Deductibles are a part of car insurance claim amount which is borne by the policyholder at the time of claim. During the process of claim settlement, the policyholder has to pay a certain amount from his pocket and the rest of the amount is paid by the insurance company, this is known as deductibles.Compulsory Deductible: It is an amount which is mandatory by the Insurance Regulatory Development Authority of India (IRDAI). Based on a  cubic capacity of a car engine, IRDAI has fixed a certain amount under Compulsory Deductible which is to be borne by a policyholder in case of claim.  For private cars of 1500cc, the compulsory deductible is Rs. 1000 and for cars which are below 1500cc, the fixed amount is Rs.500.Voluntary Compulsory Deductible: It is optional for a policyholder to opt. It is a certain amount that a policyholder agrees to pay from his pocket at the time of claim. It inversely affects your car premium amount. In case you have opted for a less amount of VCD, the premium of your car will increase. And, if VCD is higher, the premium will be reduced.