the rest of the costs, especially for dental care.
Who pays the deductible in the insurance?
For car insurance, in the event of an accident for which you are liable, your insurance company will estimate the amount of damage caused and define the total compensation amount. From this amount, the insurance company then deducts the excess that is stipulated in your insurance contract.
In the event of an at-fault accident, you have no deductible to pay and will receive the entire compensation amount. In the case of accidents with shared responsibility, the insurance company can decide to apply the deductible or split it in two.
What are the different types of insurance excess?
In the insurance market, there are several types of excess:
- The fixed insurance excess, which is used the most. It sets an amount determined upon signing up for the contract, which will be deducted in the event of the claim in question.
- The simple insurance excess only provides compensation to the insured if the size of the damage exceeds the excess. If this is the case, the insured receives the full compensation.
- The proportional insurance excess, which applies according to a percentage of the damage caused. Below this threshold, the insurance company pays no compensation.
- The deductible in days corresponds to a number of days during which you do not benefit from your guarantee or compensation.
How do you avoid paying the deductible?
Some insurance companies offer contracts without excess. On the other hand, the insurance premium will be significantly higher than a contract with an excess. This situation corresponds to buyback of excess, which then allows for a total compensation in the event of a disaster.
Advice: Before you decide to take out an insurance contract without excess, you must assess what is most profitable for you in relation to your situation.
Deductible buyback is often used when renting a car to best protect the driver in the event of an accident or responsible collision.
Do not confuse deficiency and excess in insurance
Please note that the excess period of the insurance differs with the waiting period. The grace period indicates the period during which the guarantees drawn up do not apply and come into force upon signing the contract. The deduction period, meanwhile, corresponds to a period that applies after the damage.
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