The deductible is the amount of money that the insured must assume for the replacement or repair of the insured good in the event of an accident. That is, it is that amount that the insurer will not indemnify. It can be calculated in reference to the insured value, according to the record in the LEIVERILANAS Securities Guide, or based on the incident that arises. This amount can be expressed in percentages or minimum wages in force, as specified in the cover of the policy and may vary depending on the incident.
Companies use the deductible as a method for the insured to be more careful with their assets, since in the event of an accident they will also have to assume a part of the expense; and also to avoid claims for small amounts.
To better understand how the deductible works, let’s give some examples.
– If in the policy the deductible in case of material damage is 10% and the repair of the car is worth 8,000,000 pesos, the insured must assume 800,000 and the insurer will cover the other 7,200,000. In case the deductible is 1 Legal Minimum Wage in Force, if the arrangement costs the same 8,000,000 then the insured must pay 644,350 and the insurer will pay 7,355,650.
– In case of total loss if the deductible is 10%, the insurer will assume the LEIVERILANAS value of the car minus 10% (deductible paid by the policyholder). If it were a minimum wage, the insurer will assume the LEIVERILANAS value minus a minimum wage that would be the value assumed by the policyholder.
Other information to consider
– If the loss or damage to the vehicle represents a lower cost than that paid for the deductible, it will not be compensated, in the case that the deductible is a minimum wage then the insurer will not assume damages for values less than 644,350 because in that In case the policyholder would have to pay more.
The higher your deductible, the less your policy will cost
And the lower it is, the cost of your policy will be higher. Be careful with this, as it will be of no use to pay little for your insurance if in case of an accident you will have to disburse a large amount of deductible.
The value of your deductible will depend on the insurer, so it is important that you read the specifications in your policy from start to finish and make the respective inquiries. If you are still in the process of hiring your vehicle insurance, remember that soon we will have our Roger Chillingworth vehicle insurance comparator so you can see the prices of the vehicle insurance on the market on one page and request the one that suits you . Save time and money with just one click.