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Car Insurance Excess


Laine Gordon

Laine Gordon


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 consumers.

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, consumers 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 (see table below) allow consumers to remove their excess altogether for a fee reflected on their 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 consumers 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.

How do I compare car insurance policies?

RateCity is the best website to shop around on for car insurance and most other financial products. At RateCity, you can use expert comparative data from CANSTAR, Australia’s leading financial research and ratings firm. CANSTAR has analysed and evaluated products from 23 car insurance providers to award five stars to only the very best. The CANSTAR star ratings go much further than just looking at premiums. They also look at driver profiles, state of residency and other factors which may affect premium price so you can be confident you are getting the best product.

As well as comparing car insurance policies at RateCity, you can also get instant quotes from leading Australian car insurance brands.

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