Have you ever wondered why, after purchasing comprehensive insurance, you sometimes have to pay additional costs amounting to tens of thousands of baht when filing a full coverage claim? The question is, why do we have to pay extra when we already have comprehensive car insurance? The additional costs we need to pay for a comprehensive claim are referred to as Excess or the deductible. Let's take a look at what Excess is and what to do if we want to avoid these extra costs.

What is Excess?

Excess refers to the initial damage cost that is charged to the car insurance policyholder when an accident occurs (simply put, you have to pay when filing a claim) due to negligence while using the vehicle. Damage that does not result from a collision or cannot identify the other party is considered a lack of caution in usage. Examples include:

  • Driving over a nail or sharp object causing a tire to burst or explode
  • A stone hitting the car causing scratches
  • Scratches from vandalism or scraping against something
  • A branch scratching the car's paint or a branch falling on it
  • Following a truck and having something fall on your car
  • Paint from an unknown source sticking to the car
  • The car sliding off the road
  • Incidents where the other party cannot be identified (not involving a collision)

Why Do You Have to Pay Extra for Excess?

This is due to the adjustment of new laws from the Office of Insurance Commission (OIC) effective from January 1, 2009. In summary, for vehicles insured after January 1, 2009, if an accident occurs and the other party cannot be identified, the policyholder must pay an Excess of 1,000 baht (previously 2,000 baht) for each accident, including other incidents not resulting from a collision or overturning, such as scratches, dents, tire punctures, or stones hitting the car. This differs from the previous law where no Excess was required.

What Types of Claims Require Payment of Excess?

Typically, there are two types of claims: fresh claims (reporting the accident immediately) and dry claims (not reporting the accident immediately and filing a claim later). If you file a fresh claim after an accident, there usually aren't issues regarding Excess. However, if you keep track of every scratch and file a claim later for the entire vehicle, regardless of having comprehensive insurance, you will have to pay the Excess for damages caused by negligence or when the other party cannot be identified.

 Now you know that if you file a dry claim with comprehensive insurance, you will have to pay Excess. If you file a dry claim for the entire vehicle, you will be charged a flat rate of 2,000 baht for each type of damage, totaling up to 6,000 baht, or you may incur additional costs if you choose an insurance plan with a deductible.

 Comprehensive car insurance does not cover everything or every situation, but it provides the most extensive coverage. Ultimately, even if we have the most comprehensive insurance, we must remember that the most important thing is not what the insurance covers, but to drive as safely as possible to minimize damage. Some damages are difficult to recover from.

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