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Voluntary deductible in car insurance is the amount a policyholder agrees to pay toward future repairs of his/her car at the time of claim. It is not an extra amount paid over and above the premium, but a part of the repairs bill that a policyholder has to bear. The deductible helps reduce the premium outgo for policyholders.
The amount varies with insurers. For instance, in the case of Reliance General Insurance, if you opt for a voluntary deductible amount of ₹2,500, you get a discount of 20 per cent on own-damage premium of the vehicle, subject to a maximum of ₹750. Suppose your third-party premium is ₹2,000 and own-damage is ₹4,500, your total premium outgo is ₹5,750 (₹6,500-7,50).
At the time of claim, the total deductible will include compulsory deductible as well. Thus, you can choose the voluntary deductible limit considering your affordability and the risks your vehicle will endure.
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