Deductible excess

A liability insurance provides coverage for damage that you may cause to someone else or other people’s belongings. When taking out a liability insurance, your insurer can charge a deductible in the event of damage or offer the option, for a premium discount, to opt for a deductible. Why is it wise to take out a liability insurance? And what is the deductible regarding to a liability insurance? And finally: which insurers are obliged to charge this deductible in the event of damage?

Why a liability insurance?

Although a liability insurance is not mandatory, it is possible that you yourself have to pay for large amounts of damage. After all, as a student you are fully active on many fronts: study, a part-time job, a busy social life, sports and other hobbies. In addition, you are often on the road from A to B. In all these activities you may not immediately think of risks, but an accident can still happen very easily. Just think of damage that you might cause to the furniture of another student during a party or a can of soda that you accidentally knock over the laptop of your fellow student. A liability insurance is therefore not a superfluous luxury for a student.

What is the deductible excess for a liability insurance?

The deductible excess of a liability insurance can be compared with the deductible that is mandatory for the basic health insurance. The deductible is the part of the claim amount that must first be paid by yourself, as the insured person. An example: the deductible with your liability insurance is € 100. While cycling, you collide with a fellow student which causes damage to his bike. The damage amount amounts to € 250. You have to pay the deductible excess of the damage amount, which means that you will be reimbursed the remaining € 150 through the insurance.

Which liability insurers use a deductible excess?

At the moment there are only three liability insurers that are obliged to use a deductible when taking out this insurance. This concerns HEMA, FBTO and Inshared, which all charge a mandatory deductible of € 100 in the event of damage. Only at FBTO can you buy off the deductible by paying 10% more premium. By a third of the liability insurers you can opt for a voluntary deductible. This means that you consciously choose a deductible and in return you receive a discount on your premium for the liability insurance. This option is also possible with insurance companies AEGON and Ditzo.

Is the premium discount worth the deductible?

The premium amounts per month for a liability insurance vary on average between € 2.50 and € 5.00 per month. Although the discount percentage can be relatively high, the amount is very low and the annual discount is between € 6 and € 14 on average. The moment you have damage, it is annoying that you have to pay a part of it yourself first, due to a chosen deductible excess. As a student, you must make this assessment yourself. Although the discount can be attractive, it is important to remember that you must have a piggy bank to be able to pay the deductible excess in the event of damage.

Curious about the various liability insurance policies with or without deductible excess? View the top 5 liability insurance policies here, select the desired coverage and choose the option for own risk or not for a clear comparison.