Facts About Voluntary Deductible in Car Insurance

You Have to Pay a Voluntary Deductible Only If You Make a Claim: By choosing a voluntary deductible, you agree to pay a part of the claim you make and this helps to bring down your periodic premium payments. However, you only have to pay this money if you ever have to make a claim. So, it can be an economical decision for you if you are a confident driver.

Voluntary Deductible is Not an Additional Expense: Some people think, why should they pay an extra amount of money from their pocket if they are duly paying their premiums? Well, A voluntary deductible is a decision you make depending on your driving environment and your driving skills to pay a part of the claim amount in return for lower premiums. 

Your Compulsory Deductible remains the Same Whether or not You Opt For a Voluntary Deductible: Your compulsory deductible, which is set by the insurance company, does not change based on your decision for an extra voluntary deductible. So, if you opt for a voluntary deductible, you have to pay both compulsory and voluntary deductibles before your insurer covers the rest.

Paying Voluntary Payments is not Always Beneficial: Your choice for a voluntary deductible depends on how frequently you are making claims. If your regular driving area is prone to accidents and theft, opting for a voluntary deductible can be a bad decision.

Frequency of Claims: The main factor in deciding your choice for a voluntary deductible depends on the number of times you have to make claims. If you are making frequent claims and you pay a sum of money every time you make those claims. Cumulatively, this can outweigh the amount you would have paid in premiums. 

Your Driving Environment: The type of area you are driving in is a big factor for your choice for voluntary deductible. The people you are driving with on the road or business on the streets can be equally responsible for accidents on the road.

Your Confidence While Driving: If you are a confident driver and you think you can avoid accidents on the road with your driving skills. You can opt for a voluntary deductible as confidence can reduce your chances of accidents and ultimately claims. 

Percentage Of Compulsory Deductible: Whether you opt for a voluntary deductible or not, you have to pay the compulsory deductible as stated in your insurance policy. So, you will have to make a comparison between compulsory and voluntary deductibles. This comparison will help you calculate your affordability to pay a voluntary deductible on top of the compulsory deductible.