Car Insurance Excess Explained

Sheen Panel Service on 27 September 2019

Owning a vehicle comes with many responsibilities. You have to keep it maintained, and registered, and you can also choose to insure your vehicle against damage. Most types of car insurance are not compulsory (with the exception of CTP insurance for personal injury which forms part of your registration) but many people choose to get insurance for peace of mind and protection in the event of a car accident.

If you are in an accident, you may need to pay insurance excess. If you are unsure of what car insurance excess is and how it works, this article covers everything you need to know.

At Sheen Panel Service, we are in the business of getting back on the road sooner after an accident. If you've been in a car incident on the road, Upload your smash for accurate quotes on emergency towing and panel beating.

What is car insurance excess?

Car insurance excess is amount that you pay towards a claim for repairs when you are in an accident. If you were in an accident that was not your fault, you will likely not need to pay the insurance excess. This will be covered by the other driver's insurance provider. 

  • Certain factors may require you to pay more than one type of excess. Things like being under 25 years of age and being on a provisional licence may impact on the amount you pay.
  • Any excess you are liable for is shown on your insurance certificate.
  • If you make a claim on your insurance for a motor vehicle accident, you will be advised what the excess is and how to pay it. 

Insurance excess is a standard part of your insurance responsibilities and you can shop around for a price and excess that suits your risk profile and financial needs. But always remember, you get what you pay for. You shouldn't skim on things like choice of repairer just to bring down your premium or excess.

car insurance excess

Why do I have to pay excess?

Car insurance claims have a high administrative cost. The reason why insurers include an excess is to keep the costs of the policy premiums down. You don't pay this excess until you need to draw on your insurance.

Excess for young drivers

Insurance policies are calculated around risk. Younger drivers are considered to be a higher risk because they do not have as much experience as older drivers and so their likelihood of getting into an accident is higher.

  • Young drivers do have to pay a higher excess. This does decrease after a certain age, usually around 25 years of age.
  • You have an option to pay a higher insurance premium to decrease your overall excess.

What to do if you can't afford excess

Accidents can come out of nowhere. In some cases you may not have the funds available to make the payment of your insurance excess in one go. While insurance excess is usually expected as a lump sum amount, you may be able to speak to your insurer about paying in instalments. 

  • Instalment payments may be an option for drivers who are experiencing financial hardship.
  • Speak to your insurance provider directly about this as an option, or about getting an extension on the time to pay.

How much you can expect to pay

The amount of excess you can expect to pay will vary from insurer to insurer, and the excess will differ depending on the policy you choose. You also have the option of selecting a cheaper or more expensive policy, which may alter the cost of your insurance excess. 

  • Car insurance excess will vary depending on your age, experience, and the price of your premium.
  • Insurance excess can range between a few hundred dollars to over a thousand if you are under 25 years of age. 

How much should I be paying?

You can opt to pay more for your insurance premium if you would like to reduce the amount of excess you pay in the event of an accident. If the accident was not your fault, you are not going to pay any excess.

  • You can choose to pay more for features on your insurance that are important to you, such as windscreen excess and choice of repairer.
  • There are some excesses that you cannot opt out of, such as the inexperienced driver excess and the young driver excess.

Contact Sheen Panel Service For Swift Smash Repair

contact sheen for car insurance help

Been in an accident? We can take care of the entire process for you. We work with all insurers which means you will be assisted throughout the claims process by our friendly team. Simply call us after an accident and we can arrange to get your vehicle towed to our workshop, or you can drive it to us if safe to do so. We can even come to you.  

Sheen Panel Service is here to get you back on the road as soon as possible. Upload your smash today, and we'll get back to you with accurate quotes, allowing you to fully understand how much your panel beating will cost.