What’s Excess In Car Insurance Anyway?
So, here’s the deal. You make a claim, and the insurance company fixes your car. But, wait, you still pay a bit yourself. That’s excess in car insurance. Simple as that.
For example, your car repair costs RM2,000. Your policy has RM500 excess. You pay RM500, insurer covers RM1,500. Done. Easy to follow, right? Honestly, excess keeps premiums down and stops people from claiming for tiny scratches all the time.
How They Figure Out Your Excess
Excess isn’t just random. There are a few types:
- Compulsory excess – set by the insurer, depends on your car and claim type.
- Voluntary excess – you pick this. Higher voluntary excess? Lower premiums.
- Driver age or experience-based excess – new or young drivers might pay extra.
Total excess = compulsory + voluntary. Always double-check your policy, just in case.
Tips to Keep Your Costs Down
- Pick voluntary excess carefully – higher means lower monthly payments, but more to pay if you claim.
- Think before claiming – if the repair cost is close to your excess, just pay it yourself.
- Shop around – insurers calculate excess differently. A quick compare can save you money.
Wrapping Up
Excess might feel annoying, but let’s be real—it keeps your insurance cheaper. Know your numbers, pick the right voluntary excess, and don’t sweat small scratches. Your car stays covered, and your wallet stays happier.
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