Introduction
Excess and deductibles are common terms in car insurance, but many drivers are unclear about their meanings and impact on claim costs. Understanding these concepts is crucial to avoid unexpected payments when filing a claim. This article explains how understanding excess & deductibles, their differences, and tips to reduce costs during claims.
1. What Is Excess
- Excess is a fixed amount you pay when making a claim.
- Example: If excess is RM300 and damage costs RM1,500, you pay RM300 and the insurer pays RM1,200.
- Excess can be standard or voluntary:
- Standard: set by the insurer.
- Voluntary: you choose a higher amount to reduce your premium.
- Standard: set by the insurer.
2. What Is Deductibles
- Deductibles are the maximum amount the policyholder pays before the insurer covers the rest.
- Usually applied for certain claims or add-ons and sometimes based on the type of damage.
- Deductibles may vary between insurance companies.
3. Differences Between Excess and Deductibles
| Factor | Excess | Deductibles |
| Policyholder Payment | Fixed, standard/voluntary options | Maximum before insurer pays |
| Premium Effect | Voluntary option can lower premium | Depends on type of claim/add-on |
| Example | RM300 for damage | Deductible RM500 for glass/battery |
4. Smart Tips for Drivers
- Choose a voluntary excess that fits your budget.
- Check your BJAK policy for deductibles on add-ons like glass cover or key care.
- Understand the excess amount for each claim to avoid surprises.
- Use panel workshops to avoid unexpected additional charges.
Conclusion
Understanding excess and deductibles helps BJAK drivers make smart decisions when purchasing insurance and filing claims. By knowing the differences and payment amounts, you can avoid extra costs and enjoy car insurance protection more efficiently.
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