For many drivers, how does a motor or car policy excess work, its definition can be confusing, particularly to new motorists who are getting car insurance for the first time.
We get that. That’s why we are here to help uncover the meaning of car insurance excess.
What is excess?
An excess is the sum of money that you are required to pay to the insurer when a claim is made on your car insurance policy. An Excess (also known as Deductible) is the first amount of the claim which the insured has to bear before an insurer will issue payment.
For instance, if the insured has an excess of S$500 and the total repair costs S$3,000, then the insured has to pay S$500 while the insurer pays the remaining S$2,500.
Given that excess is the amount of money borne by a car drivers in the event when a claim on their car insurance policy is filed. Many motorists will also be wondering what are a few ways they could save on the costs of car repairs.
As the excess is born by insured, the insured can still save cost by negotiating for lower repair cost if the own vehicle damage is minor. If the Own Damage is major, the insured can pursue a claim against the Third Party if caused by them;
If the Insured’s Own fault is causing severe damage to own &/or Third Party’s vehicle’s damage, he should be considered lucky to maintain his car insurance such as car insurance policy, he will be saved from huge loss he or his authorized driver has caused both his Own Damage and Third Party/Bodily Injuries.
Standing on a neutral viewpoint, certain insurers might request you to send your car to their authorized car workshop as they are fastidious on who repairs the car and what parts the mechanics they use which are less likely to cause a car accident.
If you wish to get your car repaired at your friend’s car workshop, there are instances some insurers might forego your claim.
Good news, our HL Assurance Car Insurance – Car Protect360, offers a comprehensive cover that is designed to fit in motorists’ minds. Every motorist can save 50% on the excess when the car is sent to our approved car workshops.
By Pang Wee Ya
Disclaimer: All info contained herein is intended for your general information only and is not a substitute for insurance advice. If you have a specific question, please consult our insurance experts at 6702 0202.