Your guide to know more about car insurance deductibles
When buying a car, you will find two types of car insurance, one of which is compulsory on some types of cars and the other is supplementary for more safety for you, your family and pedestrians as well.
In the two types, you will find what is known as car insurance deductibles, which vary according to the different insurance policies.
What are car insurance deductibles?
The car insurance deductibles are the percentage of compensation value that the insured will spend from his own pocket in the case of any damage to the car which is stipulated in the car insurance policy, and the insurance company will pay the remaining percentage or the remaining cost to repair the damages.
What is the importance of car insurance deductibles?
Insurance companies impose the car insurance company deductibles to take some guarantees on the insured that he will take the necessary measures and means of safety and security for him and the car, to reduce the possibility of any damage or losses.
Types of car insurance deductibles
There are two types of car insurance deductibles:
- Fixed endurance.
- Relative endurance.
What is fixed endurance?
Fixed endurance is an amount of money agreed upon in the car insurance policy, to be paid by the insured/client for any damage to the car as a result of many types of accidents.
The compulsory car insurance deductibles often start around 200 L.E in Egypt.
What is relative endurance?
Relative endurance is a specific amount that is calculated based on the type of accident, the type of damaged spare parts, or the place of repair.
The following is an explanation of the types of relative endurance:
- The agency repair carries 10% of the total repair bill for cars less than 10 years old, and 25% of the total bill for cars over 10 years old.
- The panoramic roof, or sunroof, bears 25% of the repair cost of the panoramic roof, or sunroof.
- The airbag and its inclusions shall be charged, and it is estimated at 25% of the cost of repairing the airbag and its inclusions.
- You bear the non-delivery of damaged spare parts, estimated at 2.5% of the cost of spare parts.
- Depreciation is calculated on mechanical, electrical, luggage and car shacman, and starts from 2.5% of the cost of the mentioned spare parts for new cars, and increases based on the car model year.
It is also known that insurance deductibles:
- The deductible is determined in the insurance policy that the insured signs at the beginning of the insurance.
- The higher the in car insurance deductibles of this type, the lower the price of the insurance policy.
- Often, in many types of car insurance policies, the deductible is high if the car will be repaired in the car agency itself, but this clause is based on the insured’s desire to sign or cancel it.
Note that: The supplemental or optional car insurance can be zero if the insured desires, which means that the insurance company will bear all compensation and expenses for any car damage except for the compulsory percentage, but this increases the price of the car insurance policy and makes it very expensive and high.
How much are car insurance deductibles?
As we said previously, there is no fixed value in car insurance deductibles, and to clarify, if the value of the deductible in car insurance is about 1,000 L.E, and the amount owed for repairing the car is about 5,000 L.E, the insurance company will pay 4000 L.E and the insured will pay 1000 L.E to repair the car.
Is there a minimum or maximum deductible in car insurance?
There is no minimum or maximum deductible, so the customer must review the terms of the contract well to know the deductibles calculated in the insurance policy.
What if the car insurance deductibles are greater than the car accident?
If the car insurance deductibles are greater than the car damage, the insurance company will not pay any amounts for the repair of the car.
For example, if the amount due to repair the car is about 2000 L.E, and the car insurance deductibles are about 3000 L.E, the insured will pay the full amount of money to repair the car, and the insurance company will not pay any compensation.
Certainly, there are small or tiny damages or losses that can occur to the car, such as breaking the car mirror, which will not cost much, so there is no need for the insurance company to intervene.
What are the factors that may affect car insurance deductibles?
It is possible to agree with the insurance company on affordable car insurance deductibles, and there are some factors that may make the deductible in car insurance high or low, such as:
- The age of the insured driver.
- The value of the insured car.
- The purpose of using the car, whether commercial or personal.
In the end
if you still have any questions about car insurance deductibles, you can contact Tokio Marine Insurance team and we will answer you as soon as possible.