What is a Compulsory vs voluntary deductible (motor)?
A deductible (excess) is the part of an own-damage claim you pay yourself. The compulsory deductible is a fixed amount set by the insurer that always applies. A voluntary deductible is an extra amount you choose to bear in exchange for a lower premium — it raises your out-of-pocket cost at every claim.
Compulsory vs voluntary
The compulsory deductible is mandatory and applies to every own-damage claim regardless of your choices. You cannot remove it.
A voluntary deductible is optional: by agreeing to pay more per claim, you get a premium discount. It suits careful drivers who rarely claim, but it increases what you pay each time you do claim, on top of the compulsory amount.
Example
You opt for a voluntary deductible to cut premium. At a claim, you pay the compulsory deductible plus your chosen voluntary amount before the insurer pays the balance of the admissible repair.
Common mistakes
- Choosing a high voluntary deductible for the premium saving, then struggling to fund it at claim time.
- Forgetting the voluntary deductible stacks on top of the compulsory one at every claim.
Frequently asked questions
Should I take a voluntary deductible?
It makes sense if you rarely claim and can comfortably pay the higher excess when you do. If you claim often or want minimal out-of-pocket, keep it low or nil.
Does the deductible apply to third-party claims?
Deductibles apply to own-damage claims for your vehicle. Third-party liability payouts to others are handled separately under the policy's liability terms.