Top 10 Tips for Understanding Motor Insurance Excess Cover,
The top 10 things you need to know about excess payments.
- The excess amount is the first amount payable by you when your claim is settled or paid out.
- It serves to motivate you to be more responsible, to take better care of your valuables and to prevent small, petty claims.
- Your excess payment will need to be paid directly to the service provider.
- If your claim is settled in cash, your insurance company will deduct the excess from the final payout amount.
- If the accident was not your fault, you’ll still need to pay an excess, but the legal team will try to recover the cost from the guilty party.
- A voluntary excess means that you’re paying a higher excess to enjoy a lower monthly insurance premium.
- Many insurers will charge you a proportionate excess (i.e you pay a set percentage of the final claim amount).
- Some insurers charge different excesses, depending on the nature of your claim (i.e. car theft vs. car accident).
- Some insurers will charge you an additional excess amount (on top of your usual excess) simply because you had no previous insurance or because you claimed during your first three months of cover.
- If your car insurance is insured with OUTsurance, you’ll only pay one fixed excess, always.
AT OUTsurance, you pay a fixed excess amount, always.
Different to many other insurers, we only charge a fixed excess – irrespective of the nature of your claim or the claim amount. Your default vehicle excess is usually set at around R4 010, but we’re happy to fix this at a different amount, depending on what suits your budget best. This fixed amount will then apply to any and all vehicle-related claims.
If you’re retired and older than 60, excess payments do not apply to you!
At OUTsurance, the one and only time an additional excess will apply is when someone else (who is under the age of 25) drives your car and gets into an accident. Other than that – you’re excess stays fixed.
Insured somewhere else? You may be paying proportionate excesses.
If you’re not insured with OUTsurance, you may be asked to pay a proportionate excess. This means that you’ll be liable to pay a set percentage of the actual claim amount. Depending on where you’re insured, this can mean anything between 5-10% of the total damages.
For example: If your car gets stolen and the value of your car was set at R110 000 with a proportionate excess set at 10%, you’ll need to pay an excess of R11 000.
Other insurers often charge additional excesses.
If you’re not insured with us, you may need to pay your insurer an additional excess (on top of your usual excess) in case:s
- the driver has a license other than code 08 / B / EB
- the driver has no previous insurance
- the driver only has a learner’s license
- you claim during your first three months of cover
- you claim for the same type of incident in the same 12-month period
- you obtained your driver’s license less than two years ago
- the incident driver is not the regular driver
- there’s no third party involved
- if you’re under a specified age
- if the regular driver is female and the incident driver is not
- if the accident occurs outside of South African borders
- if the event occurs between midnight and 5 o’clock the next morning.