How the deductible is applied in an All Risk Car Insurance
When we buy a new car, one of the things we must consider is to take out a Comprehensive Car Insurance . It is the best protection for a brand new car and, in addition, we can lower the premium if we take out Car Insurance with Excess . You know how it works? Are you clear about how you can save money by contracting the excess with Automobile Insurance? Do not stop reading: in this post we explain it to you.
As we mentioned, when you get a new car it is convenient to take out a policy that includes Own Damage coverage . And now that you have your new car, you may be wondering what comprehensive insurance covers . In the event of an accident during the first years of the vehicle, the insurer will cover the loss of the vehicle and for this it will have to calculate the total loss value of your car in an accident , that is, at the price it cost when leaving the dealership. And this compensates you.
All Risk Insurance is the policy that offers the most protection, but it is also the one with the highest premium. The higher the risk covered, the higher the cost of the Insurance. However, it is worth taking out this type of policy when it comes to insuring a newly purchased car , and in many cases it is being paid in installments with financing.
However, there is a very interesting option for those people for whom an All Risk is expensive. It is the All Risk Insurance with Excess , which allows lowering the cost of the policy without losing coverage, sharing the risk of suffering an accident between the insurance company and the client.
What is an All Risk Insurance with Excess?
The franchise in Car Insurance allows the price to lower the price of the policy without giving up the coverage offered by an All Risk, but with the condition that the client assumes part of the risk in the event of an accident.
When an Excess Insurance is contracted , the insured automatically obtains a discount on the policy. This is the main advantage of the franchise and the reason why it is very common for us to find franchises in All Risk Car Insurance policies.
On the other hand, this franchise is the amount of money that the policyholder must assume when an accident occurs that causes damage to the car and is not the responsibility of a third party.
That is, in an accident in which the insured is responsible for the claim, the damage to the car insured with an All Risk Insurance is covered, but the policyholder must pay part of these repairs, specifically the amount of the excess that appears in the conditions details of the contract.
How does a Car Insurance with franchise work?
The operation of the excesses in the All-Risk Car Insurance is simple: Contracting an Insurance with Excess allows you to obtain a discount on the price of the policy, and the higher the excess, the cheaper the Automobile Insurance .
But, of course, having an Insurance with Excess means that the holder bears part of the expenses derived from an accident, up to the amount or percentage of the excess agreed in the contract. The greater the excess amount, the higher the maximum limit to be paid in the event of an accident and the further the policy coverage threshold will be.
What does it mean to have an insurance franchise?
To further clarify what the franchise entails when insuring a car , it is very revealing to know that in All Risk Car Insurance we can find franchises from 100 and 200 euros to 600 euros or more, depending on the car and the Insurance contracted.
This means that, if we have an accident without third party liability and our car insured at All Risks with an excess policy is damaged, the All Risks Insurance with Excess will cover the damages that exceed the limit of the established excess.
If the franchise is 600 euros, for example, the first 600 euros will have to be paid by the policyholder. That means that, when the repair of the damaged car exceeds that figure, the insurer will take care of the rest. But the policyholder assumes the entire franchise.
In addition, if it is a small repair, the Insurance may be free to pay anything because the cost of the claim is below the excess limit.
In the same way, it may happen that during the annuity that the Insurance lasts there are no claims that cause damage to the car or that the reports that are presented are due to accidents in which the person responsible is another vehicle. In these cases, the insured takes advantage of the reduction in the price of the policy without paying anything.
The insurance deductible applies to each claim
In Car Insurance with Excess it is very important to take into account how the excesses are applied in each claim. It might be thought that the deductible that we negotiate applies to all claims that occur during the year that the policy is renewed, but this is not the case.
It must be taken into account that the excess is applied in full in each accident suffered by the vehicle throughout the validity of the Car Insurance.
In this way, if we present several parts during the year, and in each claim there are damages that do not reach the agreed excess, the insured will have to pay all these expenses out of pocket, even if the sum of the damages generated by all these claims exceeds the franchise amount.
However, it is advisable to carefully read the conditions of the policy to be clear about the application that our company makes of the franchise.
In addition, it is advisable to find out if there are services or guarantees included in the Car Insurance offer that are outside this system and are applied free of charge.
When is Car Insurance with excess cheaper?
Saving with the Car Insurance deductible depends on the accident rate and the type of policy that we take out. In an All Risk with Excess you pay less for the discount that is applied to the Insurance , but we will only really save if we do not have to give parts to the insurer that force us to pay for car repairs, within the limit of the excess.
On the other hand, if we have a bad year and suffer breakdowns or blows that we cannot predict, that saving may go to the workshop.
As we mentioned at the beginning, the All Risk Insurance with excess is more recommended to insure cars up to two years old . In addition, it is especially interesting for drivers who have a low accident rate or who drive a few kilometers a year.
Theoretically, in this situation the car is insured with the maximum coverage and the client does not present a profile that suggests that several parts will be chained throughout the year.
Save with Car Insurance without excess
In certain cases, depending on the use we give the car and the risk of suffering an accident, it may be better to take out Insurance without excess and seek savings by comparing Cheap Car Insurance , in which it is possible to adapt the coverage to personal circumstances. each.
From our Insurance broker we can help you compare policy offers, until you find the one that best suits your pocket, without losing the protection you want for your vehicle.
Just by filling out a form from the Insurance comparator, we get down to work to offer you an affordable Car Insurance quote , with the best coverage.
In addition, we advise you on the choice of coverage, helping you to choose between the different types of Insurance available to you , whether it is All-Risk Car Insurance, with or without excess, or extended Third Parties . You will see that you can save on Car Insurance , whether or not it has a franchise.