Voluntary Deductible in Auto Insurance

Everybody who has a Auto Insurance knows that , they would never try to make a insurance claim in case there is small damage to the vehicle either to avoid the lengthy claim process or to make sure they get the No Claim Bonus


Ideally this mindset can be used to lower your premium amount .

When buying a Auto Insurance , do tell the agent that you would like to increase the "Voluntary Deductible" .

Voluntary Deductible: is that portion of any claim, which the insured( that is YOU ) is willing to pay out of his pocket. The standard rule is, the higher the deductible, the lower the premium.

Example:
Suppose there is a damage to your vehicle and if it going to cost you two thousand five hundred to fix it , you may never make a claim . So when you buy a Auto Insurance you make sure to mention that you would want your policy to mention that Voluntary Deductible on your policy is two thousand five hundred rupees . This would mean even if the damage is larger , you would need to foot the first two thousand five hundred rupees of the bill and rest would be borne by the insurer as per the policy document.

It is just that since you are willing to bear a part of risk of an accident , the Insurance company reduces the premium

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