Deductibles, co-insurance and exclusions: what to look at
Three terms that shape what a policy really pays. Understanding them before you choose avoids surprises when you need the cover most.
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Two policies with a similar name and a similar price can behave very differently when something happens. Much of the difference often lies in three elements: deductibles, co-insurance and exclusions.
Deductible
A deductible is a fixed amount that remains at your charge for each claim. If the damage is lower than the deductible, the policy does not pay; if it is higher, the deductible is subtracted from the amount paid. A higher deductible usually means a lower premium, but also a larger share of each event to cover yourself.
Co-insurance
Co-insurance is a percentage of each claim that remains at your charge, sometimes with a minimum amount. Unlike a fixed deductible, it grows with the size of the damage. It is worth checking how it combines with any deductible in the same policy.
Exclusions
Exclusions describe situations the policy does not cover at all. They are often listed in a dedicated section of the general conditions, but some can also appear in the definitions or in specific clauses. Reading them carefully is the best way to understand the real perimeter of a cover.
Some questions to ask
- How much would remain at my charge in a typical claim?
- Are there different deductibles for different types of event?
- Which exclusions are most relevant to my activity or my situation?
- Are there limits per claim or per year that I should know about?
This guide offers general information only. The terms that apply are always those written in each contract.