Define Insurance deductible : Can we have insurance without deductible?

Rate this post

Insurance deductible, definition

The deductible is the sum that will remain payable by you in the event of a claim. Most insurance contracts are made up of them. The insured will make choices based on his stock market and his perception of risk. It is not an obligation, but the latter will affect your contributions concerning your insurance contract.

In other words, the lower the deductible, the higher your contributions (usually monthly) will be. There is a catch-up by the insurer on his loss of earnings if he has to cover all the costs of the claim.

Whatever the field of your insurance (motorcycle, home, car, etc.), the contract must include the deductible and how it is calculated.

Can we have insurance without deductible?

Sure. However, you must be careful: as indicated, the amount of your monthly payments will increase. It must be said that the insurer cannot, especially if he receives lesser sums, cover all the claims which can sometimes reach several thousand euros. In fact, not taking out a deductible can be a solution when your financial situation is a little wobbly, but in the event of a claim, which unfortunately happens quickly, you will therefore have significant sums to pay. Perhaps it is better, suddenly, to set aside regularly.

What must therefore be looked at is whether the absence of a franchise is more profitable than a contract with a low-cost franchise.

Just like for a car formula, the deductibles and exclusions of guarantee provided for in your motorcycle insurance contract must hold your attention.

What are the different types of deductible in insurance contracts?

The relative deductible

Relative deductible is also called simple deductible. In this application, there is what is called a threshold, the latter being the amount defined in the terms of the contract. This simple deductible means that all of the damage is covered by your insurer if it exceeds the famous threshold. If the compensation for the claim is equal to or less than this threshold, it will be your responsibility. Take for example a guarantee that everyone knows, even if you have not subscribed to it: the mileage deductible. If it specifies that your breakdown service will be effective at 50 km but that you have a breakdown at 49 km, the breakdown service will be at your expense.

And the fixed deductible

Many deductibles are said to be fixed. That is to say that we know the amounts and the conditions of the latter. The fixed deductibles do not vary according to the claim or its seriousness. In fact, in general, no surprise! We find this type of deductible in home, car and motorcycle insurance.

The proportional deductible

The latter is proportional to the loss. It is calculated based on the latter and represents a percentage of the amount of said loss. Your insurance contract sets up a level, for the minimum as well as for the maximum amount.

The minimum level This is a threshold that must be reached to be compensated. The ceiling, or maximum level It represents the amount you will have to pay for compensation on the remaining costs.

 Good to know :

The amount must, whatever happens, exceed the minimum threshold to be covered, which is reminiscent of the relative deductible. Exceeding the cap sends you back to how a fixed deductible works.

Legal deductibles

Some deductibles are decided and enforced by law. For example, the insurance deductible in the event of natural disasters. For this guarantee, it is necessary that it appears in your contract, but also that the cause of the disaster is confirmed by an inter-ministerial order. That is to say that there is a report and a government approval that supports the natural disaster Learn more

Leave a Reply

Your email address will not be published. Required fields are marked *