Should i increase my voluntary excess

With VD, what happens is you do not receive adequate financial assistance from the insurer and you have to pay as decided at the time of repairs.

This sudden payment can be tough for you from a financial standpoint if the repair charges are too much to handle. Choosing a VD is a personal choice and can be made by anyone looking for Comprehensive Car Insurance. Overall, opting for a VD can be beneficial for the following types of people. Experienced drivers are confident. They are in control of their vehicle. As a result, the probability of claims reduces comparatively. Therefore, if you are an experienced driver, then you can opt for a VD and enjoy the benefit of low premiums without worrying about the claim, which as per your experiences is less likely to happen as compared to a newbie.

If you are someone who is financially secured to an extent and does not mind contributing to the claim amount for car repairs, then going for the VD option can prove beneficial for you. You should be wary of opting for a VD if you belong to the following two categories. Those who are new to driving are at a higher risk of an accident.

Also, repairing the damages to a new car can be an expensive affair. Thus, the chances of raising a claim are more in such cases.

Therefore, a higher insurance cover, where the insurer pays for the bulk of the claim settlement is beneficial for you. You might end up paying comparatively higher premiums but since the probability is against you, it is better to settle for the compulsory deductible.

If you are someone who does not have savings for issues related to car repairs, you are better off letting the insurer handle the claim settlement entirely by themselves. Why do you want to force yourself in a position where you will be required to contribute to a claim amount from your pocket when you do not have adequate savings for such situations?

People with low savings are likely to utilise the saved money for an emergency for example, health issues than to spend the savings to repair their car. A car insurance add-on is an extra cover. You receive it by paying extra premium. In car insurance, you can choose add-ons with a Comprehensive Plan. Add-ons are voluntary. However, not all voluntary features are termed as add-ons. For example, a Voluntary Deductible is not an add-on; it is a voluntary option that offers benefits.

The below-stated section will help to clear basic doubts, if any, concerning CD and VD. The following list of queries is generic, for specific questions, please contact your insurer. Yes, VD is beyond the CD component. Concerning vehicle insurance, both the terms mean the same and are used interchangeably.

Opting for VD is completely optional and not limited by a type of car. It is based on your discretion. Yes, VD can reduce car insurance premium up to INR as per the terms and conditions of the policy. Yes, the option of VD is available for new as well as old cars. Yes, They Work. Why is Car Insurance Mandatory in India? Click here! The use of images and brands are only for the purpose of indication and illustration. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms.

Amount saved is in comparison to tariff rates. For more details on risk factors, terms, conditions and exclusions, please read the policy wordings carefully before concluding a sale. Manage policy. Raise a claim. Renew policy. Though the idea of voluntarily paying more towards your insurance claim may seem counter-intuitive, there are benefits that come with increasing your excess.

A higher excess can mean cheaper premiums and your insurance will cost less in the long-run - as long as you don't make a claim. Increasing the amount you are willing to pay reduces the amount your insurer will pay if you make a claim - so you are 'rewarded' with cheaper premiums. Increasing your voluntary excess in return for cheaper premiums may be appealing if you have a history of no claims and think it's unlikely that you'll make a claim anytime soon.

However there's no way of predicting the future so you could find yourself in a position where you have to make a claim and are stuck with paying out more to meet the cost. Only consider paying a higher up-front excess if you can afford to cover the excess in the event of a claim,. If you have savings you can benefit doubly from increasing your excess, by keeping some funds aside to cover excess in a savings account , while at the same time enjoying cheaper premiums. If you can't afford the extra excess comfortably, setting it high means you may be put off making a claim on your insurance - which misses the point of paying out for insurance altogether.

If the claim is made on an accident at which you were not at fault, your insurer might pay your claim in full. By increasing your excess to include a voluntary excess, you are agreeing with your insurer that, should you need to claim on your insurance policy, you will pay out this extra amount. Younger drivers with car insurance - drivers under 25 — often have to pay an additional compulsory excess on top of the standard excess if they need to make a claim. Insurers cover themselves by asking them to pay more towards the cost of a claim.

Deciding on whether or not to increase your excess is a gamble, based on risk. By increasing it, you are gambling lower premiums against having to pay out more to meet the cost of a claim. Any decision will largely come down to whether or not you can afford to meet this extra cost should you have to.

If you cannot afford the up-front cost of a higher voluntary excess, there are other things you can do to reduce your premiums. If you are looking for cheaper car insurance consider taking an advanced driving test, or adding extra security to your car and if you have additional cars in the family consider a multi car insurance policy. If you are looking for cheaper home insurance shop around for quotes and make sure your home security systems, alarms and locks are up to date.

Always compare pet insurance and travel insurance quotes before deciding which insurance company to go with. Make sure you protect your loved ones. Cut broadband costs. Other news. The most common driving offences by profession.