When you take out a car insurance policy, you’ll notice it specifies a payment called an excess. This may be a set amount, or you may be able to choose from several options. In this article, we break down the details of car insurance excess so you can make a more informed decision.
What does excess mean?
An excess is an amount that you must pay towards each claim you make.
An example: Imagine your car is damaged in a covered accident and needs $3,000 of repairs. If your policy has a $500 excess, then you’ll need to pay the $500 excess and your car insurance will cover the remaining $2,500 for the cost of repairs.
Insurance excess vs insurance premium
Your insurance premium is the monthly or yearly amount you pay for your cover. Your insurance excess is your contribution towards any claim you make that is covered by your policy. While these are separate payments, the amount of excess you choose to pay can affect your premium.
With our Comprehensive Car Insurance, we offer you the choice to increase your excess to lower your premium. Or you can choose to lower your excess and pay a bit more on your premium.
Get an Allianz Comprehensive Car Insurance quote today to understand your options.
What car insurance excesses are there?
- Basic excess. A basic excess is the standard amount you must pay out of pocket when making a claim on your car insurance policy.
- Under 25 Driver excess. An additional excess may apply if the driver is under 25 or inexperienced.
There may also be other types of excess. You should review your policy documents and PDS for details on the types of excess relevant to you.
How much does an excess cost?
Comprehensive Car Insurance excess
The cost of your excess is listed in your car insurance policy. When you take out Allianz Comprehensive Car Insurance, you have the choice to adjust your excess level within our given range. If you raise your excess, this will decrease the cost of your premium.
On the other hand, reducing your excess will raise the cost of your premium. So, when making this decision, consider what is right for you and your circumstances.
You may need to pay a set excess for specific claims, such as an age excess. The specific excesses are outlined in the insurance policy.
Third Party Property Damage excess
If you take out Allianz Third Party Property Damage Insurance, you don’t have the option to adjust your excess.
The excess amount can vary based on factors such as your age, driving history and the specific terms of the policy.
When do I need to pay an excess?
Situations you’re commonly required to pay an excess with an Allianz Comprehensive Car Insurance policy include:
- Because you were the at fault driver.
- Damage caused to the vehicle due to a weather event.
- If the at fault driver’s details are incorrect, unavailable or you’re unable to get them at the time of the incident.
Do I have to pay an excess if the accident was not my fault?
No. You won't have to pay an excess if we determine you're not at fault for the accident and you can provide the responsible party’s details.
You’ll need to get details that would allow us to reasonably identify the person at fault, so that we can recover our costs. Make sure you get all the necessary information before leaving the site of an accident. The information you need to provide to us is detailed in the Product Disclosure Statement (PDS) for your car insurance policy.
Do I have to pay an excess if my car is stolen?
Yes, you will need to pay the applicable excess if your car has been stolen.
Do I have to pay an excess for hail damage or other weather damage?
Yes, an excess will apply if you make a claim for weather damage including hail, storm, cyclone, bushfire or flood damage.
Do I have to pay an excess if my car's windscreen is damaged?
Yes, you’ll need to pay an excess for windscreen damage. To avoid paying out of pocket for a windscreen repair or replacement, you can purchase optional
excess-free windscreen replacement cover for an additional premium.
Do I have to pay an excess if my car's written off?
Yes, you’ll need to pay the applicable excess if your car is written off, unless you weren’t at fault.
Do I have to pay an excess for a rental car following a no fault accident?
With Allianz Comprehensive Car Insurance, if you’re not at fault in an accident and you need a rental car, you generally don’t have to pay an excess. You'll need to give us the details of the at-fault driver.
Do I have to pay an excess for a rental car following an at fault accident?
Yes, with Allianz Comprehensive Car Insurance, you'll need to pay the applicable excess if you’re at fault in an accident and require a rental car1. This will only apply if you've selected the optional rental car benefit following any covered incident.
Do I have to pay an excess if I hit a kangaroo?
Yes, you'll typically need to pay an excess for damage that has been caused by hitting an animal such as a kangaroo.
Do I have to pay an excess for thermal runaway?
Yes, you’ll typically need to pay an excess if you make a claim for
thermal runaway.
Do I have to pay an excess for wall chargers and mounts?
Yes, you’ll typically need to pay an excess if you make a claim with your EV for damage to charging cables, wall chargers and wall mounts you own.