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Your excess is the amount of money that will come out of your pocket when you make a claim. Think of it as the contribution you have to make; your insurer will then pay the remaining balance.

What’s an example of an excess?

Let’s say you chose R5,000 as your excess when you bought car insurance. After a minor accident, you claim from your insurer to repair the damage. The repair on your car costs R20,000. You will have to pay R5,000 of the R20,000 and your insurer will cover the rest, i.e. R15,000.

Is it better to have a high or low excess?

The higher your excess, the lower your insurance premium will be, and vice versa. So, choosing an excess is about finding the sweet spot between what you pay on a claim and what you pay each month for your insurance.

How do I pick my excess?

One way to calculate an appropriate excess is to determine the maximum amount you can comfortably afford to pay out of your pocket if you had to make a claim tomorrow. Picking this level means you’ll avoid getting into trouble when it comes to claiming while minimising the amount you have to pay for insurance each month.

What different types of excesses are there?

Different insurers offer different types of excesses:

  • Flat excess – A fixed amount you agreed to when you bought insurance. This amount remains the same regardless of the size of your claim.
  • Percentage excess – A certain percentage of your claim is paid by you. This amount varies based on the size of your claim.
  • Additional excesses – Amounts required on top of your basic excess when you claim. Factors like the time of the accident or the driver's age may influence these.

Not all insurers have additional excesses, so it's best to check your policy wording. With Naked, we only offer one flat excess that you choose.

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