Car insurance is a must-have in South Africa, especially with the high number of accidents and vehicle thefts. But there’s one term that often confuses drivers: excess.
Understanding your car insurance excess is essential, it affects how much you’ll pay when claiming, and not knowing the details could cost you more than you expect.
At G&S Insurance Consultants, we’ve helped South Africans understand their policies since 1988. Here’s what you need to know in 2025.
What Is Car Insurance Excess?
Excess is the amount you agree to pay out of pocket when you claim from your insurer. Your insurance covers the rest. It’s meant to reduce small or fraudulent claims and helps keep your monthly premiums affordable.
Types of Car Insurance Excess in South Africa
In 2025, most insurers in South Africa apply multiple types of excess on a single claim. Here are the most common:
1. Basic Excess
This is the standard amount you’ll always pay when claiming, no matter what caused the damage.
2. Voluntary Excess
You choose this amount to lower your monthly premium. But be careful, if your voluntary excess is high, your out-of-pocket cost will be too.
3. Compulsory or Additional Excess
Insurers may apply extra excess for:
- Young or new drivers (under 25 or with <2 years’ license)
- Drivers not listed on the policy
- Accidents happening at night or under risky conditions
- High-risk areas or vehicles
Example: How Excess Works
Let’s say you’re in an accident and the damage costs R50,000 to repair.
- Basic Excess: R5,000
- Additional Excess (because your cousin was driving): R4,000
- Total Excess You Pay: R9,000
- Insurer Pays: R41,000
How to Lower Your Risk
At G&S Insurance Consultants, we help you make sense of the fine print. Here’s what you can do:
✅ List all regular drivers on your policy.
✅ Understand each excess type and check your schedule.
✅ Avoid choosing a high voluntary excess if you can’t afford it.
✅ Update your policy details regularly (e.g. address, car usage).
Why Excess Matters More in 2025
With the rising cost of car repairs and parts, insurers are tightening claim terms. That means more detailed excess structures, some policies even include “per incident” and “per component” excesses. It’s more important than ever to get advice before you sign.
More about Excess Waiver:
An excess waiver on a short-term insurance policy refers to an optional benefit or add-on that removes or reduces the excess (also called a deductible) that you, as the policyholder, would normally have to pay when you make a claim.
What is excess?
· Excess is the portion of the claim you are responsible for paying out of your own pocket.
· For example, if your car insurance policy has an excess of R5,000 and you make a claim for R20,000, the insurer will pay R15,000 and you will pay the R5,000.
What does an excess waiver do?
· If you take the excess waiver option, the insurer will waive (cancel) the requirement for you to pay that R5,000 in the event of a claim.
· In some cases, it may only waive certain types of excesses, such as basic excess but not additional ones (e.g., young driver excess, special conditions, etc.).
Key Points:
· It usually increases your monthly premium slightly.
· It can offer financial relief in the event of a claim, especially large or frequent claims.
· Often available for vehicle insurance but may also apply to home contents or all-risk items. (Dependent on Insurer)
Let G&S Insurance Consultants Help You
As an Authorised Financial Services Provider (FSP 14200) with nearly 40 years of experience, G&S doesn’t just sell you a policy, we help you understand it.
We work with top insurers in South Africa to find a plan that:
- Fits your budget
- Has manageable excess terms
- Offers comprehensive protection with no surprises
Need a Quote or a Policy Review?
Let’s make sure your car insurance is working for you, not against you. Contact G&S Insurance Consultants today for unbiased advice and personalised quotes.
📞 One call is all you need
Call us at 011 907 2412
WhatsApp 060 541 4565
Email us at marketing@gsinsurance.co.za
Or visit us at 🌐 www.gsinsure.co.za
Disclaimer: This blog is for informational purposes and does not constitute financial advice. Consult a licensed financial advisor for tailored guidance. G&S Insurance Consultants is an Authorised Financial Services Provider, FSP 14200.