Car Insurance Excess Q&A

Important note:

The following questions are to be used as a reference guide only and do not substitute or replace your insurance contract, the PDS or Certificate of Insurance.

What is a car insurance excess?

An excess is the amount you need to contribute towards the cost of repairing your car if you make a claim. To make car insurance premiums more reasonable for everyone, we include an excess in your policy. Then, when you make a claim, you’ll need to pay your excess(es).

There are different types of excesses depending on what your claim relates to, who was driving your car and the type of cover you have chosen. If your claim is for more than one accident or event, you or the driver will have to pay the excess for each accident or event. You can find the amount of excess you’ll need to pay on your Certificate of Insurance.

When will I need to pay an excess?

In the event of a claim and you are required to pay an excess(es), then we will ask you to pay:

  • your excess(es) to the repairer when you pick up your car; or
  • directly to us before you pick up your car or we settle a claim on our behalf; or
  • we may deduct your excess(es) from the amount we agreed to pay you

An additional excess may apply in the event of a claim if the car is being driven by a learner driver.

How does the excess amount affect the premium I pay?

The excess is the amount you contribute towards a claim, therefore, if you are willing to contribute more at the time of a claim (higher excess) you will have a lower premium during the policy period. A lower excess would mean you would pay a higher premium. But remember, while your premiums will be cheaper now, you will have to pay more if you ever have to claim.

Can I change my car insurance excess?

You have the flexibility to increase your excess at any time during your car insurance policy. However, you can only decrease your excess when renewing your policy or during the 14 day cooling off period if you have not made a claim.

Are there any additional excesses for car insurance?

Yes, there are. Your basic excess will apply as the first payable amount (excess) at the time of a claim. Depending on the circumstances of the incident and who the driver was at the time, the following excesses may also be applicable:

  • Age excess
  • Inexperienced driver excess
  • Learner driver excess
  • Undeclared young driver excess
  • Outside odometer excess (if Pay As You Drive cover selected)

If you have any questions about excesses and your Real Insurance car insurance policy, please call us on 13 19 48  or check your Real Car Insurance Product Disclosure Statement.

Do I have to pay an excess if the accident/incident is not my fault?

You may not need to pay an excess if:

  • you are not at fault and you can provide us with the details of the responsible party such as the name and address of the other driver/owner of the other car and registration number; or
  • the damage did not involve another car and you are able to identify the other party responsible and provide their name and address.