Insurance terminology explained in simple terms
A deductible(also known as an excess ) is understood in the insurance sector to be the financial portion that the policyholder themselves has to pay in the event of a damage. The deductible usually applies for each damage event.
A distinction is made between an absolute or fixed deductible (e.g. 250 euros per damage event) and a percentage deductible (e.g. 5 percent per damage event). Combinations of these regulations are also possible, for example a 5 percent deductible, but at least 250 euros per damage event.
For the policyholder, a fixed (absolute) deductible is easier to calculate and plan. With a few exceptions, exali only has fixed deductibles that are displayed transparently in the online calculator.
Why Is There a Deductible?
With a deductible, the insurer can avoid disproportionately high claims settlement costs in the event of minor damage. In addition, regulations deductibles strengthen the policyholder’s personal responsibility and curb an increase in the probability of damage and/or the amount of damage caused by the incentives of the insurance company. This is in the interest of all policyholders, as it allows insurance premiums to be calculated more cheaply.
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