You pay your insurance premium every month, but do you know what your insurance excess is?
Many South Africans only discover what their excess is when they need to submit a claim—and by then, it can be an expensive surprise.
Simply put, your insurance excess is the amount you agree to pay towards a claim before your insurer pays the remaining approved amount. Understanding how your excess works can help you choose the right policy, avoid unexpected costs, and make better financial decisions.
Let’s break it down.
What Is an Insurance Excess?
Think of your insurance excess as your “skin in the game.”
It is the pre-agreed amount you pay towards an approved insurance claim before your insurer covers the remaining cost.
For example:
If your vehicle repair costs R30,000 and your policy has a R5,000 excess, you’ll pay the first R5,000 and your insurer will pay the remaining R25,000 (subject to your policy terms and conditions).
It’s a partnership—you carry a manageable portion of the risk while your insurer carries the much larger financial burden.
Why Do Insurance Companies Charge an Excess?
Many people think an excess is a penalty.
It isn’t.
Insurance excesses exist to help keep insurance affordable for everyone.
Without an excess, insurers would receive thousands of claims for every minor scratch, dent, chipped windscreen, or bumper scuff. Those administration and repair costs would eventually increase premiums for everyone.
The excess helps filter out smaller claims so insurers can continue protecting clients against significant financial losses.
How Does an Insurance Excess Work?
Let’s look at a simple example.
Vehicle Repair Cost
R30,000
Your Excess
R5,000
Insurance Pays
R25,000
The amount you pay is your agreed excess.
Your insurer then settles the remaining approved claim amount according to your policy.
Can Choosing a Lower Premium Cost You More?
This is one of the biggest mistakes people make.
A cheaper monthly premium often comes with a much higher excess.
Saving R100 per month might seem like a smart decision—until you suddenly need to find R15,000 before your vehicle can be repaired.
A lower premium isn’t always the better deal.
The right excess is one you could comfortably afford if you needed to claim tomorrow.
What Types of Insurance Excess Should You Check?
Before renewing your policy, check your policy schedule for these common excesses.
Basic Excess
The standard amount you agree to pay whenever you claim.
Voluntary Excess
An additional excess you choose in exchange for a lower monthly premium.
If you’ve selected a voluntary excess, make sure you could actually afford it during an emergency.
Additional Driver or Age Excess
Some policies apply an additional excess if the driver is below a certain age, has recently obtained their licence, or wasn’t listed on the policy.
Knowing these amounts before you need to claim can prevent unpleasant surprises.
Know Your Excess Before You Need It
One number on your policy could have the biggest impact when it’s time to claim.
Understanding your excess today can help you avoid unnecessary financial stress tomorrow.
Take a few minutes to review your policy schedule.
If you’re unsure whether your excess is appropriate—or whether your policy still suits your needs—we’re happy to help you understand your cover.
No pressure.
Just straight answers.
Relax, man. We’ve got you covered.
In most cases, yes. However, depending on your policy wording and the circumstances of the claim, your insurer may waive the excess in certain situations. Always check your policy schedule or speak to your broker.
If another driver is responsible for the accident and liability is successfully recovered, your insurer may also recover your excess from the responsible party. The outcome depends on the circumstances and available evidence.
Many insurers allow you to select a voluntary excess. Choosing a higher excess generally reduces your monthly premium, while choosing a lower excess usually increases it.
A voluntary excess is an additional amount you agree to pay towards a claim in exchange for a lower monthly premium.
Yes. In South Africa, the term excess is commonly used, while some international insurers refer to it as a deductible.
In most cases, yes. If theft is covered under your policy, your policy excess generally still applies unless your policy specifically states otherwise.
If you can’t afford your excess, repairs or settlement of your claim may be delayed until the excess has been paid. This is why it’s important to choose an excess you could realistically afford if you needed to claim.