What is an insurance deductible (excess)?

A deductible (or excess) is the first portion of the repair bill that you must pay out of your own pocket when you are at fault in an accident, or when the at-fault party cannot be identified. The insurance company covers the remaining repair costs after you pay this initial amount.

When do I have to pay the deductible when filing an insurance claim?

You only pay when you are at fault, or when you are hit by an unidentified party. You pay the repair shop directly on the day you drop off the car. If you are not at fault, you pay absolutely nothing.

Is a zero-deductible EV insurance policy better?

A zero-deductible policy is ideal for new drivers, frequent drivers, or those navigating congested areas like Bangkok. For most careful, everyday drivers, choosing a 3,000 THB deductible is the most popular and recommended option because it significantly reduces your annual premium while keeping your out-of-pocket risk manageable.

What Is an Insurance Deductible?

Q: What is the difference between Excess and Deductible?

Excess is the mandatory 1,000 THB you pay when the at-fault party cannot be found (e.g., hit-and-run). Deductible is a voluntary amount you choose (e.g., 3,000 THB) when purchasing your policy, in exchange for a lower annual premium.

Q: Are EV excess fees more expensive than regular cars?

The basic mandatory 1,000 THB excess is the same as petrol cars. However, for EVs with a named-driver policy, if an unnamed person drives and causes an accident, the mandatory excess jumps significantly — 6,000 THB (for your car) + 2,000 THB (for the other party's car).

Written by: Thanawat

Insurance Actuary | Real experience, straight talk — no fluff

Many people have browsed forum threads about car insurance deductibles and seen frustrated posts saying, "Wait — why do I have to pay out of my own pocket when I file an insurance claim?!" This right here is the moment most people discover the truth — and it usually happens after the accident has already happened. Let me put it simply. What is a deductible? It is the first chunk of money you have to pay yourself when you get into an accident and you happen to be the one at fault, or when there is no identifiable party to hold responsible. All of these conditions are written somewhere in your policy — but the language is dense and hard to read. So today, I am going to decode the insurance jargon in plain, straightforward terms. We will figure out what kind of policy your EV needs, when you actually have to pay, and whether accepting a deductible is really worth it. Let's dive in.

What Is the Difference Between Excess and Deductible?

When people talk about the "deductible" in Thailand, they are actually using one word to describe two separate concepts that often get mixed up. Let's settle this once and for all:

What is Excess? This is the "mandatory deductible" (required by OIC regulations). It is normally 1,000 THB per incident. You are charged this amount when you bring your car in for a claim but "cannot identify what you hit or when the damage occurred." Classic examples: parking at a mall and returning to find someone sideswiped you, a rock chips your windshield on the highway, or scratches appear out of nowhere and you have no idea who did it.
What is a Deductible? This is the "voluntary deductible." It is an amount you proactively agree to when buying your insurance (for example, you specify 1,000, 3,000, or 5,000 THB) in exchange for a discount on your annual premium.

So what is the difference between a 1,000 and 3,000 THB deductible? The answer is simple: the more risk you agree to carry yourself (e.g., a 3,000 THB deductible), the cheaper your annual premium becomes compared to someone who only accepts a 1,000 THB deductible. It is like telling the insurance company, "Hey, if it is a minor bump, I will chip in part of the cost myself." And the insurer rewards you by lowering your annual rate.

When Do You Actually Have to Pay the Deductible?

A lot of people worry, "When do I have to pay the deductible on an insurance claim?" Just remember these three simple rules:

You are NOT at fault (the other party is clearly identified): You do not have to pay a single baht! The insurance company will go after the other party to recover costs on their own.
You ARE at fault (you hit someone else, or reversed into your own gate): If you bought a policy with a voluntary deductible attached (e.g., 3,000 THB), you have to pay that first 3,000 THB when you drop the car off at the repair shop. The insurance company clears the rest of the repair bill in full.
Your car has damage but you cannot identify who did it (hit-and-run): This is where you get charged the mandatory 1,000 THB Excess per incident.

Are EV Deductibles More Expensive Than Regular Cars?

For people who have recently switched to an EV, a common concern is: "Are EV excess fees more expensive than regular cars?" The answer is: the basic mandatory 1,000 THB Excess is exactly the same as a regular petrol car.

But hold on — the newer EV insurance regulations have one area that is stricter than petrol cars, and that is "named driver" policies. If your EV insurance policy lists specific named drivers and you let someone not on that list drive the car, and they end up in a collision, you will be hit with a significantly higher excess immediately: 6,000 THB (for repairing your own car) + 2,000 THB (for repairing the other party's car), totaling 8,000 THB! So whether you have MG insurance or BYD insurance, double-check the conditions and make sure the right names are on the policy.

Is Choosing a Policy with a Deductible Worth It?

Another very popular question is: "How much cheaper is a policy with a deductible?" (Even though people often say "excess" here, they really mean the voluntary deductible.) Generally, it will lower your annual premium by around 10–20%. If you are confident you are a skilled driver, have never been in an accident, and always park in safe, covered spots, accepting a deductible of 3,000–5,000 THB is an excellent deal — because you will save several thousand baht on your premium every year.

But if you ask me, from the perspective of someone who works with EV insurance every day, "Is a zero-deductible EV policy better?" — here is my honest advice.

For most everyday drivers who are reasonably careful, the plan with a 3,000 THB deductible is the most popular choice and the one I recommend the most. It significantly reduces your annual premium and delivers excellent value.

However, for customers who are new drivers, drive very frequently, or have to battle through congested urban areas like Bangkok on a daily basis, choosing Class 1 EV insurance with zero deductible at all is the better fit. It buys you 100% peace of mind — the moment you have an accident, the insurance pays the entire bill from the very first baht. No drama, no digging into your own pocket at the repair shop.

Real-World Example: If You Crash Your Tesla, How Much Do You Pay?

Let's run through a concrete example to make this crystal clear. Suppose you are driving your Tesla and accidentally reverse into a planter in front of your house. (This means you are 100% at fault.)

The service center quotes the rear bumper repair and repaint at: 40,000 THB
Your policy has a voluntary deductible set at: 5,000 THB

Your final bill: You have to pay the service center the first 5,000 THB out of your own pocket. The remaining 35,000 THB is handled directly by the insurance company — they will transfer the money to the service center themselves.

Summary: Which Option Should You Choose?

Short and sweet: if you are an everyday driver who is reasonably careful, I recommend choosing a plan with a 3,000 THB deductible. It is the most popular configuration and gives you the best premium savings for the value. But if you are a new driver, drive very often, or have to wrestle through dense urban traffic in places like Bangkok on a regular basis, choosing a plan with zero deductible (0 THB) will suit you better and give you far more peace of mind.

For anyone who wants to see the actual premium difference — with and without a deductible — for your specific car and figure out whether the risk is worth it, I recommend trying our real-time EV insurance comparison tool. You will see the actual numbers from each insurer side by side, making the decision much easier.

Steps and process for claiming an insurance deductible

Tips for choosing the right deductible that fits your needs

Want to see the real options? Browse EV insurance for every brand we cover, with starting premiums for each model, on the PrakanEV homepage.

What Is an Insurance Deductible (Excess)? How Much You Pay When Filing a Claim — 2026 Guide