One of the issues often asked by those who are thinking about getting car insurance to insure their car is car insurance with an exemption. The car insurance waiver app stands out as an app that is attracting the attention of both those trying to reduce their annual car expenses and those who want to get car insurance. So, what exactly does exempt insurance mean?
What is exempt insurance?
This practice, also known as "insurance waiver," is to cover the insured for a certain amount of damage within the scope of the policy if the vehicle you insured is damaged. The factor that determines the amount that must be paid by the insured and the insurance company is the auto insurance exemption rate determined as a result of mutual agreement.
In order to learn more about exempt insurance, it is useful to take a look at the features of the insurance in question and how it is applied.
What are the advantages of applying for a vehicle insurance exemption?
It is very important to know the amount of vehicle insurance exemption written in the auto insurance policy and which party will pay the amount in the event of damage. Because in exemption policies, insurance companies pay the rest of the damage amount after deducting the exemption rate specified in the policy. The portion of damage equal to the exemption rate is paid by the insured.
The most important difference in exempt insurance from standard insurance is that both parties pay for the damage to the vehicle. For this reason, exempt insurances are more affordable. If the insurance is non-exempt, only the insurance company will pay for the damage. Of course, we should not forget that the insurance premium will be higher in this case.
There are different exemption methods such as deductible and integrated exemption in auto insurance policies. However, the most commonly used method is the deductible exemption.
Request for deductible exemption
A deductible is a deduction of an amount specified as a percentage or amount from the amount of damage. It may be decided to deduct 2% of the car price provided that it is not less than ') from the amount of damage. If damage occurs, the insurance company pays the rest by deducting the price or amount written in the policy from the damage.
Benefits of insurance exemption
One of the biggest advantages of applying for exempt insurance is that the premium is lower than other types of insurance. The higher the exemption rate, the lower the premium.
When there is an exemption in your auto insurance policy, make sure your policy includes “small repair” coverage (coverage that can be added to the policy for minor damage) so that the no-claim deductible for minor damage is not affected. Also, if you don't know what a no claims discount is, "What is a no claims discount? What is a no claims discount? You can check our article.
If an appropriate exemption rate or amount is determined between the insured and the insurance company, the insurance company pays the major damages while the insurance owner pays the minor damages. Thus, the insured person secures his budget. In addition, for minor damages, the insured person can make payment without having to wait for insurance procedures to cover the damage.
Insure your car with Mapfre Insurance
You may not know when or what will happen to your car. For this reason, we recommend that you insure damage to your vehicle within the scope of your insurance policy. In addition, if you do not know the value of your car insurance, to familiarize yourself with the topic, “Good to know: How to calculate.