Know Your Deductibles – Part 2

There are two kinds of deductibles, compulsory and voluntary.

The compulsory deductible is the smallest excess your insurance company will permit on your insurance plan. This can vary depending on your personal information, record of driving and insurance company.

For a reduced insurance plan premium, you can propose to compensate a greater deductible than the compulsory deductible obliged by your insurer. That is where voluntary excess comes in. It is the extra value over and above the compulsory deductible that you consented to pay when you try to obtain the plan again.

Since the bigger deductible shortens the financial risk brought by your insurer, a smaller premium can be presented to you by your insurer.