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Old 28-10-2008, 08:13 PM   #20
X66
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Join Date: Jan 2000
Posts: 461
Hi, i'm new to this car insurance thing. Can I know what does it mean by "excess"? thanks arh.
Excess will refers to the cash amount that the car owner must pay the workshop 1st before repair can start. This is because this amount will not be covered by the insurance company.

For example, if a person's insurance excess is $500 and he met with a car accident.

When he goes to the car workshop, he will need to pay $500 before the workshop start to repair his car. The insurance company will be notified and his NCD will be reduced by 30%. After the car is repaired and the insurance company has finished the investigation, the insurance company will then decided if it wants to return the excess ($500) to the owner.

If the owner is not at fault, the insurance company will return the full excess ($500)
The insurance company will also restore the original NCD of the driver before the accident.

If the owner is at fault or partial at fault, the insurance company will not return his excess.
His NCD will not be re-instore.

Hence, please ensure that you do not have a crazy amount of NCB (>$1000) in your insurance policy just because you want to save a bit on car insurance. It's not worth it.

Hope it helps.
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