What is the excess in car insurance?

When we talk about car insurance, it is common to hear the term franchise, but what exactly is it, and how does the car insurance franchise work? Next, we explain everything you need to know.

Excess insurance, how does it work?

When contracting car insurance, we usually choose between one with or without a franchise. Excess insurance is a type of car insurance in which the driver must assume the payment of a certain pre-established amount in the event of an accident. Therefore, the insurance deductible will be precisely that fixed amount that will be borne by the insured.

The value of this deductible is agreed upon between the insurance company and the insured when contracting the insurance so that you can better understand how the deductible works in car insurance.

Although paying the franchise with each part may seem like a disadvantage, the truth is that it is usually beneficial from an economic point of view. The insurance premium with excess is more affordable, so, as long as there are not too many parts, the total amount paid by the user in the long term is lower than that of insurance without excess.

What does excess insurance cover?

The deductible does not affect insurance coverage, but rather the amount paid by the insured is given a part. Regarding the civil liability of the guaranteed, car insurance with excess offers a comprehensive range; Only if it is own damage will the franchisee be applied. Damage to third parties, however, would be covered.

If you suffer an accident and this has been your responsibility, the corresponding deductible will be applied. It may also happen that the damages of the said accident are valued below the amount of the franchise, in which case, as the insured, you would have to assume the cost of repairing them. However, the situation is different in the event of a total loss, since in these circumstances, the excess will not be deducted from the compensation value.

In short, it is essential to note that, although paying a car insurance deductible usually reduces the amount of the premium, it does not imply that you have to give up any coverage.

What is comprehensive insurance with the franchise?

Comprehensive insurance is a type of car insurance whose policy covers both damages to third parties or civil liability and own injuries. It is possible to include other types of additional services.

Therefore, if we talk about comprehensive insurance with excess, we will have these same coverages, but, in case of own damage, the insured will have to assume the amount agreed as excess. As we have already seen, the rest will be carried by the insurance company.

In summary, the coverage is the same as that of conventional all-risk insurance; the difference will be in the price and the possible expenses derived from an accident for the insured.

Fully comprehensive insurance with Volkswagen Financial Services franchise

One of the complete insurance options at Volkswagen Financial Services is precisely the comprehensive insurance with excess. This is a very profitable modality, since, in the event of an accident, the excess contracted will be reduced by 50% if you repair the damage in one of our official services (up to a minimum of €180).

This insurance can be contacted immediately when obtaining a vehicle with financing so that you can split the insurance fee throughout your contract. You can also contract this modality within Long Drive Service and after-sales service that offers you complete maintenance and insurance plan for your vehicle.

I have lost my card points, now what?

At Volkswagen Financial Services, we want to guarantee your peace of mind, and there is no better way to do this than to be prepared for any unforeseen event. That is why we offer you the possibility of complementing your insurance with Our Card Withdrawal Insurance, which will provide you with the protection you need if, for any reason, you suffer a temporary loss of your card.

If you lose the points on your driving license, you will have to carry out a series of procedures to recover your support. Once the corresponding deadlines have elapsed, you will have to present yourself to a road awareness, and re-education course in a center arranged by the DGT and pass a theoretical exam related to its contents.

Thanks to this type of insurance, you will be able to enjoy financial aid to pay for the said course and, if you are also financing your car with us, you will not have to worry about the monthly fee until you recover the points.

It is a service that is fully compatible with your insurance coverage with excess, and you can include the fee for this insurance in the same vehicle financing receipt.

Now that you know what an insurance deductible is and all the solutions Volkswagen Financial Services offers you for your protection. That of your car, don’t hesitate to choose the insurance that best suits your needs and complement it with insurance such as card withdrawal anticipates any unforeseen event.