Important Facts You Should Know About the Voluntary Deductible in Car Insurance

Of late, car insurance companies in India have been customizing car insurance policies for varied reasons. It is done either to maximize the protection or increase the driver’s responsibility to be cautious while driving. Both ways, it is you, the car owner, who will benefit a lot! Voluntary deductible is one such feature introduced by the insurers for your long-term benefit. It will save you a lot of money and ensure protection to your car at the same time! You can use the car insurance premium calculator online to compute the premium with different deductibles. Let’s understand voluntary deductible in car insurance in some detail.

What is a Deductible?

A deductible is a fixed amount that you will have to pay from your pocket in case of a claim. For example, if the total claim comes to ₹10000 and the deductible is ₹4000, the insurer will pay you the remaining ₹6000. There are two types of deductibles.

  1. Compulsory deductible: It is a predefined amount set by the insurer for an insurance claim that you are liable to pay.
  2. Voluntary deductible: It is an amount you will decide based on your affordability and risk.

 In case of a claim, you have to pay both compulsory and voluntary deductibles.

Things You Should Know about Voluntary Deductible

Voluntary deductible in insurance of a four-wheeler has the following features:

  1. There is an inverse relationship between voluntary deductible and the premium amount you have to pay. The more your voluntary deductible amount, the lesser your premium. Before purchasing car insurance, you can use the car insurance premium calculator and decide on the amount of voluntary deductible according to your capacity for an affordable premium.

The voluntary deductible will have to be paid upfront when you have raised a claim, and the insurer has approved it.  As you can choose the deductible according to your preference if you are a skilled and cautious driver the deductible can be determined at an optimum level. Therefore, it will account for a good savings amount while staying insured in the long term.

  1. Voluntary deductible is not an additional expense. It is an amount that will be subtracted from the total claim raised before the insurer pays the remaining amount. You can check the car insurance details before filing a claim.
  2. Voluntary deductible in car insurance and co-payment are not the same. Voluntary deductible is fixed and remains the same throughout the policy term. For example, if your voluntary deductible is ₹5000, it is the same for a claim of ₹10,000 or ₹50,000. On the other hand, co-payment is the amount you share with the insurer to pay as a part of the claim. The amount for co-payment is decided during the claim settlement and varies based on the total claim. It will be based on a fixed percentage and depends on the policy terms of the insurer.
  3. Voluntary deductions and the No claim bonus are not the same. No claim bonus is a type of reward or discount that your insurer will provide when you do not make any claim for your car in a year. It will reduce the premium amount for the next policy period by a certain percentage. On the other hand, a voluntary deductible is considered only when a claim is filed and approved. And, unlike the no claim bonus, the voluntary deductible lowers the premium amount throughout the policy term and not only when a claim is filed.
  4. If you are just learning to drive, a high deductible is not advisable. Your car would be prone to accidents resulting in damage that require frequent repairs. You will be spending a significant amount whenever you file a claim.

It is important to choose the amount for voluntary deductible wisely. Besides your capacity to pay yourself, it will depend on your driving skills, the experience of on-road driving, the kind of trips you make, and the areas where you drive normally.

Go for a higher voluntary deductible only when you have become a somewhat experienced driver. It will help you in the long term. Do not opt for it if you frequently drive in accident-prone zones. The customer support team at the Tata AIG car insurance claim process can give you one of the best assistance and support in this regard.


Voluntary deductible is a feature introduced by motor insurers to increase the car owner’s responsibility for safe driving habits. It is an amount you will have to pay from your pocket in case of a claim settlement. The amount is fixed during policy inception and does not change based on the claim amount. Also, the more voluntary deductible you decide to pay, the lower your premium for the policy becomes! A voluntary deductible is a good option for skilled and experienced drivers and can smoothen the claim processing. Thus, it is more saving than an unnecessary expense!


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