Car Insurance Guide
Car Insurance Excess in Malaysia: What You Pay Out of Pocket 2026
What is a car insurance excess? How much do Malaysian drivers pay? Can you reduce it? Complete guide to policy excess and deductibles.
What is car insurance excess in Malaysia?
Car insurance excess (also called a deductible) is the amount you pay out of pocket before your insurer covers the rest of a claim. In Malaysia, there are two types: compulsory excess (set by Bank Negara — typically RM300 for drivers under 21 or with less than 2 years experience) and voluntary excess (you choose to pay more upfront in exchange for a lower premium). Most experienced adult drivers with comprehensive insurance do not pay any excess unless they're at fault in an accident.
Updated 2026 • Malaysia
What Is Car Insurance Excess?
Excess (also called a deductible) is the amount you agree to pay towards a claim before your insurer pays the rest. If your excess is RM300 and your repair bill is RM2,000, you pay RM300 and the insurer pays RM1,700.
In Malaysia, excess is most commonly triggered when you make an at-fault own damage claim — i.e., you caused the accident and your car needs repairs. Third-party claims (the other driver pays) typically don't involve your excess.
No-excess claims: Not all claims trigger excess. Theft claims, windscreen claims (if you have windscreen coverage), and claims where the other driver is 100% at fault typically have zero excess.
Types of Excess in Malaysia
- Compulsory excess (BNM-mandated)
- Voluntary excess
- Unnamed driver excess
- Workshop excess
Malaysia Compulsory Excess Schedule
| Situation | Compulsory Excess |
|---|---|
| Driver is under 21 years old | RM300 |
| Driver has less than 2 years licence | RM300 |
| Unnamed driver (not listed on policy) | RM400 additional |
| Driver under 21 AND unnamed | RM300 + RM400 = RM700 |
| Experienced adult driver (named) | RM0 |
When Do You Actually Pay Excess?
You pay excess when you make an at-fault own damage claim. This means:
✅ Your car is damaged in an accident where you're at fault → excess applies
✅ You accidentally hit a wall or pillar in a car park → excess applies
❌ Other driver hits you and is fully at fault → no excess (claim against their policy)
❌ Windscreen crack (with windscreen add-on) → no excess
❌ Flood damage (with Special Perils) → no excess
❌ Theft → no excess
The excess is collected by the workshop when you pick up your repaired car, not by the insurer upfront.
How to Reduce or Eliminate Your Excess
Buy zero excess / excess waiver add-on
Some insurers offer an excess waiver for an additional premium (typically RM50-150/year). This removes your excess on at-fault claims.
List all regular drivers as named drivers
Eliminates the RM400 unnamed driver excess if someone else causes an accident in your car.
Be over 21 with 2+ years experience
The RM300 compulsory excess only applies to young/new drivers — it goes away automatically once you meet the criteria.
Always use panel workshops
Using your insurer's panel workshop avoids any non-panel excess and often gives you faster, cashless repairs.
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Car Insurance Excess in Malaysia FAQ
No. If the other driver is 100% at fault and admits it (or is found liable), you claim against their third-party policy and pay zero excess. However, if liability is disputed, you may need to pay excess upfront and recover it later.
Related Guides
Named Driver Guide
Add named drivers to avoid the RM400 unnamed driver excess
How to Claim Car Insurance
Step-by-step claims process — when excess is collected
P License Car Insurance
The compulsory RM300 excess for new drivers
Car Insurance Add-Ons
Excess waiver add-on — remove your at-fault excess entirely
Compare Policies With Low or Zero Excess
Some insurers include excess waiver; others charge extra for it. Compare all 16 insurers on Bjak to find the best combination of low premium and low excess for your profile.