Do we always have to pay the car insurance deductible?

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September 8, 2024

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Do we always have to pay the car insurance deductible?
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Do you want to insure your car, but don't understand why you have to pay an auto insurance deductible? Don't worry, because in this article, we'll explain everything you need to know about the subject.

In the world of insurance, many words are beyond most people's understanding. To avoid surprises, the future policyholder should read the contract carefully and research any terms they are unfamiliar with.

One of the words that causes confusion for many is “deductible”. It corresponds to the part that the insured must be responsible for in the event of a claim.

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This amount is charged in situations where the insured is partially to blame for the damage caused to the vehicle.

Why do we have to pay a car insurance deductible? — Image: Getty Images

Will I always pay a car insurance deductible?

Whenever an accident occurs (even if covered by insurance), will the deductible be charged? Not always! Below, we have listed some of the most common cases in which the deductible is or is not charged.

Understanding the franchise

The insurance deductible exists as a form of protection for the insurance company itself, which will ensure that the insured will not activate the insurance in bad faith, as he knows that, if he is at fault in the accident, he will have to bear part of the amount spent to repair the vehicle.

What is the value of the franchise?

The value may vary depending on the insurer and the type of insurance chosen, so there is no pre-established price that is fixed for all insurance.

It is worth noting that there are different types of franchises that can be chosen:

Reduced franchise: It is one of the most popular choices, as its value is low. The negative point is that because the deductible is lower, the price of the insurance is higher;

Normal franchise: The most basic plan, as well as the reduced deductible, is also very popular. It has an average cost, its value is between the reduced and increased deductible;

Increased deductible: It is usually used more by companies because its price is higher than the previous ones, and consequently, the insurance value will be lower;

Exempt franchise: harder to find, as in this modality you may pay more for insurance and still have some limitations, since you will not bear any costs when activating the deductible.

How does the insurance deductible work?

After a collision, or other event that causes damage to the vehicle, it is important to assess whether it is worth making a claim on the insurance or not.

Sometimes, the cost to repair the vehicle is lower, equal to or slightly different from the price stipulated for the deductible.

In these cases, it may be more advantageous for the driver to bear the costs, as some insurance companies may offer discounts on future plans for policyholders who have not activated the insurance or even been involved in accidents.

Why pay a car insurance deductible?

As mentioned earlier, charging a deductible is a way to ensure that the insured does not intentionally cause damage to the car, with the intention of receiving undue compensation.

Knowing that he will have to bear part of the costs of repairing the car, the insured is more likely to be more careful when driving.

Paying the deductible is important to ensure that the owner will not have to bear the costs of repairing their car alone if something unexpected happens.

How do I pay the car insurance deductible?

Before answering this question, it is important to remember that the deductible amount is only charged when the service is activated.

It will be paid to the workshop or professional who provided the service. Since the deductible corresponds to a partial amount, the insurance company will be responsible for assuming the remaining amount of the payment.

Conclusion

The decision to take out insurance, even if you have to pay the car insurance deductible, is an important factor in being able to enjoy your property with peace and tranquility, knowing that if something unexpected happens, you won't have to assume the loss alone.

So, did you understand why you have to pay the car insurance deductible?

Do we always have to pay the car insurance deductible?

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Do we always have to pay the car insurance deductible?

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