What is Deductible?
Quick Summary
The deductible (Selbstbeteiligung) is the amount you pay yourself in case of a claim. It reduces your insurance premium and avoids minor claims. The amount should be chosen so that you can comfortably afford it.
Definition in Detail
The deductible (also called excess, out-of-pocket, or franchise in German insurance terms) is a contractually agreed amount that the policyholder pays themselves for each claim. The insurance only pays the amount exceeding the deductible.
The deductible serves two purposes:
- Premium reduction: Higher deductible = lower premiums
- Claim prevention: Small claims are not filed (trivial damages)
Note: Liability insurance usually has no deductible, as the focus is on protecting third parties.
Calculation Example
Example: Comprehensive Car Insurance with EUR 300 Deductible
| Damage Amount | Your Share | Insurance Pays |
|---|---|---|
| EUR 200 | EUR 200 (all) | EUR 0 |
| EUR 500 | EUR 300 | EUR 200 |
| EUR 2,000 | EUR 300 | EUR 1,700 |
| EUR 10,000 | EUR 300 | EUR 9,700 |
Key insight: For small damages you pay everything yourself, but your maximum risk is limited to EUR 300 - no matter how expensive the damage becomes.
Types of Deductible
Absolute Deductible
Fixed euro amount for each claim
- • Predictable and plannable
- • Common: EUR 150, 300, 500, 1,000
- • Standard for car, contents, building insurance
Percentage Deductible
Percentage share of the damage amount
- • Varies with damage amount
- • Often with minimum/maximum amount
- • Common for private health, travel insurance
Combined Deductible
Some insurances combine both types: e.g., 10% deductible, minimum EUR 500, maximum EUR 2,000. This form is often found in commercial insurance.
Impact on Premium
| Deductible | Car Insurance (Example) | Annual Savings | Recommendation |
|---|---|---|---|
| EUR 0 | EUR 600/year | Reference | Expensive |
| EUR 150 | EUR 510/year | EUR 90 | Good |
| EUR 300 | EUR 450/year | EUR 150 | Recommended |
| EUR 500 | EUR 420/year | EUR 180 | Only with few claims |
| EUR 1,000 | EUR 380/year | EUR 220 | High risk |
Rule of thumb: The deductible should pay off through premium savings after about 2-3 years (if no claim occurs).
Pros and Cons
Advantages of High Deductible
- • Significantly lower premiums
- • Fewer claim reports (no-claims bonus)
- • More conscious handling of risks
- • Avoidance of trivial claims
Disadvantages of High Deductible
- • Higher costs in case of claims
- • Financial burden with multiple claims
- • Risk with tight budget
- • Psychological barrier to reporting
Frequently Asked Questions
What does deductible mean in insurance?
The deductible is the amount you must pay yourself in case of a claim before the insurance covers the rest. With a EUR 300 deductible and EUR 1,000 damage, you pay EUR 300, the insurance pays EUR 700.
How high should the deductible be?
The ideal amount depends on your financial situation. Rule of thumb: Choose an amount you can comfortably afford. For car insurance, EUR 150-300 is common, for contents insurance EUR 250-500.
Is a high deductible worth it?
Yes, if you rarely have claims. A higher deductible significantly reduces your premium. With car insurance, you often save 15-25% of the premium by choosing EUR 300 instead of EUR 150 deductible.
What is the difference between absolute and percentage deductible?
Absolute deductible: Fixed amount (e.g., EUR 300). Percentage deductible: Share of the damage (e.g., 20%). The absolute variant is more predictable, the percentage can become more expensive with large claims.
Are there insurances without a deductible?
Yes, but they are significantly more expensive. Liability insurance usually has no deductible. For comprehensive car insurance, a variant without deductible is possible but often not economically sensible.
Legal Notice
The deductible is defined in the insurance contract (according to VVG). It must be clearly communicated before the contract is concluded. A change during the contract period is only possible with the consent of both parties. Status: February 2026.