- Home
- Car Insurance
- Articles
- Car Insurance Excess
Car Insurance Excess
It is probably fair to say that when it comes to car insurance, we all have a long list of things on which we would rather spend our money. Because of this, minimising the amount of money we do have to spend when purchasing a car insurance policy is important for many Australians.
One of the quickest and seemingly easiest ways to decrease your premium in the short term is to increase the excess you will have to pay if you make a claim where you were the driver at fault. Most insurance companies offer this opportunity to save on your yearly premium, however while this approach can definitely save you money in the short term, you should be aware of the consequences of increasing your excess dramatically should you be required to pay it. A crash is unpleasant enough without a huge excess bill adding to the drama.
No one intends to have a crash, but if you think you might be one of those people who will need to pay their excess and are worried about the added cost, or even if you just don’t want the hassle of having to pay out even more should you prang your pride and joy, you may prefer a different option on your premium.
Some insurers allow you to remove your excess altogether for a fee reflected on the premium. This will, of course, cost you more in the short term and if you never make a claim, where you would have otherwise had to pay your excess you will be paying more for your insurance. However, with 1.4 million car insurance claims being made by Australians in the 2005/2006 financial year, the security of no excess might be just the peace of mind you need when you get behind the wheel.
Disclaimer
This article is over two years old, last updated on November 22, 2007. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent car insurance articles.
Compare car insurance
Either
if written off before 2 years
Standard
- New car replacement
- Flexible excess
- Roadside assistance
Either
if written off before 2 years
Optional
Comprehensive
- New car replacement
- Flexible excess
- Roadside assistance
Either
if written off before 2 years
Optional
Comprehensive
- New car replacement
- Flexible excess
- Roadside assistance
Agreed
if written off before 2 years
Not available
Comprehensive
- New car replacement
- Flexible excess
Product database updated 27 Apr, 2024
Fact Checked
Share this page
