Buying a voluntary deductible for my insurance policy car.

Buying a car for the very first time gives a sense of joy and excitement. It is in itself an achievement. One has to keep a lot of points in mind while doing the research on which is the perfect car for a family. The size of the family matters at first. So, one has to prioritize the needs accordingly. Then comes the car selection. It can be a hatchback, sedan, SUV (Sports Utility Vehicle), MPV (Multi-Purpose Vehicle). Then comes the budget and comfort. 

Things don’t stop here. The most important factor that we usually underestimate is car insurance. The basic and the most important thing to do after registering the car. One cannot leave the car uninsured.

Opt for the right car insurance.

Choose your policy and components wisely. Look into a few options before settling on one. Compare at least 2 policies. The car insurance policy is categorized into:

• Third Party Liability: This is the most basic insurance policy. Third-Party liability covers legal responsibilities when you commit an accident while driving. Vehicle damages are not covered in this policy.

• Comprehensive Insurance: Comprehensive Insurance as the name suggests includes protection against theft, vandalism, natural calamities, fire etc. This covers damages to cars in case of road accidents as well. You can enhance the policy by putting add-ons like nil depreciation, NCB protection, and engine safety.

What are deductibles?

This is the amount the insured has to pay while claiming the policy. Rest of the amount is covered by the insurer. Just to make it simple with an example, say you have claimed the company of ₹ 30000 and the deductible of the policy is ₹ 10000. The insured will pay ₹ 10000 towards the repair costs and the remaining amount which is ₹ 20000 will be borne by the company. This important feature makes a huge impact on the claims made. There are two types in deductibles, compulsory and voluntary. 

The compulsory deductible is mandatory as per IRDAI (Insurance Regulatory and Development Authority). It is a fixed amount you have to pay every time you make a claim. The amount is dependent on the capacity of the car’s engine. It may range from ₹ 500 to ₹ 2000. The deductible increases if the car is old.

The voluntary deductible is an optional excess. It is is an addition to your compulsory deductible. is an addition to your compulsory deductible. The policyholder can preset the value that he would be voluntarily paying from his pocket at the time of claimed repai₹ It works as an advantage in case you haven’t claimed in the former yea₹ If the voluntary deductible is high the insured gets a higher discount. This also results in reducing the car premium. For instance, your voluntary deductible is ₹ 5000 and the compulsory is ₹ 500. You need to pay an amount of ₹ 5500 to claim in case of an accident. Few declarations as use of the car, variant of a car, fuel type make a difference in the premium as diesel cars come with a cost of 10%-15% of the increased premium. Clean driving records can help you get a maximum of 10% discount.  A person with mature driving skills can go ahead and opt for a voluntary deductible.