Do you often get confused when making excess payments on your car insurance policy?
Do you know that some insurers will charge flexible amounts to fit your budget?
Now is the time to drive your premiums down.
What does paying excess mean?
The excess amount is the FIRST AMOUNT PAYABLE that you need to pay when submitting an insurance claim. This is an uninsured portion of your loss.
When you submit a claim, you’ll have to pay an excess. It usually has to be paid out to the repair shop fixing your car once it is repaired before you can leave with your vehicle.
When claiming for small accidents, the person responsible is regarded as irrelevant. This serves to discourage motorists from submitting minor claims and will keep your premiums down.
Why do you have to pay excess on car insurance even if the accident was not your fault?
You will always be responsible for paying excess since the insurer does not place blame as criteria to determine whether you need to pay an excess or not.
Paying an excess amount serves to motivate you to:
- be more responsible,
- take better care of your valuables
- prevent small, petty claims.
Excess payments exist to make you a better road user.
How much excess do you have to pay for car insurance?
The majority of insurance companies charge a flat rate excess fee per vehicle when you claim for car insurance.
In some cases, you will be required to pay a proportionate excess. This means that you’ll be responsible for paying a set percentage of the total claim amount. This can mean anything between 5-10% of the total damages, depending on the insurer.
We recommend that you take out a stand-alone policy that will cover your excess payment. Flexible insurers will allow you to choose a flat rate payment that will suit your budget.
Compulsory Excess vs voluntary excess
Compulsory excess is applied to a policyholder’s plan by the insurer. Usually, compulsory insurance varies across age groups and the type of vehicle.
Voluntary excess involves you setting your own amount (above the compulsory excess) that you are willing to pay. This is a useful option as it will lower your premiums.
What is an excess waiver?
Many insurers offer the option to reduce the excess or waive it entirely in return for an extra premium. This is common in car insurance. Some insurers will automatically waive certain excesses under specific conditions. Many insurance firms will waive the additional excess payable on the car policy if a tracking device is added to a car at the time the theft took place.
Contact your Rodel approved Broker to enquire about an Excess Solutions policy that will cover the first amount payable.
Take the time to choose the type of excess you want to pay
If you choose the “voluntary” option, choose a higher excess amount. Your premium will be lower.
If you choose the RO (nil) option, your premium will be higher.
Do not to choose an excess amount that you won’t be able to pay. A lower excess value might result in higher monthly premiums. At least you know you can afford the excess when needed.
At the end of the day, your goal should be to lower your monthly premiums. Chat to a Rodel approved Broker, who will be able to assist you in choosing a reasonable excess amount to get the most out your personal insurances excess.