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Insurance

Deductible

The deductible is the amount the policyholder must pay out of pocket before the insurance company pays a claim.

Key Takeaways

  • The deductible is the amount the policyholder must pay out of pocket before the insurance company pays a claim.
  • Deductible belongs to the Insurance category. We explain it step by step for newcomers to Germany.
  • With comprehensive car insurance with a 300 EUR deductible, the insured pays 300 EUR themselves for a parking damage of 800 EUR, the insurance covers 500 EUR.

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Detailed Explanation

The deductible (also called excess) reduces the insurance premium because the insured bears part of the risk themselves.

Types of deductible: - Absolute: Fixed euro amount per claim - Percentage: Share of the claim amount - Combined: Minimum amount plus percentage

Where it applies: - Comprehensive car insurance: 150-500 EUR typical - Private health insurance: Annual deductible possible - Household contents insurance: Depending on policy - Legal expense insurance: Usually 150-300 EUR

Advantages: - Lower insurance premium - Avoidance of minor claim reports - Personal responsibility of the insured

Disadvantages: - Financial burden in case of claims - Not sensible with many small claims

Practical Example

With comprehensive car insurance with a 300 EUR deductible, the insured pays 300 EUR themselves for a parking damage of 800 EUR, the insurance covers 500 EUR.

Legal Basis

§1 VVG (Insurance Contract Act, contractual duties), §193/§203 VVG (deductible in private health insurance) - otherwise the deductible is agreed contractually

Sources & Methodology

Our methodology: the meinetarife24 Editorial Team checks every definition against binding primary data sources and consumer-focused reference portals. We name the relevant legal basis, link related terms and update each entry regularly. We do not sell loans or tariffs ourselves. This explanation is provided purely for information.

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