Car insurance, traffic accidents, accidents. In vehicle insurance there are different important terms to know as they could influence the money we pay to the insurer, one of them is the deductible.
Pay attention and you will be prepared to make your calculations in case of any eventuality.
The deductible is the economic amount that must be paid
By the insured in case of an accident, that is, the amount that the insurer will not compensate. This amount is calculated according to the specified percentage in the contracting of the policy.
Deductibles always have a minimum value, which is, the insured will have to pay that amount at least when requesting compensation from the insurer.
How is the auto insurance deductible calculated?
Example 1: In the policy the deductible in case of material damage is 5% with a minimum amount of 500 soles. If the repair of the car is worth 3,000 soles, the insured – according to the percentage – should assume 150 soles but for the minimum amount, he will still pay the 500 and the insurer will cover the other 2,500.
Example 2: The deductible for Total Theft is 10% and the commercial value of the car (or the insured amount) is 30 thousand soles, so the insured must pay 3000 soles and the insurer will take care of the remaining amount so that I can buy a new car.
Other information to consider
In some insurers the deductible is reduced by up to half if the car is repaired in the workshops affiliated to your insurer’s network.
Insurers have different additional conditions regarding deductibles. Some establish that if the driver of the vehicle at the time of the accident is under 23 or 25 years old, the amount of the deductible doubles.
It all depends on the insurer, so it is important that you read the specifications in your policy from beginning to end and make the respective inquiries.
If you are still in the process of hiring your vehicle insurance, now you know something else you should consider before doing so.