Understanding your insurance excess: What you need to know before making a claim

For many motorists, the first time they truly pay attention to their insurance policy is when they need to submit a claim after an accident. One of the most common areas of confusion is the excess, the portion of the claim you are responsible for paying out of your own pocket.

SAMBRA regularly receives queries from customers who are uncertain about how their excess works. SAMBRA represents almost 1,000 motor body repair businesses across South Africa and accounts for the majority of all insured repair claims in the country.

The primary purpose of an excess is to discourage small or unnecessary claims. It ensures that insurance is used for significant, unaffordable losses rather than minor repairs, which keeps premiums more affordable for everyone.

Excesses can vary depending on your policy:

• Standard/basic excess: The insurer’s standard excess for your type of insurance.
• Voluntary excess: An additional amount you agree to pay in exchange for lower monthly premiums.
• Additional excess: Applied if you are deemed high-risk, such as being under 25 years of age or having a licence for less than two years.
• Imposed excess: Applied due to your claim history or other risk factors.

Some motorists also consider an “excess protector” policy, which covers the agreed excess portion in the event of a claim. It’s important that insurers clearly explain these options at the outset or whenever changes occur, so that policyholders know exactly what to expect.

Another key question is who recovers the excess if another party caused the accident. Insurers may attempt to recover this from the other driver’s insurer, but there is no obligation to do so. If your insurer doesn’t pursue recovery, you are entitled to do so yourself with their permission. Many motorists don’t realise this, but it can make the difference between losing and recouping that excess amount.

And if you are unhappy with your excess?  It is advisable that you pay it upfront to avoid delays in repairs or incurring additional costs, and then take up the dispute with your insurer.

The National Financial Ombud (NFO) advises that if you're considering a voluntary excess to reduce premiums, be sure to:

1. Understand both compulsory and voluntary excesses in your policy.
2. Have clarity on exactly how much bolded in Rand or percentage you're liable to pay at claim time.
3. Review exclusions carefully; they are often behind claim disputes.
4. Compare insurers on offerings like excess waiver options or other protective add-ons.

If your claim has been reduced or rejected due to excess or related policy terms and you feel it wasn’t properly disclosed or fair, you can approach the NFO, but note that clear communication at the point of sale is key.

Understanding your excess puts you in a far stronger position when an accident happens. Take the time to discuss your options with your insurer and choose a balance that works for your financial situation. At the end of the day, being informed is the best protection you can have.

* Hanekom is the national director of the South African Motor Body Repairers’ Association (SAMBRA).

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