Car Insurance Guide

Car insurance excess: how it works in South Africa

Written by Chloe Adams Managing Editor Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 26 July 2026 Our editorial standards →

What is car insurance excess?

Car insurance excess is the amount you pay towards a claim before your insurer pays the rest. If your excess is R4,000 and a repair costs R20,000, you pay R4,000 and the insurer pays R16,000. A higher excess usually means a lower monthly premium, and a lower excess a higher one. Some claims carry extra excesses - for young or unlisted drivers, for example.

Key takeaways

Excess is your share of a claim - the insurer pays the rest.
A higher excess lowers your premium; a lower excess raises it.
A basic (compulsory) excess applies to most claims; voluntary excess is what you choose to add.
Additional excesses can apply for young, newly-licensed or unlisted drivers.
You normally pay excess when you claim at fault; it can be waived or recovered when another party is at fault.

What is car insurance excess?

Your excess (sometimes called the 'first amount payable') is the portion of a claim you cover yourself. When you claim, you pay the excess and your insurer pays the balance up to the insured value.

Example: your excess is R4,000 and an accident repair costs R20,000. You pay R4,000 and your insurer pays R16,000. If a claim costs less than your excess, there is no point claiming - you would pay it all anyway.

Types of car insurance excess

Basic (compulsory) excess - the standard first amount payable set by the insurer on most claims.
Voluntary excess - an extra amount you agree to pay in exchange for a lower premium.
Additional / special excesses - extra amounts for higher-risk situations, such as a driver under 25, a newly-licensed or unlisted driver, or an at-fault accident.
Windscreen / glass excess - glass claims usually carry their own, lower excess.

Your total excess on a claim can be the basic excess plus any additional excesses that apply.

How excess affects your premium

Excess and premium move in opposite directions. Taking a higher voluntary excess lowers your monthly premium because you carry more of any claim yourself. A lower excess means a higher premium. The trick is to choose the highest excess you could comfortably pay at claim time - there is no saving if you cannot afford the excess when you need to claim.

When do you pay excess - and when don't you?

At-fault claims - you pay your excess.
Not-at-fault claims - you often pay the excess upfront, then your insurer recovers it from the at-fault party's insurer and refunds you. Some insurers waive it if you can identify the other driver.
Theft or write-off - an excess usually still applies to the payout.
Windscreen - a reduced glass excess applies, and some policies include glass cover.

How to manage your excess

Choose a voluntary excess that lowers your premium but that you could still afford to pay.
Keep a small emergency fund so an excess never leaves you stranded.
Ask about excess-waiver or excess-reducer add-ons - they cost extra each month, so weigh the cost against the benefit.
Check the additional excesses for young or unlisted drivers before adding a driver to your policy.
Compare quotes - insurers set very different basic excesses for the same cover.

Frequently asked questions

Do I pay excess if the accident wasn't my fault?

Usually you pay the excess upfront when you claim, and your insurer then recovers it from the at-fault party's insurer and refunds you. Some insurers waive the excess if you can provide the other driver's details. Confirm how your insurer handles not-at-fault claims.

What is a voluntary excess?

A voluntary excess is an extra amount you choose to pay on top of the basic excess. In return, your insurer lowers your premium. Only take on a voluntary excess you could comfortably afford to pay at claim time.

Can I get car insurance with no excess?

Some insurers offer no-excess or excess-waiver options, but they come at a higher premium. For most drivers a moderate excess with a lower premium works out better - just keep enough set aside to cover it.

Why is there an extra excess for young drivers?

Younger and newly-licensed drivers statistically claim more often, so insurers apply an additional excess (and sometimes a higher premium) when a high-risk driver is involved in a claim. Listing all regular drivers correctly avoids nasty surprises.

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