Cellphone Insurance Guide

Cellphone insurance excess explained

Written by Lerato Molefe Personal Insurance Writer Reviewed by Nomsa Dlamini RE5 qualified · 12 years in short-term insurance Updated 28 July 2026 Our editorial standards →

How does the excess work on cellphone insurance?

The excess - also called the first amount payable - is the portion of a claim you pay yourself before the insurer covers the rest. On device cover it is usually a flat Rand amount or a percentage of the claim, and it normally applies each time you claim. There is a direct trade-off with your premium: a higher excess generally means a lower monthly premium, and a lower excess a higher one. Some policies offer a no-excess option at a higher premium, which is worth it only if you expect to claim.

Key takeaways

The excess is what you pay towards a claim before the insurer pays the rest.
It is usually a flat Rand amount or a percentage of the claim.
A higher excess lowers your premium; a lower excess raises it.
No-excess options cost more each month and suit those who expect to claim.
Check whether the excess applies per claim and whether screens carry a separate figure.

What excess (first amount payable) means

Excess is the share of any claim you carry yourself. If your phone is damaged and the repair or replacement is covered, the insurer settles the claim minus your excess - so you pay the excess and they pay the rest. It exists for two reasons: it keeps small, frequent claims in check, and it keeps premiums lower than they would be if the insurer paid every Rand from the first cent. Understanding your excess is essential, because it is the amount you will actually feel at claim time.

Flat versus percentage excess

Device excess usually comes in one of two forms. A flat excess is a fixed Rand figure - you pay the same amount whatever the claim. A percentage excess is a proportion of the claim, sometimes with a minimum Rand amount, so it scales with the value of the phone. On an expensive handset a percentage excess can be sizeable, so always ask the insurer to translate it into a Rand figure for your specific phone. These structures are indicative and vary between insurers, so compare like with like when you shop.

How excess affects your premium

Excess and premium move in opposite directions. Choose a higher excess and you take on more of each claim yourself, so the insurer charges a lower monthly premium. Choose a lower excess and the insurer carries more, so the premium rises. The right balance depends on your budget and appetite for risk: a higher excess suits someone who wants to minimise the monthly cost and could absorb a bigger claim, while a lower excess suits someone who would rather pay a little more each month for a smaller bill if they claim. See how this feeds into overall cost.

No-excess options and when they make sense

Some insurers offer a no-excess or reduced-excess option, where you pay nothing (or very little) towards a claim in exchange for a higher premium. On the surface this sounds appealing, but it only pays off if you actually claim. If you rarely claim, you may spend more on the higher premium over time than you would have paid in excess. No-excess cover makes most sense for people who consider a claim likely - for example, those prone to cracked screens - or who simply want certainty about their out-of-pocket cost.

Excess traps to watch

A few details deserve a close read. Confirm whether the excess applies per claim, because multiple incidents in a year mean multiple excesses. Check whether screen repairs carry a separate, sometimes higher, excess. Watch for a minimum excess attached to a percentage structure, which can make a small claim not worth lodging. And make sure you could actually afford the excess when you need to - a very high excess that lowers the premium is no help if you cannot fund it at claim time.

Frequently asked questions

What is the excess on cellphone insurance?

The excess, or first amount payable, is the portion of a claim you pay yourself before the insurer covers the rest. It is usually a flat Rand amount or a percentage of the claim, and it normally applies each time you claim.

Is a percentage or flat excess better?

It depends on your phone's value. A flat excess is predictable and can be cheaper on an expensive phone, while a percentage excess scales with the claim. Ask the insurer to express any percentage as a Rand figure for your handset so you can compare.

Can you get cellphone insurance with no excess?

Some insurers offer a no-excess or reduced-excess option, but it comes with a higher premium. It is worth it mainly if you expect to claim; if you rarely do, the higher premium can outweigh the excess you would have paid.

Do I pay an excess for a cracked screen?

Usually yes, if accidental damage is covered. Some policies apply a separate, sometimes higher, excess to screen repairs. Check the screen excess specifically, as it can differ from the standard device excess.

Does a higher excess lower my premium?

Yes. Taking a higher voluntary excess means you carry more of each claim, so the insurer charges a lower monthly premium. Just make sure you could afford that excess at claim time before choosing it to cut the premium.

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