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What Is Car Insurance Excess Cover? Compare High or Low

When thinking of car insurance excess in South Africa, we are overwhelmed by so many questions that it is hard to set out mind into only a single thing a decide. Which insurance is best for me? Is comprehensive insurance the best option or should I go for another cover? Is insurance for third party enough? When it comes to car insurance excess, there isn’t much deciding though. Excess is compulsory and it is therefore not a choice. There are, however, details that we should take into account to make the best decision possible and information we may not know about. Find out about excess fees, insurance quotes, basic excess, excess cover, differences between compulsory and voluntary excess and more.

What does excess in car insurance mean?

There are many concepts that are still hard to understand and so it is important to find the answers before you apply for vehicle insurance. When talking about car insurance excess, what is being referred to in this case is the amount that the company will ask a client to pay when they make a claim on their policy. The client agrees to contribute this amount towards the claim’s cost. The insurer will have to make sure to cover the amount that remains. Imagine that a client makes a claim for a total of $3000 damage to a vehicle and the policy they have is of $500 excess. This means that the client will be able to cover only $500 of the costs for repair and the remaining $2,500 for the bill will be footed by the insurer.

What is car insurance excess cover?

Excess cover applies when dealing with rental cars. It is an optional insurance policy aimed at protecting a client against possible excess charges that may take place in the case you hire a car and it get stolen or damaged. This excess cover does not apply though for car insurance itself but for those cases in which you hire a vehicle. Imagine for instance that you decide to travel and have to hire a car. Now, while you are driving the vehicle you find yourself to be involved in an accident. If this is the case, the company where you hired the vehicle has an option for excess cover so that you can be protected against certain charges for the vehicle being damaged.

How does insurance excess work?

Many clients have doubts regarding insurance excess, especially how it works. Now, imagine you have a policy with an R 935, 92 excess and you find yourself in an accident. The cost of repair is of R 19.648,26. This means that the company will pay R 18.709. Therefore, you would have to pay the R 935, 45 excess. The bill would be paid in full in this case. Another possible scenario would be the following: you may suffer a broken door mirror. The change of the lens costs R375, 26. This value is less than your excess, which means that the client cannot make a claim for it. In this case, the repair is quite affordable though. An excess will help you deal with certain situations and to settle for certain repair bills that would otherwise be inconvenient to pay. In general, there are two types of excess: voluntary and compulsory.

What is car insurance excess against theft?

Insurance excess against theft is a sort of protection in case your vehicle gets stolen. You do not have to cover for the cost of replacing the vehicle in full. You would have to pay on the policy for theft protection only the excess. In case a vehicle is stolen, you can access theft protection. Imagine that someone steals a vehicle valued at R750528,29. This means that you will not have to pay for a brand new vehicle but you will only afford the excess. In general, bigger excesses can be due to bigger vehicles. If the excess of a vehicle is way too high, there are vehicles with lower excess.

What is car insurance glass excess?

This is the same as with theft. You are given insurance and you will have to pay excess in case a glass of your vehicle is broken. Now, there are some things you should take into account:

  • The coverage will and the company you have chosen will have a say on the impact on your rate’s claim

  • A windshield claim may affect the rate of yours

  • A collision claim though will affect much more your rate

  • When the rates increases are being determined, the amount paid out on the claim will be considered by the companies.

  • Clients may have to get in touch with their companies in order to find out the coverage of their specific policies and find out too how it will affect their rates in the near future.

  • Some companies may offer repairs regarding free windshield under coverage classified as comprehensive.

Is there excess free car insurance?

In general, there is no car insurance free of excess. The insurer will set the compulsory excess. The voluntary excess will be chosen by you in order to pay on top. Inexperienced driver and sometimes young driver will have an additional excess. Some companies cover:

  • Damages to your vehicle in case you have comprehensive insurance

  • Claims for theft and fire

  • Driver claims that are uninsured

Some companies do not cover for:

  • Claims where there is no excess to afford

  • Repairs to your own vehicle in case you have third party only policy

  • The excess for replacement and windscreen repair

  • The excess for damage because of miss fuelling or breakdown

Is there cheap car insurance low excess?

In general, the amount of excess is determined by a series of factors so it is difficult to determine whether there is cheap vehicle insurance with low excess. The rule though is that the bigger or newer the vehicle, the higher the excess. In case you are looking for cheaper options, then you should contact some agencies in South Africa and compare what they have to offer you. The conditions in the market are constantly changing and so they may offer different excess amounts.

Is car insurance excess tax deductible?

This is a classical question that comes to our mind when thinking of car insurance excess. Is it deductible of tax? There are some tax deductions possible and available for premiums, depending on the form of insurance cover. Now, clients should be aware of the fact that there are certain rules for claiming deduction. If the insurance is shown to relate to earning an income that is assessable, then there are probabilities that a deduction for insurance premium will be allowed.

What is excess buster?

Also know as excess waiver, the excess buster is a concept not everyone is familiar with. It refers to the fact that a client will have to pay an additional amount every month on top of his premium in order not to pay an excess in case they need to make a claim. There are some companies, though, that do not consider this a good option since it does not encourage users and drivers to take and follow preventative measures that would prevent otherwise damage to their possessions.

Can I pay my car insurance excess in installments?

When in trouble or difficult times financially speaking, it is always a relief to find solutions when the due date for paying comes. There are different solutions that you can ask for or attain when you need to pay car insurance excess and you are going through a dry day. You should know the following:

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  • Excess is in general payable, especially if you seem to have contributed to the accident

  • It may be hard for you to afford the cost upfront, so it is always recommendable to have comprehensive insurance

  • In case you have comprehensive insurance, you can pay the insurer the excess in installments. Then, your vehicle would be repaired. Another option is to have it deduct it from the client’s pay out in case the insurer cashes settle the client.

  • In case you have third party insurance, you can have it deducted from the payout when the claim for fault parties takes place.

When do you pay excess on car insurance?

In general and as it was previously stated, you will have to pay excess on car insurance if you make a claim on your policy. That is the moment in which you will have to pay the amount of money given. If you happen to make a claim for R18763, 21, and the excess is of R 9381,60, the client will have to foot the bill for the latter amount and the insurer will have to pay the remaining amount. Clients generally have to pay excess on car insurance when an accident takes place and that is the point of car excess, that is, to prevent drivers and clients from having to turn to claims and encourage them to avoid this kind of behavior.

What car insurance excess should I have?

The cost of insurance will have a say on your preference when choosing vehicle insurance. The age of the vehicle as well as the power of it will affect the cost. You should know that you will have compulsory excess and voluntary. When it comes to compulsory excess, you do not get to choose it.

  • This minimum amount is issued and stipulated by the insurer and you will have to pay it towards a claim.

  • The amount can’t be changed based on your preferences or personal situation

  • Insurers set the figure in order to reflect the client’s risk level, while taking into consideration other factors such as claim history, age, engine size, parking, etc.

What is car insurance total excess?

Car insurance total excess is the same as the compulsory excess previously mentioned. Now, if you decide to go for voluntary excess, it would be included in your total excess. Voluntary excess is an amount that you choose to pay towards a claim. The price of your policy will decrease if you pay a higher amount. Remember that it is optional so you get to decide if you want to have it included in your policy. Compulsory excess can’t be changed though, since it is set by the insurer. You can change your voluntary excess, since you will be given a range by the insurer and you will be able to pick a figure. Compulsory excess may fluctuate among drivers. Those that are considered high risk, such as drivers under 25 years old, will have an excess that is higher.

What is car insurance basic excess?

In this case, we are talking about car insurance compulsory excess, without the voluntary, optional excess. It is the excess that is included under all terms and regulations. This means that all drivers without a doubt are having excess included when they apply for insurance. If they decide to go for voluntary excess (that is, besides the compulsory one) they can do that and they can reach a number of their preference. Basic excess though will be decided and set by the company you decide to work with.

Are there any car excess insurance quotes?

Unfortunately, there aren’t any. Quotes you can find for vehicle insurance. However, for excess is a different deal since companies set this value and it is compulsory. In case you want to compare the compulsory excesses from different companies, you can do so by asking each company. Sometimes excess has to do also with the type of vehicle insurance that you choose. There are the certain types:

  • Comprehensive vehicle insurance

  • Rideshare insurance

  • Theft car insurance

  • Third party fire insurance

  • Caravan insurance

  • CTOP insurance

  • Third party insurance

  • Boat insurance

  • Caravan insurance

Can I do a car insurance comparison for high or low excess?

In general, there will be high or low excess depending on the vehicle you choose. When you have a big vehicle that is brand new, the excess will be more expensive. If your vehicle is small and outdated perhaps, your excess will be lower. Some websites in South Africa offer you the display of comparison between different companies and the insurance plans they offer. However, it is not so common to see the display of excess since generally is set by the company and there are no “offers” since there is compulsory excess.

Is there a car insurance excess average?

The average for car insurance excess will depend on certain factors. In general, there is no fixed number or an average number. The excess is set by the company that you pick. You can see the different agencies that offer insurance and ask about the price of excess. In general, they do not provide customers with these values or calculators that would help calculate excess. Calculators were mainly created for calculating insurance, loans, etc.

Is there a car insurance excess fee?

Once again, you do not have to pay a fee when it comes to excess. Excess itself means that you will have to pay money in case you make a claim. If you want to find out about particular excess amounts in a company, you will have to ask for assessment since they do not generally provide clients or drivers with the type of information. Excess is a fixed number that the insurer will ask you to pay, so that would be the actual fee.

Is car insurance excess compulsory then?

Unfortunately, it is. The positive side of it is that you get to choose the voluntary excess and you can evaluate the options between companies. As you can see, there are always questions about high or low excess, basic excess, the options available, excess buster, etc.

What is it?

It is the amount you are asked to pay when you make a claim.

What to take into account?

There are two types: one is voluntary and the other is compulsory. Compulsory excess remains set by the insurer while the voluntary excess is picked by the driver.

How does it work?

When you apply for vehicle insurance, excess is part of your policy.

See what is best for you but always having in mind that excess is compulsory so you cannot change it. Regarding voluntary excess, you can negotiate the amount whenever you consider it appropriate. Explore agencies and other insurance companies to access the insurance deal you always dreamt of. Having the perfect vehicle can be difficult and so it can be finding the right insurance. Explore and find what is best for you, always taking into account that excess is a matter of importance that you need to take into account when thinking of insurance.

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Questions and answers

Is vehicle insurance excess compulsory ?

Yes, it is.

Is there excess for rideshare insurance?

Yes, there is.

Who issues and stipulates the minimum amount to be paid?

The insurer does.

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