Deductible is a term frequently used in the insurance industry. Here you can find out exactly what it means, when it applies and in which MAWISTA tariffs deductibles are included.
1. What does the term deductible mean?
The term deductible means that the policyholder has to pay a contractually agreed amount by himself in the event of an insured case. The difference in the cost of the claim is paid by the insurance company. Alternative terms for deductible are self-participation or self-contribution.
2. What are the advantages of a deductible for the policyholder?
A deductible scares many people off at first. However, a major advantage of insurance with a deductible is that it enables lower insurance premiums.
The cheaper insurance premiums are possible because the insurer does not have to pay for the entire risk of a claim. The policyholder co-finances damages within a contractually defined framework.
In addition, deductibles usually lead to policyholders being more cautious and reporting fewer claims. This reduces the processing costs for insurers, which in turn has a positive effect on the level of insurance premiums.
3. What are the different forms of deductibles?
There are two different forms of deductible. The relative and the absolute deductible.
With the relative deductible , the policyholder co-finances the damage in the amount of a contractually fixed percentage. With this variant, the policyholder contributes a certain percentage to the damage incurred. Often, a lower and an upper limit are also set.
In the case of an absolute deductible , the policyholder co-finances the damage in the amount of a contractually fixed sum. For the policyholder, possible costs are thus particularly easy to calculate.
4. In which cases does a deductible apply?
A deductible always applies if a claim is made. If the costs incurred are within the agreed amount of the deductible, the policyholder bears the costs in full. If the costs exceed the amount of the agreed deductible, the insurer pays the difference in costs.
For example, if a policyholder of the Student Classic tariff incurs a claim in the amount of € 679.13, the policyholder bears € 50.00 of this amount himself/herself. The difference of € 629.13 is paid by the insurer.
In the case of Expatcare in the USA or Canada, the policyholder submits all bills as usual. As soon as the self-support of € 500.00 is reached, the insurer will reimburse the difference that arises until the end of the insurance year.