Do You Want To Avail Voluntary Excess Discount?

What is standard excess and voluntary excess?

An excess is the amount you must pay for each incident you make a claim for.

A standard excess applies to all claims unless stated otherwise in the PDS.

In the event of a claim, your standard excess remains the same and the voluntary excess represents an additional payment.


What is a reasonable voluntary excess?

A voluntary excess is the amount that you would have to pay if a claim is made on your motor insurance policy, before your insurer would make any payment and is in addition to the compulsory excess. Whether the damage is your fault or not, the voluntary excess stays the same.

Is it better to have high or low excess?

The more you drive the higher the chance that you may be involved in a collision, even if you do all of the right things and are considered a safe driver. Therefore it may be better to opt for a lower excess. This way, you’ll pay less if you need to make a claim although your premium will be higher in the short term.

What is De tariff discount?

Insurance Regulatory and Development (IRDA) would de-tariff the premium rates for guiding vehicle owners according to Mr. … In case of vehicle falling under the unprofitable category, the premium rates are likely to get increased and discounts are sure to appear on the premiums with low claims.

How is vehicle IDV calculated?

Neeraj Gupta, Head of Motor Insurance at, informs, “For a new car, the IDV is calculated as the manufacturer’s listed ex-showroom price minus depreciation. Normally, the depreciation of a new car is 5 per cent, hence by default, the maximum IDV should be 95% of the ex-showroom price of the car.”

What if damage is less than excess?

If the damage to your vehicle is minor, and the cost of repairing it is less than your excess, lodging a claim is unnecessary. You can still have a claims adjustor make an assessment of the damage so you have an accurate idea of the bill you’re facing, but without any obligation to file a claim.

What is the difference between compulsory and voluntary?

When used as nouns, compulsory means something that is compulsory or required, whereas voluntary means a short piece of music, often having improvisation, played on a solo instrument. When used as adjectives, compulsory means required, whereas voluntary means done, given, or acting of one’s own free will.

Do you have to pay compulsory and voluntary excess?

What’s the difference between voluntary and compulsory excess? Compulsory excess is set by your insurance provider and can’t be changed. Voluntary excess is how much you choose to pay on top of the compulsory excess. Some policies may also have an additional compulsory excess.

Do I get my excess back if it’s not my fault?

When you won’t pay an excess If you’re found not to be your fault, your insurer claims the excess back from the at-fault party’s insurer, along with other costs. Assume you’ll have to pay your excess first to get your claim started.

What is a compulsory excess?

What is compulsory excess? The compulsory excess is, as the name suggests, a mandatory amount to pay as set by your insurer.

What is basic excess?

Budget Direct’s Basic Excess is effectively the minimum excess you’re required to pay for an at-fault car insurance claim. The amount of your Basic Excess depends on the state or territory in which your car is kept; by increasing your premium, you may be able to lower your Basic Excess (and vice-versa).

What happens when an insurance claim goes 50 50?

If it’s proven the accident was the other person’s fault and we recover the full cost from their insurer, the excess is refunded, so you don’t lose out. If a claim settles 50/50, the third party insurers will repay 50% of your excess.

How can I lower my auto insurance?

Nine ways to lower your auto insurance costsShop around. … Before you buy a car, compare insurance costs. … Ask for higher deductibles. … Reduce coverage on older cars. … Buy your homeowners and auto coverage from the same insurer. … Maintain a good credit record. … Take advantage of low mileage discounts. … Ask about group insurance.More items…

What is a good excess for car insurance?

It will cover the cost of the excess you pay if you make a claim against your car insurance. The amount covered is usually a pre-agreed limit and applies to both voluntary and compulsory excess. You can choose the upper limit on which the excess insurance policy will pay out – it typically lies between £250 and £1,000.

Is voluntary excess worth it?

By choosing a higher voluntary excess, you will reduce your premium; but you will also have to pay more if you do make a claim. If you choose a lower voluntary excess, your premium may be higher, because your insurer will have to pay more in the event of a claim.

What is the compulsory excess in MISC type of vehicle?

Compulsory Excess is that part of the claim amount which you will have to bear out of your pocket. For cars which are not exceeding 1500 CC, the rate is fixed at thousand rupees. For car exceeding 1500 CC rate is set at 2000 rupees. Moreover, for two-wheelers, the amount is rupees 100.

Do I pay excess if someone hits me?

You pay car insurance excess if you make a claim for damage to your car, with repairs being covered by your insurer. You don’t have to pay car insurance excess if it’s a third party claim (someone else involved), as your excess only counts to your own claim.

How many years of no claims discount do you have?

two yearsProof of no claims is usually only valid for two years, which means if you’re off the road for any reason or don’t have your own policy for more than two years, you’ll be back to zero NCD the next time you take out cover.