Excess refers to a fixed amount that you have to pay if you make a car insurance claim. If, for example, your basic excess is R3 000 and the damages to your vehicle amount to R40 000, you will have to pay the first R3 000 and your insurance provider will pay the balance of the claim, i.e., the R37 000.
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Ever looked at an insurance quote and wondered, 'What’s with this excess thing?' Well, never fear, Hippo.co.za is here to demystify car insurance excess and show you how you can balance it with your premiums to make sure your ride stays protected without breaking the bank.
You’ve bought yourself a brand-spanking-new car. To keep it safe on the road and save yourself any financial headaches if anything goes wrong, you’ve decided to take out a car insurance policy.
Excess, whether it’s for your car insurance or other policies, is the amount of money that you agree to pay out of your own pocket when you make a claim. You need to give your insurer this amount before they'll pay out, or you’ll need to pay it before collecting your car when repairs are complete.
The share of the bill that you’re responsible for paying to repair or replace your car if it gets damaged, destroyed, or stolen. If one of these scenarios happens, the insurer will pay out, minus the excess due.
Excess serves several important purposes in the insurance world:
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Excess and premiums are like a seesaw. When one goes up, the other goes down.
If you opt for a lower excess, your monthly premiums will likely be higher. Choosing a higher excess can lower your monthly premiums.
Higher Excess vs Higher Premiums: Pros and Cons
| Pros | Cons |
|---|---|
| Lower upfront costs when claiming. | Higher costs over time with frequent claims. |
| Lower monthly premiums. | Higher upfront costs when claiming. |
| Great for low-risk drivers. | Bigger financial burden when claiming. |
Factors to consider:
Here are some tips to balance premiums and excess:
Understanding the balance between excess and premiums is crucial for financial peace of mind. Compare quotes online with Hippo.co.za to find the best car insurance policy that fits your needs and budget.
Yes! Keep reading to find out more:
Excess is the amount you pay out of your own pocket when you claim from your car insurance. For example, if your repair bill is R15,000 and your excess is R3,000, the insurer pays R12,000, and you pay the rest.
In most cases, yes, you still have to pay the excess upfront. If your insurer can recover costs from the other party, you might get it refunded—but this process can take time and isn’t guaranteed.
Excess can be:
A fixed amount (e.g. R5,000 per claim)
A percentage of the claim
Or both (e.g. R3,000 plus 10% of the claim)
It also depends on your insurance provider, vehicle type, driver age, and claim history.
Yes, most insurers let you choose.
Higher excess = lower monthly premium
Lower excess = higher monthly premium
Choose based on what you can afford in an emergency.
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Use Hippo.co.za to compare premiums side by side—and find the right cover for your lifestyle and wallet.
Smart choices = smart savings.
Welcome to our comprehensive Car Insurance Guide, where we've meticulously compiled essential information, tools, and insights designed to assist you in navigating the complex world of car insurance.
Comprehensive Cover: Offers extensive protection against financial losses from a wide array of incidents involving your vehicle.
Third Party, Fire and Theft: Not only covers damages to others but also protects your car against theft or fire damage.
Third Party Only: Safeguards against the costs of damage to other people and their property, without covering your own vehicle.
Vehicle Use Classification: Helps differentiate personal vs business use, which can affect your policy and premiums.
Insurance Premiums by Age: See how your age affects your car insurance costs and what to expect at different life stages.
Insurance Premiums by Province: Discover how location influences your premium, with insights from various regions in South Africa.
Insurance Demographics: Learn how gender, income, and lifestyle impact car insurance rates and risk profiles.
Exploring Car Insurance Options: Understand the different levels of coverage available to suit your needs.
Impact of Excess on Premiums: Learn how your insurance excess can influence the cost of your premium.
Affordable Car Insurance: Tips for finding cost-effective car insurance coverage for peace of mind.
Insurance Claim Process: A straightforward guide to filing a claim with your insurer.
Car Guide: A guide to South Africa's car brands and typical insurance costs for each.
Car Insurance Values: Understand how different value types (market, retail, trade-in) affect your cover and payout.
Car Insurance Premium: Key tips to reduce your premium and what factors determine your monthly cost.
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Tyre & Rim Guard
South African roads are full of potholes—this we all know. Protect your tyres and rims from damage caused by bad road conditions.
Car Tracker
Many insurance providers prefer for you to have a vehicle tracker installed in your car to minimise the chances of it being stolen, or to assist in recovering a stolen vehicle. Some insurers even offer discounts for it!
Motor Warranty
Extend your manufacturer’s warranty and get cover for the repair or replacement of certain vehicle components.
Service Plan
Keep your vehicle in the tippest, toppest shape with a service plan and cover the costs of scheduled services.
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Can't stand to look at those little scrapes, scratches, and dents that tarnish your otherwise-brilliant-looking car? Scratch & dent will pay to repair small blemishes.
