Excess vs Deductible: what is the difference?

Excess vs Deductible: what is the difference?

You have Class 1 insurance, so why are you still asked to pay extra when you make a claim?

The answer usually lies in the term “excess”. What confuses car owners is that the money they have to pay may be an Excess or a Deductible, which arise from different conditions and affect a claim in different ways.

If you can tell these two terms apart before you buy insurance, you can compare premiums more accurately, understand why a policy is cheaper, and prepare the right evidence when something happens.

An excess (deductible) is the first part of the loss that the insured bears themselves, as stated in the policy, with the insurer paying anything above that. There are 2 main types: Excess and Deductible.

In short: An Excess is the first part of the loss that you pay under the policy conditions for certain kinds of incident, while a Deductible is an amount the insured agrees to bear, stated in the policy, in exchange for a lower premium under that plan's rules.

Where do Excess and Deductible differ?

The actual details are always governed by the policy schedule, terms, endorsements and the facts of each accident.

What is an Excess?

An Excess is the first part of the loss that the insured must pay when the incident being claimed meets the conditions set out in the policy.

Under own damage cover, a common condition is that the insured pays the first THB 1,000 of the damage from each accident where the damage was not caused by a collision or overturning, or was caused by a collision but the other party cannot be identified.

Examples that may fall under the Excess condition include:

• You come back to find a scratch on the car but don't know when, where or how it happened
• Your car is hit and the other party drives off, with no registration number, photos or other evidence to identify the vehicle
• There is damage in several places that happened on different days, in different places or from different causes
• The damage was not caused by a collision or overturning and meets the conditions set by the policy

The key point is that an Excess applies to each accident, not always to each part or each mark. If several marks come from the same incident and it can be shown that it was one incident, the insurer should assess it on the facts of that accident, but if they are separate incidents, they may be treated as several.

Hit a post or a wall, or scraped a kerb: do you have to pay an Excess?

Don't judge by the words “no other party” alone.

If it was a genuine collision and you can give the date, time, place and what happened, and clearly identify what you hit, such as a post, wall, gate or kerb, the insurer will assess it on the facts and the policy conditions, rather than assuming you must pay THB 1,000 in every case.

What you should do straight away is photograph the damage, the scene and what the car hit, and report it to the insurer quickly. Don't wait until you can no longer remember the details, because how clearly the incident can be described directly affects how the claim is assessed.

What is a Deductible?

A Deductible is an agreed first part of the loss: the buyer chooses to bear part of the cost themselves, and the insurer states that amount in the policy schedule or an endorsement.

For example, a policy sets a Deductible of THB 5,000 per accident for damage to the car. If a qualifying incident occurs and the repairs cost THB 30,000, the insured pays THB 5,000 and the insurer pays the rest of the damage under the cover and conditions of the policy.

But if the repairs cost only THB 3,000, which is below the Deductible, the insurer may have nothing to pay for that part, because the damage has not gone beyond the amount the insured agreed to bear.

Bear in mind that choosing a THB 5,000 Deductible does not always mean the premium falls by THB 5,000. The premium discount depends on the rate structure, the plan and the insurer's rules, so compare “the actual premium saving” with “the money you are ready to pay when something happens” before deciding.

If you are not at fault, do you still have to pay the Deductible?

If there is another party who is clearly liable and the insurer can recover the cost from them, the Deductible may be handled differently from cases where you are at fault or there is no liable party to pursue. However, don't draw conclusions from what you have been told alone; look at the conditions stated in the policy, the liability decision and the insurer's approach to that claim.

When something happens, notify the insurer or broker straight away, and keep a full record of the registration number, the driver's name, the other party's insurer, the police report, photos and dashcam footage.

Can you have to pay an Excess and a Deductible at the same time?

It can happen. If the policy states a Deductible and the same incident also meets the Excess conditions, both amounts may be taken into account together.

For example, the policy states a THB 5,000 Deductible, and the car is hit by a driver who flees and the other vehicle cannot be identified. The incident may involve both the agreed Deductible and an Excess under the policy conditions, but the amount you actually bear must always be checked by the insurer against the policy schedule and the facts first.

Who is a policy with a Deductible suitable for?

A Deductible may suit people who drive carefully, have few past claims, don't use the car much, have savings set aside for emergencies, and feel that the premium they save is worth the risk they take on themselves.

But it may not suit cars used every day, driven in congested areas or by several drivers or new drivers, or owners who don't want an extra lump-sum cost when something happens.

Don't decide on the premium figure alone, because a cheaper policy may have a Deductible hidden in the comparison table. Questions to ask before you buy:

1. Which part of the cover does the Deductible apply to?
2. How much is it per accident?
3. How much lower is the premium really, compared with a plan without a Deductible?
4. If you are not at fault and the other party can be identified, how does the insurer handle it?
5. Is there an Excess or any other special condition as well?

What evidence should you keep before filing a claim?

• Photograph the whole car and take close-ups of the damage
• Photograph the scene, the marks on the road and any objects involved
• Note the date, time, place and sequence of events while you still remember them
• Keep the other party's registration number and contact details
• Back up dashcam or CCTV footage straight away
• Call the insurer or claims coordinator before admitting liability or paying any money

Complete evidence is not only for avoiding an Excess; it helps the insurer assess the cause, liability and extent of the damage in line with what actually happened.

Frequently asked questions

If you have Class 1 insurance, you never pay an Excess, right?

No. Class 1 insurance gives broad cover, but the policy conditions still include excesses and exclusions. If the incident you report meets the Excess conditions, the insured may still have to pay the first THB 1,000 per accident.

Is the Excess THB 1,000 for each mark?

It is not counted automatically by the number of marks but by the number of accidents. If they came from the same incident and the evidence is consistent, they may count as one, but marks from separate incidents may be charged separately.

Can a dashcam help with Excess problems?

Yes, because the footage can confirm the date, time, place, how the collision happened and details of the other party. However, the insurer will consider it together with other evidence and the policy conditions.

With Class 2+ or 3+ insurance, can you claim for your own car in every case once you pay the Excess?

No. Class 2+ and 3+ insurance have a different scope of own damage cover from Class 1, generally focused on collisions with another vehicle where the other party can be identified. Paying an excess cannot turn an incident outside the cover into one you can claim for.

Summary: before asking “how much do I pay?”, ask “under which condition am I paying?”

Excess and Deductible have one thing in common: both are a first part of the loss that the insured bears, but they arise for different reasons.

• Excess arises from the policy conditions when an incident is of a specified kind
• Deductible arises from an agreement you chose, with the amount stated in the policy

Understanding this correctly helps you choose better-value insurance, file more complete claims and avoid disputes about costs later. Every time before you buy or claim, check the policy schedule, the endorsements and the details of what actually happened, rather than judging by the words “Class 1” or “no other party” alone.

Not sure whether the quote you received includes a Deductible, or why this claim carries an Excess?

Send your policy schedule page or the details of the incident to the Prakanthai.com team for an initial check via LINE Official: @prakanthai

Our team will help explain the conditions clearly before you decide, based on the policy details and the facts of each case.

Note: This content is for general information. Cover and any excess are decided on the policy, endorsements, facts and the insurer's assessment in each case.