Because auto insurance is such a crucial and vital part of every vehicle owners’ life, there is a lot to it that remains unknown to the everyday driver. For instance:
- Is your auto insurance deductible?
- How does that even work exactly?
- Do you want to opt for a high deductible or a low one?
- What are the factors to consider when picking the best deductible option for your auto insurance?
Hi there! I’m Jun, and by the time you’re through watching today’s video, you would have a clear insight into one of the most hidden aspects of your auto insurance policy. After watching this, you will make the best decisions where your auto insurance deductibles are concerned. Auto insurance costs constitute a major expense for most vehicle owners in the country. Finding out all you can about your vehicle insurance usually goes a long way in helping you make better use of every precious Ringgit. This is where the Insurance360 Video Series comes in! As one of the foremost experts in auto insurance in Malaysia today, we regularly unveil helpful tips so Malaysian drivers can easily handle their vehicle insurance policies better! All you have to do to get in on the action is Like this video, Subscribe to our channel, and don’t forget to set up notifications. That way, you won’t miss any of our awesome updates! If you’ve done that already, just keep watching!
What Exactly Is a Deductible?
In essence, a deductible is the portion of your car repair expenses that you have to cover out-of-pocket before your insurance policy kicks in and your insurer covers the rest. Before moving forward, keep in mind that the kind of deductible you get with your auto insurance is somewhat different from what you get with other types of insurance. For instance, your deductible isn’t paid annually with auto insurance. Usually, you have to pay a deductible only after you must’ve filed a claim for a payout. By inference, you only pay a deductible after your vehicle must have suffered an accident or damage of some sort. So, if, for example, your deductible is 1, 000 Ringgit and your vehicle has suffered damage worth 10 000 Ringgit, you would have to personally put down 1 000 Ringgit before your insurer covers the remaining 9, 000 Ringgit.
This means that if your car suffered damage worth only 800 Ringgit, you would have to cover all the expenses out-of-pocket because it falls under your deductible. Of course, this is restricted to only vehicle owners with a Third Party, Fire, and Theft or a Comprehensive policy. As a vehicle owner, you can choose to have either a high or low deductible when taking out your policy. With a higher deductible, your car insurance rate is automatically lower. However, what you will have to pay out-of-pocket will be much higher. Inversely, with a lower deductible, your auto insurance rate is higher and comes with a lower out-of-pocket cost. When choosing your deductible, it is always helpful to factor in your vehicle’s overall cost and the likelihood of your filing a claim.
If you need more help figuring out your auto insurance deductible, don’t hesitate to leave us a comment down below! Be sure to Like and Subscribe to our channel, and enable notifications too! Catch you in our next video!