The deductible is the reimbursement of damage to the insured person. For cars, we mean the damage caused to third parties which will be reimbursed by the insured. But how many types of deductible are there? And how does it work?
When taking out car insurance, special attention should be paid to the deductible. So let’s see what is meant by deductible and how it works.
What is the deductible?
We are talking about that part of the reimbursement of damage to be borne by the insured, which you will therefore have to pay out of your own pocket in the event of a claim. In the specific case of insurance – such as accident insurance or RCA – it is that sum or percentage below which the insurance company does not recognize any indemnity or reimbursement to the insured.
There are two types of insurance contracts: absolute deductible and relative deductible.
Relative Deductible
Relative means that sum, agreed upon signing the contract, below which the insured is not entitled to any reimbursement. If the damage is greater than the established sum, however, the reimbursement is full. Examples:
relative 600 euros, damage 400 euros, no compensation is foreseen;
relative 600 euros, damage 700 euros, the compensation amounts to 700 euros, the entire damage.
Absolute deductible
Also in this case it is established in the contract phase and is charged to the insured, but with the necessary clarifications. In fact, if the damage is equal to or less than the amount of the deductible, the insured person is not entitled to any reimbursement. If, on the other hand, the damage is greater than this amount, the compensation will be equal to the difference between the amount of the damage and the deductible. Examples:
absolute € 600, damage € 400, the insured is entitled to no compensation;
absolute € 600, damage € 1,200, compensation of € 600 is provided (the difference between damage and deductible).
Car insurance compensation
It can also be included in motor civil liability. Inclusion in the contract can result in you having small savings on the insurance premium. In this case, we are talking about that part of the damage caused to third parties that must be reimbursed by the insured.
Specifically, in the event of an accident with your responsibility, whoever suffered the damage can request compensation from the insurance company that is required to do so, but this can claim against you that you will have to pay the full amount of the deductible out of your own pocket.
In motor insurance the most used is the absolute one, that is, that which always involves the payment by the insured of the amount of the damage up to the excess amount, while the insurance deals with any amount exceeding the excess.
Finally, we remind you that if you are not responsible for the accident, this rule will not apply and you will have full compensation.
Travel insurance compensation
You have certainly heard of deductibles in travel insurance as well. Also in this case it is the sum under which the insurance you have taken out for that particular trip does not give any reimbursement.
In which cases does this insurance work? In the event of medical expenses and medical return (due to accident, illness, etc.), travel interruption, travel delay or missed departure, loss of personal baggage, and RCA in the event of an accident.
A few examples? There are companies that apply a minimum limit of 70 euros in each claim for health costs, excluding cases of hospitalization, day hospital, and first aid, within which the insured must provide from his own pocket. Others that, in the event of hospitalization (excluding First Aid and Day Hospital), reimburse the full value of the hospitalization.
