Voluntary deductibles in car insurance are the amount that the policyholder agrees to pay voluntarily for future repairs to his car in the event of an accident or crash. Each policyholder has the option to choose the deductibles as per their budget. The higher the voluntary deductibles, the lower the premium for car insurance.

When you decide to buy a car insurance policy, there are two types of costs. The first is the premium, which you generally pay on an annual basis, and the second is the deductible, which you pay out of your pocket when you file a car insurance claim. Deductibles are also classified as compulsory or voluntary.

 If all of this sounds confusing to you, don't worry because we will discuss the voluntary deductible in car insurance in detail in this blog.

What are Deductibles?

Before we get into voluntary deductibles, let us first define deductibles. A deductible is simply the amount you must pay to your insurer before filing a claim. In other words, it is the amount that the customer agrees to pay out of pocket before the insurance company pays the rest.

Two types of deductibles commonly associated with insurance policiesfor cars.

  • Compulsory Deductibles

As the name implies, compulsory deductibles are required to be paid based on the engine cc of the four-wheeler. The insurance company determines the number of compulsory deductibles.

  • Voluntary Deductibles

A voluntary deductible in car insurance means the amount that a policyholder agrees to pay for future car repairs in the event of an accident or crash. 

Difference Between Compulsory and Voluntary Deductible


Compulsory Deductibles

Voluntary Deductibles

Chosen by you

IRDAI mandates and sets the amount.

Lower the premium by increasing the deductibles.

No impact on premium

During claims, you must pay both the voluntary and compulsory deductible amounts.

During claims, only the compulsory deductible part ofthe amount must be paid to the insurer.

The amount of voluntary deductible and the discount percentage will be as follows:


Voluntary Deductibles


Discount on the Premium

Rs. 2,500

20 percent of the car's damage premium, up to the maximum of Rs. 750

Rs. 5,000

25 percent of the car's damage premium, up to the maximum of Rs. 1500

Rs. 7,500

30 percent of the car's damage premium, up to the maximum of Rs. 2000


35 percent of the car's damage premium, up to the maximum of Rs. 2500

This is just an example; please read the terms and conditions before selecting any plans.

Benefits of Voluntary Deducible

Consider the following scenario: suppose you own a very expensive car, and as a result of its high cost, your car insurance premium is also high. In this case, you can choose voluntary deductibles of a very small amount to pay a slightly lower insurance premium.

Misunderstanding of Voluntary Deductibles

Unnecessary Investment

Some skilled drivers believe that voluntary insurance is pointless and a waste of money, but the truth is that you never know what could happen on the highway, so it is critical for both skilled and unskilled drivers to pay for voluntary deductibles that will benefit them in the long run.

Don't be Confused with NCB (No-Claim Bonus)

NCB is a reward that the policyholder receives when he does not file any claims in a year whereas voluntary deductibles are only allowed once at the time of policy shopping.

The Higher the Voluntary Deductibles the Better it is

That is not always the case. So, before deciding on the amount you can pay at the time of claim, you should consider all deductible scenarios.

FAQs - Frequently Asked Questions

Q1. How do voluntary deductibles work?

Ans. Assume you have a car with a 1000cc engine and a Rs. 50,000 insurance policy. If you have a minor accident and the cost of repair is $15,000, you must pay Rs. 5,000 as a voluntary deductible to the insurer.

Q2. Who can opt for voluntary deductibles in car insurance?

Ans. Pro Drivers- If you are an excellent driver who is cautious, alert, and safe, you can be confident that your chances of colliding with another vehicle are very low, and then you can choose voluntary deductibles.

If your neighbourhood is secure- You can choose such plans if your living area is free of any accident-prone zones and you are not concerned about meeting an accident.

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