avdragsfeste

Avdragsfeste is a Swedish term that translates to "deductible" in English. It refers to the amount of money an insured person must pay out of their own pocket before their insurance company begins to cover the remaining costs of a claim. This concept is common in various types of insurance, including vehicle insurance, home insurance, and health insurance.

The purpose of an avdragsfeste is to share the financial risk between the insurer and the insured. It also serves to discourage small, frivolous claims, as the insured would have to bear the cost of the deductible. A higher avdragsfeste generally leads to lower insurance premiums, as the insured person is taking on more of the financial responsibility for potential claims. Conversely, a lower avdragsfeste will typically result in higher premiums.

When an insured event occurs, such as a car accident or damage to a property, the insured person first pays the agreed-upon avdragsfeste. The insurance company then covers the costs exceeding this amount, up to the policy's coverage limit. For example, if a car owner has an avdragsfeste of 5,000 SEK and their car sustains 20,000 SEK in damage, they would pay the first 5,000 SEK, and the insurance company would pay the remaining 15,000 SEK. The specific amount of the avdragsfeste is agreed upon when the insurance policy is taken out and is clearly stated in the policy documents.