KASKO Deductible: How It Works and How to Choose the Right Amount
When choosing KASKO insurance for your car, one of the first questions that comes up is the deductible, also known as the excess. This term often causes confusion, especially for first-time buyers. Yet understanding the deductible is essential because it directly affects both your policy price and the amount you will receive after a claim.
The deductible is the amount the policyholder pays out of pocket before the insurer begins covering the loss. For example, if your deductible is 150 euros and the repair costs 800 euros, the insurer will pay 650 euros. If the damage is less than the deductible, the insurer makes no payment and the driver covers the cost.
How the deductible affects the policy price and claims
The relationship between the deductible and the premium is straightforward: the higher the deductible, the lower the premium, and vice versa. By choosing a higher deductible, you take on a larger share of the risk, so the insurer offers a lower price. If you want a minimal deductible or a policy with no excess, the premium will be significantly higher.
This balance is personal. Experienced drivers who rarely have incidents may find a higher deductible more cost-effective because they seldom use their policy. Less experienced drivers may prefer a lower deductible for peace of mind, knowing the insurer will cover most of the loss.
It is also worth noting that some insurers set different deductibles depending on the type of incident. For instance, theft or windshield damage may have a different excess than a collision or natural disaster. Before purchasing KASKO insurance, review the terms carefully so there are no surprises when you need to file a claim.
Some insurers also offer a progressive deductible that decreases if no claims are filed during the policy period. This model can motivate safer driving and help reduce costs in subsequent periods.
Another aspect often overlooked is the deductible's impact on minor damage. If the excess is high, small scratches or dents may remain uncovered because the repair cost falls below the deductible threshold. Consider how often you encounter minor damage before deciding on your excess level.
How to choose the right deductible for your car
When choosing the deductible amount, consider several factors. First, evaluate your driving experience and risk level. If you drive daily in city traffic where minor bumps are relatively common, a lower deductible may make more sense. If you mainly drive on highways and incidents are rare, a higher deductible can help save on the premium.
Second, think about the car's value and age. Newer and more expensive vehicles typically have higher repair costs, so a lower deductible may be more reasonable. For older cars with a lower market value, a higher deductible may be acceptable because potential repair expenses tend to be smaller.
Third, compare offers from several insurers. Each company has its own approach to the deductible, and the differences can be significant. Using the OCTA calculator or consulting a broker gives you a quick overview of available offers and lets you compare not just prices but also terms.
If you are an experienced driver and want to save on the premium while keeping protection against major losses, a higher deductible can be a good compromise. However, if you prefer certainty that any damage will be covered with minimal out-of-pocket cost, choose a lower excess.
Beyond KASKO, it is worth considering other types of insurance that can protect you and your family. For example, accident insurance provides financial protection in case of injury, whether the incident happens in traffic or elsewhere.
To find the best KASKO offer with the right deductible, get in touch with the Agento team. We will compare offers from multiple insurers and help you choose a policy that truly matches your needs at no extra cost. Book your free consultation today!