Car Insurance Excess: To Excess Or Not To Excess? That is the Great Adulting Question.

Would you rather pay more now or later? That’s the excess question! It’s like buying a new TV on credit—you could pay it off in small monthly installments (but end up paying way more in the long run) or pay upfront and be done with it. When it comes to car insurance, the logic works in reverse: pay more now with higher premiums and have a smaller excess when you claim, or pay less each month and be prepared to fork out some hard-earned cash when something goes wrong.

Welcome to one of life’s great adulting conundrums. Let’s break it down.

What Is an Insurance Excess?

Your insurance excess is the amount you agree to pay upfront when you claim. The insurer covers the rest. It’s like a security deposit on your driving habits—low excess means you’ve already prepaid your fair share through higher premiums, while high excess means you’re betting on not needing to claim anytime soon.

So, should you go for a higher excess (cheaper monthly premiums, but big bills if something happens) or a lower excess (higher premiums, but fewer out-of-pocket surprises)?

The answer? It depends on your budget and appetite for risk-taking. But one thing is for sure—comparing your options is key. One website. A few clicks. In just a few minutes, hippo.co.za shows you deals from South Africa’s top insurers, helping you make an informed decision.

What Happens When You Increase Your Excess?

Lower Monthly Premiums

The biggest advantage? You pay less each month for your car insurance. That’s money back in your pocket for more important things—like petrol, weekend road trips, or saving up for something that’s far more fun than car insurance.

Higher Out-of-Pocket Costs

But here’s the catch: if you have to claim, you’ll need to cough up a bigger chunk of cash upfront. That means your rainy-day fund needs to be more of a monsoon-proof stash. It requires financial diligence, which can be tough, even when you’re adulting hard.

Insurers See You as a Lower Risk

Choosing a higher excess won’t change how insurers assess your risk — that part’s already baked into your base premium. But it can lower your monthly payments, since you're agreeing to cover more of the cost if something goes wrong. It’s really about what works for your wallet if you ever need to claim.

The Pros of Increasing Your Excess

✅ Cheaper Insurance Premiums – Lower monthly costs mean more financial flexibility.

✅ Good for Low-Risk Drivers – If you’re a careful driver with an accident-free record, this is a smart way to save.

✅ Avoiding Small Claims – Keeping minor car insurance claims off your history can help maintain lower premiums long-term.

The Cons of Increasing Your Excess

❌ Big Bills When You Claim – Accidents happen, and when they do, you’ll need the cash ready.

❌ Not Ideal for Frequent Claimers – If you’ve been in more fender benders than you’d like to admit, a high excess might cost you more in the long run.

❌ Unexpected Costs Can Hurt – A high excess means an emergency fund isn’t just nice to have—it’s essential.

NOTE: Even if you switch insurance companies, your claims record is still visible to them.

How to Decide: Is a Higher or Lower Excess Better for You?

🔹 Consider Your Finances – Can you afford a higher excess if needed, or would a sudden, unexpected cash layout throw your budget into chaos?

🔹 Look at Your Driving Habits – Are you a defensive driver or the kind who’s always “just clipping the side mirror”?

🔹 Compare Insurance Plans – and see which works for your car needs and your budget; for instance how many kms you travel each month. The further you travel, generally the higher the risk.

The good news? Hippo.co.za makes it easy to find the right fit for your needs. Instead of calling multiple insurers, simply hop onto Hippo, compare deals side by side, and choose the one that works best for your budget—all in just a few clicks and few minutes.

Final Thought: Adulting is Hard, But Comparing Insurance is Easy

Choosing the right excess level is like deciding whether to pay upfront or spread the cost—it depends on your risk appetite, budget, and driving confidence. But one thing is simple: comparing car insurance quotes on hippo.co.za can help you find the best deal, whether you want low monthly premiums or peace of mind with a lower excess.

One website. A few clicks. In just a few minutes, you could be saving on your car insurance.

Because saving money on car insurance? Now that’s an adulting win with Hippo.