Calculators & guides
How Car Insurance Excess Works and How to Calculate Yours
By Sipho Dlamini · 6 min read · Updated 24 June 2026
- What it is
- The first amount you pay on each claim
- Why it exists
- Lowers premiums and discourages tiny claims
- Can stack
- Basic + additional excesses on one claim
Excess is the first portion of any car insurance claim that you pay yourself before the insurer pays the rest - so on a R20 000 repair with a R4 000 excess, you pay R4 000 and the insurer pays R16 000. It is how insurers keep premiums lower and discourage tiny claims.
Your total excess on a claim can be several amounts added together: a basic excess plus extra excesses for things like a young driver or theft. Knowing how they stack up tells you whether a small claim is even worth lodging.
This guide explains each type and shows a simple way to work out what you would pay.
What excess means in plain terms
When you claim, the insurer subtracts your excess from the payout, or asks you to pay it to the repairer. You only benefit from the policy on the amount above your excess.
Example: damage of R12 000, excess of R3 500. The insurer covers R8 500 and you cover R3 500. If the damage were only R3 000, it would be below your excess, so there is nothing to claim - you would just pay it yourself.
The main types of excess
| Type | When it applies |
|---|---|
| Basic / standard excess | On almost every claim |
| Voluntary excess | You chose a higher excess for a lower premium |
| Young / inexperienced driver | Driver under a set age or recently licensed |
| Theft / hijack excess | For theft or hijacking claims |
| Unidentified third party | When the other party cannot be traced (hit-and-run) |
| Windscreen / glass excess | A smaller, separate excess for glass |
More than one of these can apply to a single claim, so always read your schedule.
How to calculate your excess on a claim
Add up every excess that applies to that specific claim:
Total excess = basic excess
+ voluntary excess (if you took one)
+ additional excess (young driver, [theft](/claims/car-theft-and-hijacking-claim/), etc.)
Worked example - a 22-year-old has a write-off after theft:
Basic excess R 4 000
Young driver excess R 2 500
Theft excess R 3 000
-----------------------------
Total you pay R 9 500
The insurer's payout is the claim value minus R9 500. Knowing this before you claim avoids a nasty surprise.
Percentage vs fixed excess
Some excesses are a flat rand amount; others are a percentage of the claim with a rand minimum, for example '10% of the claim, minimum R3 000'. On a R30 000 claim, a 10% excess is R3 000; on a R60 000 claim it is R6 000. Always check whether yours is fixed or percentage-based, because the percentage version grows with the claim.
Voluntary excess: the trade-off
Choosing a higher voluntary excess lowers your monthly premium, because you carry more of the small-claim risk. It pays off if you rarely claim, but it means a bigger out-of-pocket hit when you do. Set it at a level you could comfortably afford in an emergency, not just the lowest premium.
When it is not worth claiming
If the repair is close to or below your total excess, claiming makes little sense - you would pay most of it anyway and may lose your no-claim discount, pushing future premiums up. Get a quote first, compare it to your excess, and only claim when the benefit clearly outweighs the cost.
Frequently asked questions
What does excess mean in car insurance?
Excess is the first amount you pay towards a claim before the insurer pays the rest. On a R15 000 repair with a R3 000 excess, you pay R3 000 and the insurer pays R12 000. It keeps premiums lower and stops people claiming for trivial damage.
Do I pay excess if the accident was not my fault?
Usually yes, you pay the excess up front when you claim, even if the other driver caused it. But if the other party is identified and at fault, your insurer can recover your excess from them, and you may get it back. If they cannot be traced, you typically carry it.
How is excess calculated in South Africa?
Add every excess that applies to that claim: the basic excess plus any additional excesses such as young-driver, theft or voluntary excess. A percentage excess is worked out on the claim value with a rand minimum. The total is what you pay before the insurer pays the rest.
Can I have a policy with no excess?
Some insurers offer no-excess or excess-waiver options, but they cost more in premium. Effectively you are pre-paying the excess through a higher monthly amount. Whether it is worth it depends on how often you expect to claim.
What is an excess waiver?
An excess waiver is an add-on that removes or reduces the excess you would otherwise pay on a claim, for an extra premium. Car hire excess insurance is a common example, covering the excess on a rental car if it is damaged.
Does claiming affect my premium even after I pay the excess?
It can. A claim may reduce or reset your no-claim discount, which raises future premiums. That is why for small repairs near your excess amount it is often cheaper to pay out of pocket and protect your discount.
Why is my excess higher than I expected?
Several excesses probably stacked on the same claim - for example a basic excess plus a young-driver and theft excess. Read your policy schedule, which lists each excess and when it applies, so you can see the full amount before claiming.
