Insurances.net
insurances.net » Others » Deductibles In Motor Insurance
Auto Insurance Life Insurance Health Insurance Family Insurance Travel Insurance Mortgage Insurance Accident Insurance Buying Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Pregnant Insurance Internet Insurance Mobile Insurance Pet Insurance Employee Insurance Dental Insurance Liability Insurance Baby Insurance Children Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

Deductibles In Motor Insurance

Deductibles In Motor Insurance

Deductible, also called excess is the amount that is paid by the policyholder before the insurance comes into force

. This amount is deducted from the total claim by the insurance company while processing it for reimbursement. In case of cashless claims, the deductible part is paid by the policyholder and rest is handled by the insurance company.

While a deductible reduces the chances of claim for the insurance company, it also reduces the premium for the vehicle owner. Higher the deductible, lesser the premium as a part of the damage will be paid by the vehicle owner.

Excesses can be compulsory and voluntary.

Compulsory Deductible

It is the amount that fixed and has to be paid by the vehicle owner before the any claim can be made. In India, since vehicle insurance is compulsory, the compulsory deductible is also fixed based on the type of vehicle.

Compulsory deductible for two wheelers:

For 2 wheelers less than 350cc: Rs. 50/-

For 2 wheelers above 350cc: Rs. 100/-

Compulsory deductible for two wheelers:

For Cars less than 1500cc: Rs. 500/-

For cars above 1500cc: Rs. 1000

For any vehicle claim raised, this amount is deducted from the claim before reimbursement or the cashless claim.

Voluntary Deductible

Voluntary deductible is the amount that the vehicle owner decides to pay himself in case of a claim.One needs to determine the voluntary deductible part at the time of taking the policy. It needs to be paid only if the claim arises. By taking higher deductibles, one can reduce the motor insurance premium substantially. Taking high deductibles can also go adverse if it is set too high. One has to bear the deductible amount when the claim arises and if it is too high one may actually loose on all the premium savings.

One needs to be cautious if one is opting for the voluntary deductible. It needs to be kept at an amount one can easily afford to pay for damages at a given point.

by: SjoerdN
Avoid Fake Korean Jewelry Wholesale Particular Instances That This Professional Wedding Photographers Should Certainly Throw Online Video Production: Great For Creating Advertising On The Web! MaxPro System Review Relatives Tree Creation: Good reasons To Generate Your Personal Family members Tree Making the Right Choice for Your Online Study Reason That Makes Grandchild Photo Frames Perfect Gifts When style matters the most Holiday Rental Los Cristianos: Why Should You Come Here? Custom Cycling Jerseys For Men And Women In Seight Regaining Beauty Dream Would Become True with "Low-light" Laser Treatment Munnar Hotels and Accommodation Facilities - Tour Made Memorable by:Arvind Kumar Weight Loss Pills For Women by:Elbert Buck
Write post print
www.insurances.net guest:  register | login | search IP(44.193.77.196) / Processed in 0.010543 second(s), 6 queries , Gzip enabled debug code: 30 , 2176, 975,
Deductibles In Motor Insurance