Car insurance excess explained: what you pay before the insurer does

An excess is the part of a claim that you pay yourself before the insurer pays the rest. Your policy schedule states it. Under the Policyholder Protection Rules (Short-term Insurance), an insurer must tell you about any excess before the policy starts, and again in writing afterwards, so you are not surprised on the day you claim.

What is a car insurance excess?

When your car is damaged and the claim is accepted, the insurer does not always pay the full repair bill. The policy sets an amount that stays with you. That amount is the excess. If a repair costs more than the excess, the insurer pays the difference. If the repair costs less than the excess, the insurer usually pays nothing, because the whole bill falls on you.

The Policyholder Protection Rules (Short-term Insurance), 2017, define "excesses" as "amounts payable or borne by policyholders in the event of claims or losses under a policy". The wording is broad on purpose. It covers any amount that you carry yourself when you claim, however the policy names it.

An excess is not the premium. The premium is what you pay every month or year to keep the policy in force. The excess is what you pay once, at claim time, when something goes wrong. Both are written into the contract.

Why do insurers use an excess?

Rule 6.1 of the Rules deals with how premiums and excesses are set. It says the extent to which the risk of loss is borne by policyholders through the use of excesses "must reasonably balance" the interests of the insurer and the reasonable benefit expectations of the policyholder. In plain terms, the insurer is allowed to leave part of each loss with you, but not in a way that tips the policy unfairly against you.

That means an excess is a normal feature of a motor policy. It is not a penalty. Whether a given excess is fair is a question the Rules put to the insurer, and, if you disagree, to the complaints route described below.

What do the Rules say the insurer must tell you?

The Rules speak about excesses at three moments.

Before you take the policy. Rule 11.4.2(d)(iii) says that, when an insurer gives a quotation or a similar communication that you can reasonably be expected to rely on, it must state "any excesses that may become payable by the policyholder, the circumstances under which it will be payable and the consequences of not paying". Where a policy is sold through direct marketing, the same information must be given before the policy is entered into (Rule 11.4.1(b)).

After the policy starts. Rule 11.5.1 requires the insurer, at the earliest reasonable opportunity and no later than 30 days after the policy starts, to give you the key information in writing. Excesses are on that list (Rule 11.5.1(c)(iii)).

When you claim. Rule 17.8.3(d) says the insurer must disclose to the claimant "any excesses payable by the claimant", along with where and how to submit the claim, the information required and any time limits. So you should not first learn what you owe from the settlement letter.

All of this must be in plain language (Rule 17.8.2).

What must an excess look like to be allowed?

Rule 17.10.1 sets three tests for any excess payable by a policyholder. The excess:

• must be clearly disclosed to the policyholder;
• must be fair and reasonable; and
• may not constitute an unreasonable barrier to a claimant, taking into account the reasonably assumed circumstances and expectations of the average targeted policyholder and claimant.

If you believe an excess was not disclosed, or is so high or so conditional that it stops people from claiming at all, that is a conduct complaint. The Rules do not say what number is fair. They say how an excess must be disclosed and judged.

Where do I find my excess?

1. Open the policy schedule. It is usually the page with the vehicle details, the cover type and the premium.
2. Look for the word "excess". It may sit in a table with several lines, because a policy can set different amounts for different kinds of claim. The schedule or the policy wording says which line applies to which situation.
3. Look for any extra conditions. A policy may attach a different excess to a particular driver, to a particular type of loss, or to a claim made in certain circumstances. The schedule will show this if it applies to you.
4. Check the quotation you were given before the policy started. Rule 11.4.2(d)(iii) says it should have stated the excess. If the policy schedule and the quotation disagree, ask the insurer to explain in writing.
5. Keep the schedule where you can find it. Rule 17.8.3 means the insurer will repeat the excess when you claim, but it is easier to plan if you know it already.

Does the excess apply when someone else caused the accident?

That depends on the policy and on how the claim is handled, and the Rules do not give one answer. The insurer who issues your policy states in the wording when an excess is payable. If you are not sure, ask the licensed provider who calls you to show you the clause. Olvian does not decide this; Olvian does not provide advice or choose a policy for you.

Third-party claims are a separate matter from your own cover. A claim for injury to a person after a road accident may fall under the Road Accident Fund, which is covered in our guide on motorbike insurance and the Road Accident Fund. The Fund's duty under section 17 of the Road Accident Fund Act is framed around bodily injury and death. It is not the same thing as the excess on your own damage claim.

Can a higher or lower excess change my policy?

Policies are built from terms the insurer chooses, and some insurers offer more than one excess level on the same cover. The Rules do not set the amounts or tell you which level to choose. They do require that whatever is offered is disclosed clearly. If an excess option is available, the licensed provider who contacts you can explain it. Which level suits your circumstances is a decision for you, and the provider is the one allowed to help you with it.

What if I disagree with how the excess was applied?

Work through the steps in this order.

1. Ask the insurer in writing to explain how it arrived at the figure and which clause it relied on.
2. Use the insurer's internal complaints process. Rule 17.5 requires an insurer to maintain an internal process for claims decisions to be escalated and reviewed.
3. If the insurer repudiates or disputes part of the claim, it must tell you within 10 days of its decision, in plain language, with its reasons. You then have at least 90 days to make representations (Rules 17.6.2 and 17.6.3). The notice must also tell you that you can complain to a relevant ombud.
4. If the matter is still unresolved, you can approach the National Financial Ombud Scheme. Its website says it resolves disputes at no charge to the complainant and that it can only look at a complaint after you have first lodged it with your insurer.
5. You can also take a conduct complaint to the Financial Sector Conduct Authority, which regulates the market conduct of financial institutions.

A separate guide, what car insurers ask and what you must disclose, explains how the questions you answer at the start can affect a claim later.

What does Olvian do?

Olvian is a lead-referral service. You ask once, and your request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not an insurer, broker, financial services provider or adviser. It does not set an excess, quote one or tell you what level of cover to buy. The licensed provider who calls you answers those questions about its own policy.

Sources

Checked on 31 October 2026. Olvian is not a financial services provider and this guide is information, not advice.

• Policyholder Protection Rules (Short-term Insurance), 2017, Government Notice 1433, Government Gazette 41329 of 15 December 2017: definition of "excesses"; Rules 6.1, 11.4.2, 11.5.1, 17.5, 17.6, 17.8 and 17.10.
• Road Accident Fund Act 56 of 1996, section 17
• National Financial Ombud Scheme
• Financial Sector Conduct Authority