Entering the world of insurance can often feel like stepping into a maze, especially when confronted with terms like "excess." Don’t worry! That’s why you have a Broker, it’s our job to make insurance simpler for you to understand, whilst providing you with the best expert advice available. Let’s help you unpack and understand what “Insurance Excess” means and why it seems so confusing and daunting.

What is an Excess?

In simple terms, an excess refers to the first amount you agree to pay towards a claim before your insurance cover kicks in. It acts as a form of self-insurance, sharing the risk with your insurer. Understanding your excess is vital as it directly impacts your out-of-pocket expenses in the event of a claim.

How does it work?

Let's break it down: Imagine you have a claim for R10,000, and your excess is R2,000. You would pay the R2,000, and your insurer covers the remaining R8,000. Essentially, the higher your excess, the more you pay out of your own pocket.

Excess: Saving you money on premiums

While it may seem counterintuitive, having an excess actually helps keep your monthly premiums down. By agreeing to contribute a certain amount towards your claims, you effectively receive a discount on your insurance premiums. It's a balancing act between managing your out-of-pocket expenses and maintaining affordable cover.

Making informed decisions:

Many insurance companies provide flexibility in selecting your excess amount. For instance, opting for a higher excess can result in a lower premium, whereas choosing a lower excess may lead to a higher premium. Understanding the rationale behind excess empowers you to make informed financial decisions that align with your needs and budget.

Still not sure what insurance excess is all about? Our friendly consultants are available to answer any insurance questions you may have, and they’re here to help you find the right insurance for you. They do this by offering you quotes from our panel of some of SA’s top insurers. Let’s get you the advice and insurance you deserve

Get started now by quoting online, request a call back at 0861 001 002, or reach out to us at [email protected]