The meaning of deductible is that you pay a part of the repair bill (generally a negligible, fixed amount) during claim settlement. It is the amount you pay while settling a claim. The insurance company will bear the rest of the approved amount.There are two types of deductibles — Compulsory and Voluntary. Under Compulsory Deductible, you pay a nominal amount on every claim. Voluntary Deductible works a bit differently. Here you choose to pay a fixed amount (apart from the Compulsory Deductible) during claim settlement.Going for a Voluntary Deductible can reduce the car insurance premium. But you might be required to pay a significant amount of the repair bill during claims.