Voluntary Excess on Car Insurance Malaysia 2026 — How It Saves You Money
Choose to pay more out-of-pocket per claim, and your insurer lowers your annual premium. Here's exactly when it's worth it — and when it isn't.
Voluntary excess = you agree to pay an extra amount per claim → your insurer reduces your annual premium. Best for drivers with 55% NCD who rarely claim. Avoid if you're a new driver or in a high-risk area.
Compulsory Excess vs Voluntary Excess
Compulsory Excess (BNM-mandated)
- RM300 — unnamed driver at fault
- RM400 — P-license or unlisted driver
- RM0 — if the named driver caused the claim
You cannot waive compulsory excess — it's fixed by BNM regulation. You CAN buy an "excess waiver" add-on.
Voluntary Excess (your choice)
- You opt in to pay extra per claim
- Common amounts: RM200, RM500, RM1,000
- Reduces your annual premium proportionally
On a claim, you pay: compulsory excess + voluntary excess. Insurance pays the rest (above deductible).
Worked Examples — Honda City, 55% NCD
Base premium ~RM1,200/year. Savings and excess amounts are estimates — actual figures vary by insurer.
| Voluntary Excess | Annual Premium | You Pay Per Claim | Verdict |
|---|---|---|---|
| RM0 (no voluntary) | RM1,200 | RM300 (compulsory only) | Pay more premium, less per claim |
| RM200 | RM1,150 | RM500 (RM300 + RM200) | Save RM50/yr; break-even at 1 claim/yr |
| RM500 | RM1,080 | RM800 (RM300 + RM500) | Save RM120/yr; suits safe drivers |
| RM1,000 | RM980 | RM1,300 (RM300 + RM1,000) | Save RM220/yr; only if claim-free 5+ yrs |
When Voluntary Excess Makes Sense
✓ Choose voluntary excess if:
- ✓You have 55% NCD and plan to protect it
- ✓You've been claim-free for 5+ years
- ✓You drive conservatively (short distances, familiar roads)
- ✓You want to reduce premium without removing add-ons
- ✓Your car is older and you'd pay small repairs out-of-pocket anyway
✗ Avoid voluntary excess if:
- ✗You're a new or P-license driver
- ✗You've made a claim in the past 2 years
- ✗You drive long distances daily (highway risk)
- ✗You park in high-risk flood or theft areas
- ✗You can't afford a large out-of-pocket amount if you do claim
Important: Don't confuse excess with NCD
Voluntary excess reduces your premium. NCD also reduces your premium — but NCD resets to 0% when you claim. Excess does NOT reset when you claim. The two are independent: you can have both a high NCD and a voluntary excess on the same policy. See: NCD Explained →
See Exactly How Voluntary Excess Changes Your Quote
Compare 16 insurers with different excess options — see the real premium difference for your car.
Compare on Bjak →Frequently Asked Questions
What is voluntary excess in Malaysian car insurance?
Voluntary excess is an additional amount you agree to pay out-of-pocket on top of any compulsory excess when making a claim. By choosing a higher voluntary excess, your insurer reduces your annual premium — because you're absorbing more risk. For example, adding RM500 voluntary excess might reduce your annual premium by RM80–200 depending on your car and coverage.
What is the difference between compulsory excess and voluntary excess?
Compulsory excess is set by BNM regulation — you must pay it for every own-damage claim regardless. Standard rates: RM300 (unnamed driver at fault), RM400 (P-license or unlisted driver). Voluntary excess is optional — you choose to take it on in exchange for a lower premium. On any claim, you pay both: compulsory excess + voluntary excess before insurance pays the rest.
Is voluntary excess worth it in Malaysia?
It depends on your claims history. If you have 55% NCD and rarely claim (protecting your NCD), voluntary excess makes sense — you save on premiums and rarely pay the excess anyway. If you're a new driver or have had multiple claims recently, avoid voluntary excess — you'll likely end up paying more total when you do claim.
How much does voluntary excess reduce my car insurance premium in Malaysia?
Savings vary by insurer and car value, but typical savings: RM200 voluntary excess saves RM30–70/year; RM500 saves RM80–150/year; RM1,000 saves RM150–300/year. The higher your base premium, the more you save proportionally. Use a comparison tool like Bjak to see the exact premium difference for your specific car.