covers your car against risks like theft, accident, explosion etc.
Voluntary excess is the amount of money that the Policyholder can bear in the case of vehicular damage. If the costs for repair are less than the voluntary limit, an insurance claim can be avoided as it will reduce your Insured capital. A claim can be made if the damage is severe and costs of repair are unbearable.
Most of the insurance companies offer discounts when the policyholder has a claim free year. Hence, minor repair charges could be shelled out from your own pocket to benefit from the discounts accumulated in the future.
Analyze the damage before making any claims. Claiming for a minor repair charge can cost you more and can deny you the privilege of "claim free year" discounts.