Facts About Voluntary Car Deductibles
Car Insurance

5 Important Facts About Voluntary Car Deductibles

Car insurance can be a bit confusing, with lots of terms to understand. One term you might not have heard much about is the voluntary deductible. But don't worry, let’s break down the concept of voluntary car deductibles for you. Here, we'll explain what is voluntary deductible in car insurance is and why it's important for your insurance. By the end, you'll have a clearer picture of how it affects your coverage and your wallet.

What is Voluntary Deductible in Your Car Insurance?

A voluntary deductible in your car insurance is like a personal contribution you agree to make when you need to claim insurance for any damages. While there are compulsory deductibles set by the insurance company, the voluntary one is your choice.

Think of it as sharing the costs with your insurance provider. If you choose a higher voluntary deductible, it means you're willing to pay more out of your pocket when you make a claim. This decision can lead to paying lower premiums, which are the regular payments you make for your insurance.

For example: Let's say you file a claim for damages worth ₹20,000, and your voluntary deductible is ₹2,000. In this case, your insurance provider will subtract ₹2,000 from the claim amount and give you ₹18,000.

How Does Voluntary Deductible Help in Reducing Premiums?

Choosing a voluntary deductible can be like a balancing act between how much you pay upfront and how much you pay later if something happens to your car. When you go for a higher voluntary deductible, it means you're agreeing to pay more from your pocket if you ever need to make a claim.

But here's the catch: by taking on more of that risk yourself, you can actually pay less each month for your insurance. Insurers see it as a sign that you're pretty confident in your driving skills and less likely to have accidents. So, if you've got a good track record on the road and feel pretty confident behind the wheel, choosing a voluntary deductible could mean saving money on your premiums each month.

5 Important Facts About Voluntary Deductible in Car Insurance

  • You Need to Pay the Voluntary Deductible Only if You Make a Claim:

    When you go for a voluntary deductible, you're agreeing to pay a certain amount out of your own pocket if you ever need to make a claim. The good news is, you only have to pay this amount if you actually make a claim. So, if your car stays safe and you don't need to use your insurance, you won't have to pay the deductible at all. This means you're not spending money on something you might never need.

  • Voluntary Deductible Is Not the Same as Co-payment:

    It's important to understand that a voluntary deductible is different from a co-payment. With a co-payment, you usually pay a percentage of the claim amount, but with a voluntary deductible, you agree to pay a fixed amount upfront. So, while a co-payment can vary depending on how much your claim is worth, your voluntary deductible stays the same no matter what.

  • Voluntary Deductible Is Not an Additional Expense:

    Some people worry that choosing a voluntary deductible will mean paying extra on top of their regular premiums. But that's not the case at all. When you opt for a voluntary deductible, you're simply adjusting how much you're willing to pay if you need to make a claim. It's like choosing a higher excess on your car insurance – it might mean more out of pocket if something happens, but it can also mean lower premiums overall.

  • The Compulsory Deductible Is Not Eliminated Even if You opt for Voluntary Deductible:

    Even if you choose a voluntary deductible, you still have to pay the compulsory deductible set by your insurance company. This is a standard amount that applies to all policies and helps cover the insurer's costs. So, when you make a claim, you'll need to pay both the compulsory and voluntary deductibles before your insurer covers the rest.

  • Opting for a Voluntary Deductible Is Not Always Beneficial:

    While going for a voluntary deductible can save you money on your premiums, it's not always the best choice for everyone. If you live in an area with lots of accidents or have a history of making claims, a higher deductible could end up costing you more in the long run. It's important to weigh the potential savings against the risk of having to pay more if something goes wrong.

Should You opt for a Voluntary Deductible or Not?

The decision to go for a voluntary deductible hinge on individual risk appetite, driving habits, and financial considerations. While it offers potential premium savings, it also has higher out-of-pocket expenses during claims. Thus, car owners should assess their risk exposure and financial capability before choosing a voluntary deductible.


In conclusion, choosing the right voluntary deductible can really help you manage your car insurance costs effectively.

If you're looking to boost your car insurance, SBI General's Private Car Insurance Policy - Package is a great choice. It covers everything from minor damages to major accidents, and with a high claim settlement ratio and a wide network of cashless garages, you're in good hands.

Interested in worry-free driving with top-notch coverage? Give SBI General's car insurance a look-it might just be the perfect fit for your needs!


What is difference between Does a Voluntary Deductible vs Compulsory Deductible?
Compulsory deductibles are predetermined by insurers and mandatory for all policies, while voluntary deductibles are chosen by policyholders and affect premium costs.
Read more:Compulsory vs voluntary deductible in car insurance: What are the differences?

Will Opting for a Higher Voluntary Deductible Result in Lower Premiums?
Yes, selecting a higher voluntary deductible typically leads to reduced premiums, as policyholders assume a greater share of the claim burden.

How Does a Voluntary Deductible Impact the Claim Settlement Process?
Policyholders must pay both compulsory and voluntary deductibles upon claiming insurance benefits, influencing the final settlement amount.

Will My Voluntary Deductible Reset If I Make a Claim?
No, voluntary deductibles in car insurance remain unchanged unless adjusted by the policyholder during policy renewal.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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