Understanding Deductibles in Car Insurance (Förstå självrisker i bilförsäkring)

One of the most important yet often misunderstood aspects of car insurance is the deductible (självrisk in Swedish). Understanding how deductibles work can help you make more informed decisions about your coverage and potentially save money on your premiums.

What is a Deductible?

A deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in to cover the remaining costs of a claim. For example, if you have a deductible of 3,000 SEK and file a claim for 15,000 SEK in damages, you would pay the first 3,000 SEK, and your insurance would cover the remaining 12,000 SEK.

In Swedish car insurance policies, deductibles typically apply to:

• Collision coverage (Vagnskada)
• Comprehensive coverage (Halvförsäkring)
• Glass damage (Glasskada)
• Theft coverage (Stöldskydd)
• Fire damage (Brandskada)

Fixed vs. Percentage Deductibles

In Sweden, car insurance deductibles typically come in two forms:

• Fixed deductibles: A specific amount that remains the same regardless of the claim amount (e.g., 3,000 SEK).
• Percentage deductibles: Calculated as a percentage of the base amount (prisbasbelopp), which is adjusted annually. For 2023, the base amount is 52,500 SEK. A typical percentage deductible might be 5-10% of this amount.

Some policies may use a combination of both fixed and percentage deductibles, depending on the type of claim.

How Deductibles Affect Your Premium

There's an inverse relationship between deductibles and premiums:

• Higher deductible = Lower premium: When you agree to pay more out of pocket in the event of a claim, your insurance company charges you less for coverage.
• Lower deductible = Higher premium: If you want your insurance to cover more of your costs when you file a claim, you'll pay more for that benefit through higher premiums.

This relationship exists because deductibles shift some of the financial risk from the insurance company to you, the policyholder.

Swedish Insurance Terms Related to Deductibles

When reviewing Swedish insurance policies, you might encounter these terms:

• Grundsjälvrisk: The basic deductible that applies to most claims
• Förhöjd självrisk: An increased deductible for specific situations or risk factors
• Särskild självrisk: A special deductible that applies to specific types of claims
• Ungdomssjälvrisk: An additional deductible for young drivers (typically under 24)

How to Choose the Right Deductible

Selecting the optimal deductible amount requires balancing several factors:

Consider Your Financial Situation

Your deductible should be an amount you can afford to pay without significant financial strain. Ask yourself: "If I had an accident tomorrow, could I comfortably pay this amount out of pocket?" If not, a lower deductible might be more appropriate despite the higher premium.

Evaluate Your Vehicle's Value

For older vehicles with lower market values, a high deductible might not make sense. If your car is worth 30,000 SEK, a 6,000 SEK deductible means you're responsible for 20% of the car's value in a total loss situation.

Assess Your Driving Habits and Environment

Consider your driving patterns and where you typically park your car:

• Do you have a long commute in heavy traffic?
• Do you drive frequently in challenging weather conditions?
• Is your car parked on the street in areas with higher vandalism or theft rates?

Higher risk scenarios might justify paying more for a lower deductible.

Review Your Claims History

If you rarely file claims, a higher deductible could save you money over time. However, if you've filed multiple claims in recent years, a lower deductible might be more cost-effective despite the higher premium.

Deductibles in SwedishShield Insurance Packages

At SwedishShield, we offer flexible deductible options across our three main insurance packages:

• Basic Package: Standard deductible of 4,500 SEK for collision and 1,500 SEK for glass damage.
• Standard Package: Reduced deductible of 3,000 SEK for collision and 1,000 SEK for glass damage.
• Premium Package: Our lowest deductible at 1,500 SEK for collision and 500 SEK for glass damage, plus the option to purchase deductible waiver coverage for certain types of claims.

All packages allow for customized deductible amounts to suit your needs and budget.

Conclusion

Choosing the right deductible is a personal decision that depends on your financial situation, risk tolerance, and driving habits. While a higher deductible can lead to premium savings, it also means more out-of-pocket costs when you file a claim.

At SwedishShield, our insurance advisors can help you analyze the trade-offs and select the deductible that offers the best balance of protection and affordability for your specific situation. Contact us for a personalized consultation to optimize your car insurance coverage.