Buying motor insurance and making claims (or not)
Making a claim
As part of the terms of your insurance policy, you are usually required to cover a specific amount in damages before you can make a claim. This amount is called ‘Excess’ and it is not refundable. For example, if the total cost of repair is RM500 and your excess is RM500, then the insurance company will not pay anything and you will bear the full cost. If the repair cost is RM900, then you will have to pay RM500 and the insurance company will cover the remaining RM400.
There is likely to be an additional Excess for drivers not in your named drivers’ list, those below 21 in age, or those with a probationary (P) license.
If you drive an old car and the repairs are considered to actually be an upgrade to your car compared to how it was before the accident, you may have to pay what are called ‘Betterment’ charges, which can be up to 40% of the cost of the new parts.