Before hiring protection for your vehicle, it is important to understand some terms established in the contract, and knowing how the insurance deductible works is one of them.
After all, interpreting the insurance policy correctly is essential for you to hire exactly what you need and, consequently, to make a good deal.
If you’ve even heard of it, but don’t know very well what the insurance deductible is or how it works, follow the reading and have no more doubts about it.
What is the insurance deductible?
If you have Auto insurance for your home, car, business or any other asset, it is important to understand what the insurance deductible is, as it is money that will come out of your pocket.
This is a mandatory financial contribution that must be paid in the event of an accident. No matter who the insurer is or the protected property, all insurance will have a deductible to be paid by the insured.
In short, in the case of automobiles, the insurance deductible is nothing more than an amount determined in the policy that the insured must bear in certain types of claims so that the insurer can make the necessary repairs.
In practice, the deductible works as a kind of security for insurance companies to protect themselves against misuse of the service.
How does the insurance deductible work?
To try to explain in the best possible way how the insurance deductible works, let’s imagine that you have taken out insurance for your car .
In the insurance policy contracted by you, it will be specified, for example, that the deductible is BRL 1,800. It works as follows:
Your automobile has been involved in an accident that has caused damage to it. And, the amount to repair the damage was raised by R$ 5 thousand.
This means that the insurer will cover the amount of BRL 3,200 and you, as the insured, will be responsible for paying the deductible in the amount of BRL 1,800.
Remembering that this is just an example, since each franchise has a different value.
When do I have to pay the insurance deductible?
The need to pay the insurance deductible occurs in some specific cases. As this is one of the points that raises the most doubts for policyholders, we will now explain in what types of claims it should be paid or not. Check out:
Total loss
When the vehicle is considered unrecoverable, that is, in the event of a claim that results in total loss or its damage exceeds 75% of its market value, the insured is entitled to be reimbursed without having to pay the deductible.
The same rule is valid for cases of theft or theft in which the vehicle is not recovered.
partial loss
If the claim results in partial losses, that is, when the damage to the vehicle is less than 75% of its value, the insured is obliged to pay the deductible.
The good news is that no matter how much the insurer spends to repair the damage, you will only have to pay the deductible stipulated in the policy.
This situation can occur as a result of collisions, natural causes or when the vehicle is recovered from a robbery or theft with malfunctions.
Claim with third parties
In the event of a traffic accident caused by the insured and involving third parties, the amount of the deductible will not be used to repair damage to the vehicles involved. Unless he has contracted this type of coverage.
Furthermore, if the amount intended for third-party coverage is exceeded, the contracting insured is responsible for paying the difference.
When is it worth paying the insurance deductible?
Before opening a claim with your insurer, you should make some important considerations to assess whether it is worth paying the deductible.
The first thing to do is compare the cost of the deductible with the value of the repair, if the value is less than the deductible, obviously it is not worth triggering the insurance. That is, it is only feasible to open a claim if the repair value is greater than the deductible.
Frequently asked questions about how the insurance deductible works
Who should pay the insurance deductible?
The insured. For this reason, you need to assess whether or not it is worth opening a claim with your insurance company.
