Car Insurance Excesses
Understanding Car Insurance Excess in South Africa
If you’ve ever made a car insurance claim, you may have heard the term excess. But what exactly is an excess, and how does it affect your car insurance policy?
In simple terms, an car insurance excess is the amount you agree to pay toward a claim before your insurer covers the rest.
What Is an Excess in Car Insurance?
An excess is the portion of a claim that the policyholder must pay out of pocket when making a claim.
For example, if your car sustains R10,000 worth of damage and your policy has an excess of R2,000, you’ll pay R2,000 and your insurer will cover the remaining R8,000.
The excess amount is set by your insurer and can vary depending on your policy type, vehicle, and driving history.
Types of Excess in Car Insurance
There are two main types of excess you may come across:
- Compulsory Excess – Set by the insurer and cannot be changed. It applies every time you make a claim.
- Voluntary Excess – An optional extra you can add to lower your monthly premium. You agree to pay more if you make a claim.
Some insurers also apply additional excess amounts in certain situations, such as:
- Young or inexperienced drivers
- Unlicensed drivers
- Claims involving theft or hijacking
How Does Excess Affect Your Premium?
Your car insurance premium is directly linked to your excess amount.
| Excess Level | Effect on Monthly Premium |
|---|---|
| Low Excess | Higher monthly cost |
| High Excess | Lower monthly cost |
If you choose a higher excess, your insurer assumes less risk — which usually results in a cheaper monthly payment.
However, this also means you’ll pay more out of pocket if you need to make a claim.
When Do You Pay the Excess?
You only pay your excess when you make a successful claim — and only if fault is not clearly determined in your favor.
Examples include:
- Making a claim on your own comprehensive insurance
- Accidental damage where fault is unclear
- Filing a claim for fire, theft, or weather-related damage
If the accident was caused by another driver and you’re claiming through their insurer, you typically won’t need to pay any excess.
Can You Reduce or Remove Your Excess?
Yes, some insurers allow you to reduce or remove your excess — often for a small additional fee.
This option gives you more protection when you make a claim and ensures you don’t have to pay large amounts upfront.
It’s especially useful if you drive frequently, are a young driver, or want added peace of mind when filing claims.
Who Should Consider Lower Excess?
A lower or zero excess is ideal for:
- New or young drivers – who may be more likely to make a claim
- First-time policyholders – unsure about future risks
- Budget-conscious drivers – looking for predictable costs in case of an accident
Frequently Asked Questions
Q: What is an excess in car insurance?
A: An excess is the amount you pay toward a claim before your insurer covers the rest.
Q: Do I always have to pay the excess?
A: No. You only pay the excess if you file a claim under your own policy.
Q: Can I change my excess after buying a policy?
A: Some insurers allow you to adjust your voluntary excess, but compulsory excesses are fixed, unless you have an excess waiver.
Q: How much should my excess be?
A: It depends on your budget and willingness to take on financial risk. Most drivers choose between R2,000 and R5,000 as standard.
Q: Can I get zero excess cover?
A: Yes, some insurers offer zero excess options — often for a small extra fee.
