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The type of motor insurance to get depends entirely on the needs of the vehicle owner. Having third-party insurance is compulsory by law, but getting comprehensive insurance is a more practical solution. For starters, it comes with an extensive coverage option. Additionally, policyholders are provided with an option to add special features such as engine protection cover. At Bajaj Markets, you can buy vehicle insurance online through a hassle-free process. But when you opt to buy comprehensive vehicle insurance, the insurer will ask you to choose a deductible limit.

What is deductible?

The deductible is an amount that has to be paid by the policyholder before the insurer takes responsibility to pay the remaining claim. In simpler words, it is a threshold which has to be breached for an insurance claim to kick in. For example, you buy a policy with a deductible limit of Rs 1000. You meet with an accident and claim Rs 5000 from the insurance company for the damages. The insurance company will pay Rs 4000, only after you pay Rs 1000 from your pocket.

Types of Deductibles

Compulsory Deductibles

The insurance company while selling the four wheeler insurance policy to you will inform you about the compulsory deductible amount. It is fixed by the insurer and the policyholder has no say in the decision. The amount of compulsory deductible largely depends on features such as the age of the vehicle and engine capacity. Companies tend to fix a higher compulsory deductible limit if they deem the risk to be high. The compulsory deductible doesn’t influence the premium of the policy. As per the insurance regulator, compulsory deductible ranges from Rs 50 for two-wheelers to Rs 500 for four-wheelers.

Voluntary Deductibles

Besides compulsory deductibles, motor insurance comes with a voluntary deductible clause. The voluntary deductible is decided by the policyholder depending on the affordability. Insurers provide a discount on vehicle insurance premiums if you choose a higher voluntary deductible limit. Having a voluntary deductible deters people from driving carelessly and damaging the car as they will have to pay a part of the claim before the insurance company pays the balance. People who have confidence in their driving skills and are cautious drivers can opt for a higher voluntary deductible and save on insurance premiums.


Deductibles promote road discipline in drivers as losses due to damage to the car will have to be partly borne by the policyholder. Even though choosing a high voluntary deductible amount helps in reducing the insurance premium, it should not be the only guiding factor. You should compare the amount that will have to be paid out of pocket in case of an accident with the overall benefits of reduced premiums. You can buy a Bajaj Allianz motor insurance through Bajaj Markets and avail features such as cash-free services and round the clock assistance.

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