DEDUCTIBLES: VOLUNTARY & COMPULSORY

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DEDUCTIBLES: VOLUNTARY & COMPULSORY Voluntary deductibles - At the time of purchase of a car insurance policy, you can opt to bear a part of all claim payouts. In such a cas you can avail a considerable discount in motor insurance own damage premium. Compulsory deductibles - It's a part of the car insurance claim amount that you will have to pay mandatory. This value depends on the cubic capacity of the vehicle. Deductibles serve a dual purpose: they save the insurance company money (including the administrative cost of processing small claims) and may help keep your premium costs lower. Compulsory deductibles are used by car insurance companies to prevent car owners from raising frequent claims, particularly for small damages. With compulsory deductible the value you contribute is a small amount, and can be easily borne at the time of a claim. Compulsory deductible the premium amount of the car insurance is not affected by the amount of compulsory deductible. Voluntary deductible the premium amount of the car insurance is inversely related to the amount of voluntary deductible. On compulsory deductible, the number of compulsory deductibles in car insurance is pre-determined by the Insurance Regulator based on the insured vehicle’s engine capacity. Voluntary deductible the amount of voluntary deductible is set by the car insurance policyholder. It is not mandatory to have. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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