Auto insurance deductible: does every insurance have one?

The insurance deductible is one of the points that generate the most doubts for consumers. After all, what is its value? Am I obliged to pay it? Does all insurance have a deductible? Follow the text and discover everything you need!

Are you wondering if all insurance has a deductible? The doubt is valid, as this type of obligation can affect finances after an accident. But, before we answer the main question of this text, we have one for you: do you know how a franchise works?

The insurance deductible is the amount the consumer is responsible for after a partial loss. In other words, it is the part that the user must pay to the workshop. The deductible is only charged after partial losses, in which the cost of repairs is less than 75% of the car's market value.

Insurance companies charge a deductible as a way of encouraging driver prudence. According to the companies, if the user knows that they will have to bear at least part of the loss, they will be more careful in avoiding it.

The cost of a deductible is defined in the policy, as a fixed amount or percentage. It is essential to pay attention to this aspect of the contract, so that you are not surprised after an accident.

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Types of franchises

There are four most common types of franchises, regulated by the Private Insurance Superintendency (Susep). Some insurance companies also offer different deductibles, which we will talk about in the next topic. In any case, the main deductibles are: basic, reduced, increased and exempt.

• Basic: find a balance between the value of the deductible and the cost of insurance.
• Reduced: has a lower cost, but the monthly insurance premium becomes higher. After all, after an accident, the insurance company will have to bear most of the loss.
• Majorada: the deductible is higher and, therefore, the cost of insurance is lower. After an accident, the user pays most of the costs for car repairs.
• Exempt: little offered by insurance companies, the option eliminates the cost of the deductible for the consumer. Thus, after any problem, the company pays for all losses. On the other hand, the cost of this type of insurance is much higher.

Imagine that your vehicle suffered a collision with partial damage. The cost of repairs will be R$4,000. What would be the amount you would pay with each type of franchise?

• If your deductible is basic and R$2,000, you will pay R$2,000, and the insurer will pay the remaining R$2,000;
• If your deductible is reduced to R$1,000, you will pay R$1,000, and the insurer will pay the remaining R$3,000;
• If your deductible is increased and amounts to R$3,000, you will pay R$3,000, and the insurer will pay the remaining R$1,000;
• If your deductible is exempt, the insurance company will pay the R$4,000 needed for the repair.

When does the insured not pay a deductible?

You may have noticed that all insurance has a deductible, even if it is equal to zero. The insurance contract must indicate the type of deductible contracted and its value, so that the user is aware of their expenses after an accident.

As already mentioned, the deductible is only charged in the event of partial loss of the vehicle. And this is as long as the repair is carried out on the insured vehicle. If third-party coverage is activated, the deductible is not charged. Coverage for third parties is an addition to insurance and pays for material and physical damage to individuals involved in an accident with the insured.

1st franchise

Another situation in which the user does not pay a deductible occurs when the insurer has the so-called “exemption from the 1st deductible”. Few companies work with the option, but it can be worth it.

With the alternative, the user does not pay the deductible on the first claim during the policy period. From the second claim onwards, however, the deductible must be paid normally.

It is common for insurance policies to be valid for one year. Therefore, if the user only has one accident during the year, they will not pay the deductible at any time.

Third party fault

There are also insurance companies that exempt the user when he is the victim of the collision. In this case, however, the individual needs to obey some stricter rules. It is necessary, for example, to register a Police Report.

In any case, when being the victim of a collision, it is best for the user to ask the other individual to compensate for the loss. If the third party has insurance, they can use it to cover their losses, that is, the victim's losses. If not, the driver will have to pay for the damages out of his own pocket.

However, there are cases in which the culprit refuses to pay the amounts, or is not identified. It is in these scenarios that your insurer's exemption from the deductible becomes beneficial.

Now you know everything you need to know about the insurance deductible. Get a quote from good insurance companies and guarantee protection for your vehicle!