The deductible is the amount that remains to be paid by the insured in the event of a claim. This is a pre-established sum during the stipulation of the insurance contract and is deducted from the amount that the insurance company undertakes to pay in the event of a claim to cover the damage.
Some companies provide for the possibility of an overdraft deductible for a lower premium. However, often the convenience is only apparent: to save a few tens of euros on the insurance premium, you risk having an overdraft deductible of a few hundred euros. It is therefore always good to check its presence on the insurance contract to avoid unpleasant surprises in the event of a claim.
The deductible can be of two types:
Absolute deductible: If you purchase a Motor TPL policy with an absolute deductible, the insured is obliged to always compensate the amount of the deductible regardless of the extent of the damage. Obviously, if the damage is less than the amount of the deductible, the insured will only reimburse the amount of the damage.
For clarity, let’s take an example. If due to an accident we cause damage in the amount of 300 euros and the deductible is 500 euros, the damage is borne by the insured. If, on the other hand, the damage is 700 euros, the insurance company reimburses a calculated amount, subtracting the damage from the deductible: in this case, 700 euros minus 500 euros. So the customer will only be entitled to a refund of 200 euros.
Relative deductible: If you purchase a third-party liability insurance policy with a relative deductible, the insured person will have to reimburse the deductible part only if the damage is less than the amount of the deductible. If, on the other hand, the damage is greater, the amount is fully borne by the company.
Using the example above, if the damage is equal to 300 euros and the deductible is 500 euros, the insured will pay the full amount. If, on the other hand, the damage is equal to 700 euros, the compensation is entirely borne by the insurance company.
Usually, the cost of the Motor TPL premium is lower in the case of the absolute excess, as the insured is always required to reimburse the excess amount. In the case of a policy with a relative deductible, the premium is higher, as the amount is fully borne by the insurance company if the amount of the damage exceeds the deductible.
What is advisable to do if the deductible is at our expense in the insurance contract? there are products, such as Zero Franchigia, which allow you to ensure your deductible. More precisely, the Zero Franchigia product reimburses the entire amount to be paid by the insured in the event of a claim. In other words, anyone who signs a car insurance policy with an excess and purchases the Zero Excess product in the event of a claim will not have to pay anything.