Exemption is the amount of money, which the insured pays in each loss and which is deducted from the final amount of compensation.
Exemptions are provided for specific coverages in most insurance policies. In these coverages, the amount of the exemption is usually listed on the first page of the insurance policy, in the benefits table or even in the terms of the insurance policy.
Usually the large exemptions in the insurance policies, significantly reduce the premiums of the contract, ie the insured buys an insurance policy cheaper. But when a loss occurs and compensation is demanded, then the big exemptions he had chosen in his contract to buy it cheap, will cost him dearly because he will have to pay large sums of money out of his own pocket.
For example, when the insurance policy states an exemption of 1000 euros, it means that in case of damage greater than this amount, the insured pays 1000 euros and the contract pays the remaining amount up to the maximum limit of insurance coverage. However, if the damage is less than 1000 euros, then the contract does not participate at all and only the insured pays the damage.
When the insured chooses an exemption in his contract, he should have understood its usefulness and how to participate in any damage.
Find out in detail from the ombudsman and your company.
