A car is a valuable possession and hence buying an insurance policy to protect it from damages and untoward events is a must. However, there are many terms in car insurance that people are not completely aware of such as the claims process, coverage, third-party, etc. You must be aware of insurance jargon before purchasing a car insurance policy so that you don’t face any problems while filing an insurance claim.
One such feature is called the ‘deductible’, which affects the claim settlement. Here’s a guide about the same so that you can get the maximum benefits out of your car insurance policy.
Let’s say that you’re looking to buy car insurance online
, in that case, it is essential to know exactly what a deductible is. During a claim, you have to pay a certain amount to the insurance company before your insurer provides compensation. This difference that you have to pay is known as the deductible. There are two types of deductibles: compulsory and voluntary.
Let us understand both in detail.
The Insurance Regulatory Development Authority of India (IRDAI) has made compulsory deductible mandatory under your car insurance policy. The amount depends on your car’s engine capacity and is fixed by your insurer. If your car is old, they might increase the deductible amount as your car is prone to more risk and danger and, thus, a higher chance of you filing a car insurance claim. Therefore, inquire and know your vehicle’s compulsory deductible amount before buying the policy. This type of deductible does not have any impact on your car insurance premium.
Unlike compulsory deductible, this one is optional. Along with the compulsory deductible, you can also choose to pay a voluntary deductible. You have the liberty of negotiating the voluntary deductible with your insurer. Remember that the voluntary deductible affects your car insurance premium. You must put thought into the amount and consider factors such as risk exposure, your budget, etc. If you’re sure that you won’t get involved in an accident or bump into things, another vehicle, or people, then opt for a higher deductible. This way, you would save on your car insurance premium
This feature helps car owners enforce discipline and instills a greater sense of responsibility when it comes to safety and handling their car. You can also call it a joint pact between your insurer and yourself.
With this feature, you would think twice before raising a claim and win yourself concessions from NCB in car insurance
. Purchasing a car insurance policy and adding this feature isn’t difficult and does not require you to be a tech-savvy either. All you need is a laptop or smartphone with an active internet connection and you’re good to go. Just visit the insurer’s website and fill in the necessary details. Once you’re done with the payment, you have a car insurance policy ready!