DEDUCTIBLE
This is another significant term that you should know. A deductible is that amount of the claim that needs to be borne by the person who buys the cover. For example, for a 1500cc vehicle, the deductible is Rs.1,000. This means that any claim worth Rs.1,000 will not be entertained. For a bigger claim, you will still need to pay the first Rs.1,000. You can choose a higher deductible to bring your premium down, but that might be a mistake because in case you make a claim, you will end up paying a higher amount.