Is the compulsory deductible the same for every car?

No. The compulsory deductible depends on your car's engine size. It is ₹1,000 for cars up to 1500cc and ₹2,000 for cars above 1500cc, and every insurer applies the same amount for the same engine size, since this part is fixed by the policy terms.

Can I remove the compulsory deductible from my policy?

No. The compulsory deductible cannot be removed, since it applies to every Own Damage and Comprehensive claim by default. What you can control is the voluntary deductible, which is an additional amount you may choose to add on top of the compulsory one.

Does a higher voluntary deductible always lower my premium?

Yes, generally. Choosing a higher voluntary deductible usually brings your premium down, since you are agreeing to pay more yourself at claim time. The exact reduction depends on your insurer and your car, so it is worth comparing before you decide on an amount.

Do I pay the deductible even if the other driver was at fault?

Yes. The deductible applies to your Own Damage claim regardless of who caused the accident, since it is a fixed part of how your own policy settles a repair. Fault or blame is handled separately, and does not change what you pay towards your own deductible.

Does Zero Depreciation cover remove my deductible?

No. Zero Depreciation cover removes the depreciation cut on replaced parts during a claim, but it does not remove your deductible. You still pay the compulsory deductible, and any voluntary deductible you chose, even with Zero Depreciation cover in place.

Do consumables like engine oil get deducted separately from my settlement?

Often, yes. Items such as engine oil, nuts, and bolts are typically excluded from a standard settlement on top of your deductible, unless you hold a Consumables Cover. This is separate from your deductible and can reduce what your insurer actually pays beyond it.

Do I pay a separate deductible for each claim in a year?

Yes. The deductible applies per claim, not once a year. If you raise more than one claim in a policy year, you pay the applicable deductible each time, which is one reason frequent small claims can add up in the amount you pay yourself.

Can I change my voluntary deductible at renewal?

You can usually review and change your voluntary deductible at every renewal, along with your IDV and optional covers. This gives you a chance to adjust it if your driving pattern or budget has changed since you last bought the policy.

Does a lower voluntary deductible increase my premium?

Yes. Choosing a lower voluntary deductible, or removing it altogether, usually increases your premium, since your insurer is agreeing to cover a larger share of every claim. It is a straightforward trade you can weigh against how often you expect to claim.

What does Kiwi's Flexi Repair do with my deductible on minor damage?

Flexi Repair lets you bank minor damage instead of raising an immediate claim and paying a fresh deductible for it. That minor damage is combined with a larger claim later, so you avoid paying multiple separate deductibles for small repairs over the same policy year.

What a deductible is in motor insurance and how it affects you

Written by

Reuben SolomonLead Content Writer

Reviewed by

Rupinderjit SinghHead - Tech Product & Digital Business

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Introduction

Every motor insurance claim leaves you paying part of the bill yourself, no matter how carefully you chose your policy. That amount is your deductible in car insurance, and your insurer applies it before paying anything towards a repair, whether the claim is large or small.

Keep in mind

Every motor claim has a compulsory deductible fixed by the regulator
You can choose a voluntary deductible on top to lower your premium
A higher voluntary deductible increases what you pay when you claim
Deductibles apply on every claim, not once a year

What the compulsory deductible actually is

Every Comprehensive and Own Damage claim carries a compulsory deductible fixed by your policy. This is a set amount you pay yourself before your insurer settles the rest of the bill, and it applies regardless of who caused the damage or how the claim happened.

For a private car, this amount is ₹1,000 for cars up to 1500cc, such as a Maruti Suzuki Swift, and ₹2,000 for cars above 1500cc, such as a Hyundai Creta. Every insurer applies the same amount for the same engine size, since this part of the deductible is not something you can choose or remove.

This amount does not change based on the size of the claim or the type of damage. Whether the repair costs a few hundred rupees or several thousand, the same compulsory deductible applies each time you raise a claim.

Adding a voluntary deductible on top of that

On top of the compulsory amount, you can choose a voluntary deductible when you buy or renew your car insurance policy. This is an additional amount you agree to pay yourself on every claim, and your insurer lowers your premium in exchange for you carrying more of the cost.

The compulsory deductible stays fixed no matter what you choose, but the voluntary portion is entirely your decision. A driver who rarely claims might pick a higher voluntary deductible to save on premium, while someone who expects frequent repairs might prefer to keep it low or skip it.

Insurers usually limit how high a voluntary deductible you can choose, so you cannot select an amount so large that it defeats the purpose of holding insurance. Within that range, the choice of exact amount is yours to make at every renewal.

How your deductible works out at claim time

A deductible is the part of a covered claim that you agree to pay yourself. The insurer considers this along with any other applicable deductions when calculating the final claim settlement.

Here’s how it works:

Start with the repair cost
Say your car needs repairs costing ₹8,000.
Apply your compulsory deductible
If your compulsory deductible is ₹1,000 and you have not chosen a voluntary deductible, ₹1,000 is your share of the covered claim.
Check for other deductions
The insurer may also deduct amounts for things such as depreciation on replaced parts or consumables such as engine oil, nuts and bolts, depending on your policy.
The insurer calculates the final settlement
The amount paid by the insurer is worked out after considering the deductible and any other applicable deductions.

For example, if there are no other applicable deductions, an ₹8,000 repair bill with a ₹1,000 compulsory deductible would leave ₹1,000 as your share, with the remaining ₹7,000 considered for settlement by the insurer. If you also have a ₹2,000 voluntary deductible, your share would increase to ₹3,000.

The same logic applies to a larger repair. On a ₹40,000 claim, your compulsory deductible would still be ₹1,000 if no voluntary deductible applies. The final amount you pay can vary depending on what else is deducted under your policy.

Other deductions in a claim

Your deductible is not the only amount that may be deducted from a claim. Depending on your policy, the insurer may also deduct:

Depreciation on replaced parts
Consumables such as engine oil, nuts and bolts
Costs for items or damage not covered by your policy

Optional covers can help with some of these costs. For example, Zero Depreciation can cover depreciation on eligible parts, while Consumables Cover can cover certain consumable items, subject to the policy terms.

Check your policy and its optional covers to understand what is covered and what you may have to pay yourself.

Deciding between paying yourself and raising a claim

For small repairs close to your deductible amount, raising a claim may not save you much. Once you subtract your deductible from the payout, and account for the No Claim Bonus you could lose at renewal, paying for a minor repair yourself can work out cheaper overall.

This is worth checking before you raise a claim, especially for scratches, small dents, or a cracked light. Larger repairs, where the bill is well above your deductible and your No Claim Bonus discount, are usually still worth claiming.

What Kiwi does differently for minor damage claims

With Kiwi's Flexi Repair, you do not need to raise a separate claim, and pay a fresh deductible, for every small dent or scratch. Minor damage can be banked and combined with a larger claim later, so you are not weighing a small repair bill against your deductible and No Claim Bonus each time.

Minor damage gets recorded without triggering an immediate claim or deductible
It is combined with your next larger claim, so you pay one deductible instead of several
You still decide when to formally raise the combined claim

Conclusion

Your deductible, compulsory and voluntary together, decides how much of every repair bill lands on you. Reviewing it once a year, alongside your IDV and optional covers, keeps your policy matched to how often you actually expect to claim. A deductible that feels right when you buy your car insurance policy can feel very different a year later if your driving or your car has changed, so it is worth a second look at every renewal.

A deductible you understand in advance makes claim time simpler, not stressful. Buy or renew your car insurance policy with Kiwi and set a deductible that matches how you actually drive.

Written by

Reuben Solomon

Lead Content Writer