When comparing car insurance, the monthly premium is often the first number people consider. However, there is another important cost you need to understand: the excess.
Knowing how your excess works can help you avoid an unpleasant surprise when you need to claim.
What Is a Car Insurance Excess?
An excess is the amount you agree to contribute towards an approved insurance claim. Your insurer then pays the remaining covered amount, subject to your policy’s terms and conditions.
For example, if approved repairs cost R20,000 and your excess is R4,000, you would generally contribute R4,000 while the insurer covers the remaining R16,000.
The actual amount will depend on your policy and the type of claim.
When Would You Pay an Excess?
An excess may apply when claiming for:
- Accident damage
- Theft or hijacking
- Hail or storm damage
- Malicious damage
- Windscreen or glass damage
- Damage caused by an unidentified driver
You may still have to pay an excess even when an accident was not your fault. Your insurer may attempt to recover its costs from the responsible party, but any refund of your excess is not always guaranteed and could take time.
Can You Have More Than One Excess?
Some policies include additional excesses in certain circumstances. These may apply when the driver is below a specified age, has held a licence for only a short period, or is not the vehicle’s regular driver.
An additional excess may also apply at certain times, in specific claim situations, or when the vehicle is repaired by a non-approved repairer.
Read the policy schedule and wording carefully so you understand the total amount you may need to pay.
Choosing the Right Excess
A higher voluntary excess may reduce your monthly premium, but it also increases the amount you must afford when claiming.
Choose an excess that would be manageable during an emergency. Saving a small amount each month is not always worthwhile if the excess would be unaffordable after an accident.
Compare More Than the Premium
Good car insurance should suit both your monthly budget and your ability to pay the excess.
Easy Car Insure helps you explore car insurance options based on your needs and vehicle.
Get a personalised quote today and compare cover with greater confidence.