What is an Excess Fee?
Reena Hamid
Last Update há 2 anos
The excess is the maximum amount you would have to pay towards repairing or replacing a rental car if it gets damaged or stolen. Here's a simplified explanation of the concept:
Excess Amount:
Most rental car agreements include an excess, which typically ranges from RM 500.00 to RM 8,500.00. This is the limit of your financial responsibility.
Paying the Excess:
If damage occurs and the cost of repairs is less than or equal to the excess, you will only need to pay the actual repair cost. For example, if the damage repair costs RM 250.00, you would pay RM 250.00, regardless of how much your excess fee is.
Exclusions:
However, this LRO will not cover negligence, tyre punctures and burst tires, fuel errors, lack of electricity because of careless or forgotten turned-off electrical devices, and loss or damage to the vehicle accessories.
Invalidating the Policies:
Breaking the rules outlined in the rental agreement can invalidate the damage and theft policies. For example, not being named as a driver on the agreement, or engaging in reckless driving behavior would invalidate the Collision Damage Waiver.
To reduce your financial risk, you can purchase Liability Reduction Option (LRO) insurance. These optional products can help reduce or eliminate your financial liability in case of an accident or theft.