Published on : 29 January 20203 min reading time
The car rental deductible is an essential element to consider for anyone wishing to rent a vehicle, the contracts have an aspect concerning the insurance of the good and often provide for a high deductible. The deductible is available through different terms and requires a small investment on the part of the lessor to understand how it works.
The deductible: what you need to know
Vehicles with a significant purchase price directly include a deductible representing the proportion of breakage not covered by the insurer, in other words, the car rental deductible corresponds to the amount remaining to be paid after the insurance company has paid the costs of repairs for an at-fault accident. However, the main purpose of the rental deductible remains to make the drivers responsible by making them participate in the financing of the vehicle repairs in the event of a claim.
The insurance company chosen by the renter nevertheless undertakes to cover the costs of repairs, but the driver will be required to pay a certain amount which will not be reimbursed by the insurance institution.
Simple or absolute?
There are 2 terms of deductible used in car rental and are as follows: the “simple” deductible corresponding to the amount to be paid by the driver when the repair costs are lower than the deductible to be paid. For example, a rental deductible amounting to 1000 € with an estimated damage of 200 € will automatically characterize the expenses to be paid by the driver, i.e. 200 €. The “absolute” deductible reflects the amount paid by the insurance company if the total amount of repairs exceeds the deductible. Still in the example of an excess of €1000 and a repair estimated at €1500, the driver will be obliged to pay an excess of €1000 and the insurer will pay the difference, i.e. €500.
Repurchase of excess
In order to prevent this type of relatively high financial risk, it is advisable to take out optional insurance that can cover all or part of any repairs following an at-fault claim. Deductible buy-back eliminates the need to reimburse costs and is still offered by a significant number of rental companies. However, the amount of the deductible reduction varies according to the lessor and an individual wishing to take out a subscription must pay closer attention when reading the contract as this option is only available through the purchase of a daily pack for the entire rental period.