Introduction
Voluntary excess in car insurance is an amount you agree to pay out-of-pocket when making a claim. In Malaysia, it’s an option that allows drivers to reduce their car insurance premiums while sharing some of the risk.
- Higher voluntary excess → lower premium
- Lower voluntary excess → higher premium
Choosing the right level depends on your risk tolerance, driving habits, and financial situation.
How Voluntary Excess Works
| Factor | Description | Example | Note |
| Premium Reduction | Opting for a higher excess lowers the insurance cost | RM1,500 excess may save 10–15% of premium | Savings depend on insurer |
| Claim Responsibility | You pay the agreed excess first when making a claim | Accident repair cost RM3,000, excess RM1,500 → insurer covers RM1,500 | Must be able to pay excess |
| Risk vs Reward | Balance between saving premium and paying more during a claim | Low-risk drivers may choose higher excess | High-frequency claim drivers may choose lower excess |
| Flexibility | Voluntary excess can be adjusted at renewal | Change excess each year | Ensure insurer approval |
Tips for Drivers
- Choose a voluntary excess level you can afford during a claim.
- Higher voluntary excess may save money if you rarely make claims.
- Review excess options at policy renewal.
- Always check insurer rules; some restrict maximum voluntary excess.
Conclusion
Voluntary excess in car insurance is a useful tool for lowering premiums while sharing some financial responsibility. Drivers in Malaysia can balance savings and risk by selecting the right voluntary excess level for their driving habits and claim history.
Read More:
