How is the insurance deductible paid?

Do you have a policy for your car, but also have many questions? Don't know how it works and how the insurance deductible is paid? Find out more about the subject in this article.

When we first look for information about insurance, it is normal to feel a little lost. We are filled with doubts when it comes to understanding the terms used and the conditions for contracting.

It is important that you know everything that involves insurance in order to choose the best coverage and understand whether the requested deductible is worth it.

In this article you will understand how the insurance deductible is paid.

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What is the insurance deductible payment about?

First, let's understand what a deductible is. It refers to the part of the damage that is the responsibility of the insured, that is, a portion that you need to pay.

It can be a fixed amount or a percentage of the total amount contracted.

The insurance deductible is explained by the fact that the insurer needs to transport an amount for the insured, from which the expenses covered by the policy are reimbursed.

How does the insurance deductible payment work?

Knowing that insurance are contracts that have a commitment between you and the insurance company, a formula that involves a commitment between both parties is created, and each of them assumes the obligation of the other.

In the case of payment of the insurance deductible, an amount paid by the insured, which must be activated whenever there is a loss. As a simple example, to make the explanation easier, if our deductible is R$1,500 and the damage to be covered is R$5,000, the insurer will be responsible for only R$3,500.

Service providers use this type of contract because they assume that if the amount of damage to a vehicle is equal to or less than the deductible, you will choose not to pay, but if it is greater, they will be responsible for covering a large part of the costs.

An example of this is if your deductible is R$1,000 and the repair costs are R$450, you choose to pay the expenses. However, if the damages are R$3,000, the insurance company will cover the losses.

Therefore, the payment of the car insurance deductible can be made in relation to the damages and the amount to be paid in the event of an accident, and also whether it is worth taking action according to the previously agreed price.