What is compulsory in car insurance

A compulsory excess is the sum that your insurer sets and is non-negotiable. This amount depends upon different factors including your age, the type of claim and your car type. The compulsory excess amount is added to the voluntary excess amount to make your total excess should you make a claim.

What does compulsory mean in car insurance?

Compulsory insurance is insurance that must be legally owned to do an activity, such as auto insurance and driving a car. Other types of compulsory insurance include workers' compensation and professional liability insurance.

What does voluntary and compulsory mean in car insurance?

In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least 'third party liability' motor insurance cover even when opting for the basic insurance plans.

Which of the insurance is compulsory?

You must have motor insurance to drive your vehicle on UK roads. Third party insurance is the legal minimum. This means you're covered if you have an accident causing damage or injury to any other person, vehicle, animal or property. It does not cover any other costs like repair to your own vehicle.