Car insurance deductible: how does it work?

Verified 14 March 2022 - Directorate for Legal and Administrative Information (Prime Minister)

If you have an accident with your car, the insurance may not reimburse you for all the damage suffered. The amount that remains at your expense after the insurer's compensation is called the frankness. In order for the insurer to apply the deductible to you, this must be provided for in the insurance contract. There are several types of franchises. The contract must specify, for each situation, the type of franchise that applies.

General case

Depending on the contract, the deductible may be relative or absolute.

Franchise relative or simple is the one which determines the intervention of the insurer, according to the amount of the claim.

If the amount of the claim is less than the deductible, you will not be compensated.

But if the amount of the claim is greater than the deductible, you will be fully compensated.

Example :

If the deductible is €150, you will not receive anything if the claim is €100. However, for a disaster of €200, you will be reimbursed in full.

The absolute deductible is the deductible that the insurer systematically deducts from your compensation in the event of a loss.

Example :

If the deductible is €150 and that the disaster is €100No, you won't get anything. If the claim is €200, only the difference, that is €50, will be paid to you.

The deductible may be a fixed sum, for example €150, or an amount calculated according to one of the following 2 methods:

  • Percentage calculation: The deductible is a percentage (for example 10% of the amount of compensation)
  • A combination calculation of a fixed amount and a percentage (for example 10% the amount of compensation, with a maximum of €300)

Natural disaster

If the loss is due to a natural disaster, the deductible is €380.

Please note

where the vehicle is for professional use, the deductible applied shall be that indicated in the contract, whichever is higher.

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