Deductible
A deductible is that portion of any claim which is not covered by the insurance company. It has to be paid by the policyholder from his pocket. In a car insurance policy, there are two types of deductibles — compulsory and voluntary. The compulsory deductible amount is fixed by the insurer and has to be paid necessarily by the policyholder, whenever any claim arises. In a voluntary deductible, the limit is chosen by the policyholder.