How does the auto insurance deductible work?
The monthly premium payable to your auto insurer is not the only cost that goes into your auto insurance. Another indicator to consider when purchasing a policy is the auto insurance deductible. What is an auto insurance deductible? How is it calculated? What about the auto insurance deductible buyback? Coover answers your questions.
Summary
Auto insurance deductible: definition
The importance of comparing auto insurance for the deductible
How is your auto insurance deductible calculated?
Deductibles per claim
How does the auto insurance deductible buyback work?
Auto insurance deductibles for certain types of drivers
Auto insurance deductible: definition
The auto insurance deductible refers to the amount remaining at your expense after compensation from your insurer following a loss. You must therefore pay part of the damage after a responsible accident or if the responsible third party has not been identified. Note that if you are not responsible for a claim, you will not have to pay a deductible. Also, in the event of a co-responsible claim, the portion of the deductible to be paid is divided into two.
The deductible was put in place by insurers to make motorists responsible for their driving. Indeed, auto insurers attach great importance to compliance with the Highway Code in order to reduce the level of risk of loss.
Many guarantees taken out, such as "vehicle theft", "broken glass" or "fire" guarantees, are accompanied by a deductible. The calculation methods for your car insurance deductible can be different: via a fixed sum, a percentage or a combination of the two.
The importance of comparing auto insurance for the deductible
As all the deductibles are written into the contract, they represent an excellent benchmark for choosing the best car and motorcycle insurance contract.
Also note that in general the amount of the auto or motorcycle insurance rate is lower the higher the deductible. This is how some insurers communicate by claiming that their rates are the lowest: to verify this, you must also examine the amount of their deductibles!
Conversely, for the insured, it may be interesting to ask to reduce or eliminate certain deductibles, at the cost of a small increase in the contribution. To be negotiated with your insurer.
Using an auto insurance comparator will allow you to receive a detailed list of offers corresponding to your profile and to choose the most suitable deductible for your situation. In addition to saving considerable time in your research, you will realize big savings.
Compare auto insurance
How is your auto insurance deductible calculated?
The higher the amount of your deductible, the lower your auto insurance premium will be.
5 types of auto insurance deductibles are applicable.
Simple or relative deductible
Full compensation is made possible by your insurer if the damage caused exceeds an amount established at the time of subscription.
Example: if your deductible is 500 euros and you cause a claim costing 400 euros, you will not receive any compensation. Conversely, if the loss costs 600 euros, you will be fully compensated.
Absolute franchise
As for the simple or relative deductible, here you are only compensated if the damage caused exceeds an amount established in advance. The only difference is that you get a difference in the cost of the claim.
Example: for a deductible of 500 euros, if your claim costs 600 euros, you will receive 100 euros in compensation.
The kilometer deductible
This deductible applies only for the assistance guarantee. This deductible indicates the threshold at which assistance can be taken into account. The "0 kilometer" assistance allows you to take charge of your broken down vehicle directly at your home. The "40-kilometer" assistance guarantee, on the other hand, implies that your breakdown must take place at least 40 kilometers from your home to benefit from coverage from your insurer.
The deductible in days
This deductible mainly concerns replacement vehicles. The days allowance allows you to set a number of days during which your car will be covered.
The proportional deductible
This deductible corresponds to a percentage of the total amount of damage caused following a claim. The percentage is mentioned in your auto insurance contract and fluctuates according to the guarantees concerned.
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