- That if they charge you a lot, that if you do not know how much it is, these are doubts that many of the insured face when making use of their policies.
- To get the most out of the money you invest in insurance, it is essential to know how deductibles work.
- A deductible is basically a part that is “subtracted” from the payment made by the insurer for the loss suffered by the insured.
When we talk about insurance, one of the concepts that sometimes remain unclear is the deductible. That if they charge you a lot, that if you do not know how much it is, these are doubts that many of the insured face when making use of their policies.
But, to get the most out of the money you invest in insurance, it is essential to know how the deductibles associated with a policy work and when a claim is filed.
What is a deductible?
According to Insurance Information Institute, a deductible is basically a part that is “subtracted” from the payment made by the insurer for the loss suffered by the insured.
According to Quálitas experts, the deductible payment is made in various types of policies, major medical expenses, housing and automobile. In the case of vehicle insurance, in material damage, each insurance company has its own deductible table according to the contracted insurance plan.
According to the National Commission for the Protection and Defense of Users of Financial Services (Condusef), the percentage of the deductible is set based on the number of claims that are registered and the amount of money that in a period (regularly a year) the insurers paid for the events on average.
Another important fact about the deductible is that it is a fixed percentage, so no matter the value of the repair of the damage after a claim, the insurer must receive the deductible and cover what is missing.
For example, auto insurance generally carries a deductible of 5% of the value of the vehicle on damage and 10% if it is a total loss. If your car costs 250,000 pesos and in a crash it suffers damages for 50,000 pesos, you will only have to pay 12,500 pesos and the rest will be borne by the insurer; however, in the event that the damages are for a cost of 9,000 pesos, in any case the amount to be paid by the insured will continue to be 12,500 pesos.
How is the deductible calculated?
Each insurance company has its own guidelines to establish how much it is going to establish for the deductible. According to the Condusef, each insurer will determine this amount after doing a cost analysis of the policy and also when calculating the value of the insured vehicle.
Insurers can take into account the commercial value of the vehicle or the invoice value, everything will depend on the insurer. For example, if your deductible was established at 5% of the commercial value of the car, and this is 250,000 pesos, your payment obligation in the event of a claim is 12,500 pesos.
That is why it is important that before hiring, it is best to compare prices and choose the best for your own case, taking into account your car and your needs.
Being a responsible driver involves investing in your safety and that of third parties with the insurance package that best suits your needs, but also knowing in depth what the implications are and the amounts set for paying the deductible.
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