What are Deductibles in the Car Insurance Policy?
If you are going to purchase car insurance policy then you should also check the deductibles of the car insurance policy and choose it wisely.
In India, there is a provision of compulsive insurance cover on the vehicle, which is why car buyers head to the insurance company soon after they purchase a car. However, they often get confused by the technical jargons and varied clauses that are typically involved with the car insurance policy. Seeking enlightenment and looking for ways to lower premiums is the only way to come out of this safe. Deductibles are other important factors that have to be taken special care of. You must enquire about the deductibles at the time of purchasing the policy. Given below is a small lowdown on the types of Motor Insurance Policies and deductibles applicable to each.
Types of car insurance policies
What are the deductibles?
Deductibles are part of the claim that has to be paid by the policyholder before the insurance company pitches in and takes the responsibility of the remaining claim. Deductibles are of two types: Compulsory deductibles and voluntary deductibles.
Deductibles are important in your car insurance policy and should be carefully planned to keep in mind the affordability in the case of voluntarily deductible clause because the discount in the premiums is not the only deciding factor. Also, you should make sure that the savings in premiums outweigh the out-of-pocket expenditure required at the time of claim.
So if you are a wary person with sufficient income, opt for a higher voluntary deductible instead. However, if you are someone with rash driving skills or with a lack of extra money at the time of claim, either avoid choosing voluntary deductibles or go for a very low amount.
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ABOUT THE AUTHOR
Sahil Doshi is professional writer who loves to share his reviews on general insurance policies offered by HDFC ERGO and other companies.