As men, we like to know how the machine works under the hood. We know the towing capacity of our
bakkies, the wattage of our solar inverters, and the refresh rate of our TVs. But when it comes to
the mechanics of insurance, many guys only look at one number: the monthly premium.
At First 4 Men, we are on a mission to turn those “uh-oh” moments into “we’ve got this” moments.
Part of truly having your back is giving you the straight talk about how the system works. We
aren’t here to hide behind fine print; we are here to build a tribe.
Today, we are taking you behind the scenes to explain a fundamental part of how policies are built:
The Excess.
What is an Excess, Really?
An excess is not a penalty fee for claiming. It is a partnership. It represents the first portion
of the risk that you are responsible for handling yourself, before your insurer steps in to carry
the heavy financial load. Every short-term insurance policy has one.
Why Does the Industry Require an Excess?
To understand the excess, you have to look at how insurance works at its core: pooling risk. We
collect premiums so that when one of our guys suffers a massive loss, the funds are there to make
him whole again.
Imagine if an insurer had to process a claim, send out an assessor, and do the admin for every R400
scratched mirror or R800 dented bumper on the road. The sheer administrative cost would drain the
pool, and as a result, everyone’s monthly premiums would skyrocket to unaffordable levels.
The excess acts as a necessary filter. It ensures that insurance is used for its true, intended
purpose: protecting you against catastrophic, life-altering financial losses (like a written-off
vehicle or a stolen boat). By carrying a portion of the risk on the small bumps, you help keep the
premium pool strong and affordable for the whole tribe.
The Reality Check: The Math of the “Invalid” Claim
While an excess is necessary, it is crucial that you understand how it actually plays out in the real world when things go wrong. Depending on the value of your vehicle and the structure of your cover, your excess can be a significant number.
Let’s look at the math: Let’s say your policy schedule dictates an excess of R13,000.
One afternoon, you misjudge a pillar in a parking lot and scrape your bakkie’s door. The panel beater quotes you R10,000 for the repair.
Because the total cost of the damage (R10,000) is lower than your excess (R13,000), this does not register as a valid claim. The insurer will not pay out, and you cannot claim for it.
This isn’t a trick—it is exactly how the shield is designed to work. The policy is simply standing by, waiting to step in for the massive R800,000 disaster, while the R10,000 inconvenience falls entirely on your side of the partnership.
Protecting Your Cash Flow
A responsible man protects his sanctuary and his tribe. Part of that protection is financial awareness. You need to know what your exposure is before you hit the road so that you aren’t caught off guard by a hefty out-of-pocket expense.
But at First 4 Men, we don’t just point out the risks; we build solutions. We know that taking a massive cash-flow hit during a claim isn’t ideal. That is why we offer tailored solutions designed specifically to protect your wallet and waive or reduce those heavy out-of-pocket costs when you need to claim.
Don’t wait for the tow truck to arrive to find out what your side of the partnership looks like. Pull out your policy schedule today, look at your excess amount, and let’s make sure your financial defense is truly rock solid.
Relax man. We’ve got you covered.
Would you like me to review your policy schedule to make sure your cash flow is protected against high excesses?
Let’s talk. www.first4men.co.za