What Does Excess Mean in Car Insurance?
The excess is the amount you pay yourself each time you claim. The insurer pays the rest of the claim, up to your cover limit. It's the most overlooked number on a car insurance quote, and often the reason a "cheap" policy turns out expensive.
A simple example
| Amount | |
|---|---|
| Cost of repairing your car after an accident | R30,000 |
| Your basic excess | – R5,000 |
| The insurer pays | R25,000 |
If the repair costs less than your excess, say R4,000 on a R5,000 excess, there's nothing to claim. That's why small scratches are rarely worth claiming, and why scratch and dent cover exists.
The types of excess
Basic excess
The standard amount on every claim. It's either a fixed amount (for example R5,000) or a percentage of the claim with a minimum, for example 5% of the claim or R5,000, whichever is higher. OUTsurance, for example, uses fixed excesses, while other insurers use percentages.
Additional excesses
Extra amounts added in specific situations. Common ones are:
- The driver is under 25.
- The driver has had a licence for less than two years.
- The driver isn't the regular driver named on the policy.
- A single-vehicle accident (no other car involved).
- An accident late at night.
- Theft or hijacking claims where a required tracker wasn't working.
Voluntary excess
An amount you choose to add to lower your premium. MiWay's flexible excess works this way: move it up for a lower premium, or down for a higher one.
Windscreen excess
Many policies have a separate, smaller excess for glass claims.
How excesses add up
Additional excesses stack on top of the basic excess. Here's an illustration:
| Illustration: a 22-year-old with a 1-year-old licence, single-car accident | Excess |
|---|---|
| Basic excess | R5,000 |
| Additional excess: driver under 25 | R3,000 |
| Additional excess: licence under 2 years | R3,000 |
| Additional excess: single-vehicle accident | R2,500 |
| Total you'd pay | R13,500 |
Illustrative amounts only. Every insurer sets its own excesses, so check the schedule on your quote.
How to choose your excess
- Pick the highest excess you could pay tomorrow without borrowing.
- Ask each insurer for the full excess list, including additional excesses for everyone who drives the car.
- Compare two excess levels on the same quote to see how much the premium really changes.
- Consider an excess waiver only if the monthly cost is small compared with how often you'd claim.
Tip: when you compare car insurance quotes, write down the total excess you'd pay on a typical claim next to each premium. The ranking often changes.
Car insurance excess questions
The excess is the part of a claim you pay yourself. If your repair costs R30,000 and your excess is R5,000, you pay R5,000 and the insurer pays R25,000.
Often you pay it upfront, but you or your insurer may be able to recover it from the driver who caused the accident. Some insurers waive the excess when a known third party is at fault. Check your policy.
It lowers your premium, so it can be, but only if you could pay the higher excess tomorrow without borrowing. A premium saving isn't worth much if you can't afford to claim.
An extra amount added to the basic excess in certain situations, such as when the driver is under 25, has had a licence for less than two years, or was alone in a single-vehicle accident. Additional excesses are added together, so they can add up quickly.
An add-on or separate product that pays some or all of your excess when you claim. It costs extra each month, so compare that with how often you'd realistically claim.
TrackerPrices SA is an independent information site. We are not an insurer or a licensed financial services provider, and nothing here is financial advice. Insurer details are summarised from each insurer's own published information, last checked September 2026. Cover, benefits and prices change, so always confirm them in your quote and policy wording. For a complaint about an insurer you can contact the free National Financial Ombud Scheme.
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