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Making the Best of Voluntary Deductible in Car Insurance

Neha Gadoo Neha Gadoo 17 February 2017
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Electing Voluntary Deductible on your car insurance is one of the finest approach to save costs on its premium. Yet, how to make the best out of it is the actual challenge.

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If you have planned to purchase a new car, the most obvious question that is bound to haunt you is which insurance would suit your needs the best - affordable and with a successful claim in case of a mishap. Often, insurance is one such thing that stresses the car owners the most. It is not only important to find a reliable insurer, but amidst a web of technology and information it is also expected of us to find the most appropriate insurance cover after easily comparing various quotes.

Once the car insurance is finalized, it is then important to look out for options that would help reduce the premium. There are many ways in which one can considerably save his insurance premium, and easily afford the insurance amount. Opting for a Voluntary Deductible will notably trim your insurance premium.

Voluntary Deductible

Voluntary deductible is the amount that the car owner admit to pay himself towards the repairs of his vehicle at the time of a mishap. It is paid before the policy covers the rest of the amount. Usually, at the start of the policy, the policy holder settle upon his voluntary deductible amount and proceeds with the discounted premium cost. Where the insurer benefits from this service as they have to pay less in the claim; the policy holder in turn saves his premium costs if he cautiously drives during the premium’s tenure.

However one’s voluntary deductible should be only increased as much as one can afford, so that at time of an accident it is easily payable. Both premium and deductible are inversely related, the more one is raised, the lower the other goes.

How Voluntary Deductible Works?

Considering one has a claim amount of Rs. 10,000 and Rs. 500 is the mandatory deductible, along with it the policy holder has declared a voluntary deductible amount of Rs. 1,500. Then his expenses towards the cover of his claim would be Rs. 500 + Rs. 1,500 = Rs. 2,000 while the insurer will cover the rest of Rs. 8,000.

What falls on the line are the vehicle owner’s driving skills. If one is a cautious and alert driver than voluntary deductible can surely be of great help to him.


Electing voluntary deductible can reap the benefits if one is confident about his driving finesse. It is one of the best options to save heavily on the premium charges, and pay less. But irrespective of the fact that a voluntary deductible saves a good chunk of the bank amount, it should not be gambled at an unaffordable price to reduce the premium cost. The voluntary deductible should only be set to the limits that one can afford to pay, such that both the insurance policy and the claim can be easily covered.

Recommended Read: Essential Facts about Voluntary Deductible in Car insurance

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Neha Gadoo
Written by Neha Gadoo
Daring and Bold, Neha loves philosophy, trekking and walking bare feet in the rain. Loves talking and can stare out of a car window for hours continuously.