Choosing the right excess for your car insurance is one of the most overlooked decisions drivers make. Many people choose an excess amount based on what lowers their monthly premium, without fully understanding how that choice affects them when it’s time to claim.
The excess you choose doesn’t just influence what you pay for car insurance each month. It determines how much financial pressure you’ll feel at the worst possible moment, right after an accident, theft, or major repair.
This article explains how to choose the right excess to protect both your budget and your peace of mind, or get a quote and see peace of mind in action!
How Do You Choose The Right Excess For Your Car Insurance?
The right excess is one you can comfortably afford to pay immediately after a claim, without causing financial stress, while still keeping your monthly premium reasonable.
What Is An Excess In Car Insurance?
An excess is the amount you agree to pay out of pocket when you make a claim.
If your excess is R5,000 and the repair costs R30,000, the insurer pays the remaining R25,000 after you settle your excess. This makes the excess a shared-risk mechanism. You carry part of the cost, and the insurer carries the rest.
The excess amount applies each time you file a claim.
Why The Cheapest Excess Is Not Always The Best Choice
A lower excess usually means a higher monthly premium. On the surface, this feels safer because you pay less if something goes wrong.
But you may end up paying significantly more in premiums over time for protection you may not really need. If you’re a safe driver and seldom claim, a very low excess can quietly become an expensive safety blanket (because ‘cover’, get it?).
The goal should be to balance short-term affordability with long-term value, rather than minimising pain during a claim at all costs.
Why A High Excess Can Become A Problem
A high excess, on the other hand, reduces your monthly insurance premium, but it increases the financial burden when you need to claim.
If you choose an excess that you can’t realistically afford at short notice, you may delay the car’s repairs, avoid claiming altogether, or experience unnecessary stress at a difficult time, like after an accident. In extreme cases, drivers skip repairs because the excess feels too high to justify the claim. That can mean driving around in a car that’s an eyesore or one that’s unroadworthy.
An excess only works if you can actually pay it when it matters.
How Your Financial Situation Should Guide Your Excess Choice
The right excess depends less on your car and more on your cash flow.
If you have stable savings and financial flexibility, you can choose a higher excess without too much risk. But, if money is tight or unpredictable, a slightly lower excess can provide important protection against financial pressure.
The question to ask yourself is “What excess can I pay without disruption?”
How Often You Expect To Claim Matters
Your claim behaviour also plays a role in choosing the right excess.
If you rarely claim and prefer to handle minor issues yourself, a higher excess can make sense. If you are more likely to claim due to driving conditions, location, or usage, a lesser excess may be more practical.
Choosing an excess that matches your real-world behaviour reduces frustration later.
A Practical Way To Choose The Right Excess
A simple way to evaluate your excess choice is to ask yourself three questions.
- Could I pay this excess tomorrow without borrowing money?
- Would paying this excess cause me to delay repairs or stress my budget?
- Am I choosing this excess to save money in the long term or just to lower my premium today?
If the thought of paying your excess feels uncomfortable, it is probably too high.
When Adjusting Your Excess Makes Sense
Excess is not a set-and-forget decision. That’s to say, it’s worth reviewing your excess when your circumstances change.
A new job, a different car, relocation, or improved savings can all affect which excess level makes sense for you.
Revisiting it periodically helps ensure your cover still works when you need it.
So, What Is The “Right” Excess?
The right excess is one that protects you from financial strain, and not just one that looks good on a quote.
It should be high enough to keep premiums reasonable, but low enough that a claim doesn’t become a second problem to solve.
What is an excess on car insurance in South Africa?
An excess is the amount you pay out of pocket when you claim on your car insurance. If your excess is R5,000 and the repair is R30,000, you pay R5,000 and your insurer pays the remaining R25,000 (subject to your policy terms).
How do I choose the right excess for my car insurance?
Choose an excess you can pay immediately after an accident, theft, or damage—without causing financial stress. The right excess balances a manageable claim-time cost with a monthly premium that still fits your budget.
Is a higher excess better for cheaper car insurance?
A higher excess often reduces your monthly premium, but it increases the amount you must pay if you claim. It’s only a “better” option if you could realistically afford that excess at short notice and still repair your car promptly.
Is a low excess always the best option?
No—low excess usually means higher monthly premiums, which can cost you more over time if you rarely claim. A low excess can be worth it if your budget is tight at claim time or you expect to claim more often, but it’s not automatically the best-value choice. It is a trade-off that needs to be made to best suit your financial position.
When should I change or review my car insurance excess?
Review your excess at least once a year or whenever your circumstances change. If your income, savings, driving habits, car value, or location changes, your “right” excess may change too—and adjusting it can improve both affordability and peace of mind.
Final Takeaway
If you’re unsure whether your current excess still makes sense, a quick review can help. With Pineapple’s car insurance, you can adjust your car cover based on your budget, your risk, and what you can realistically afford when it matters.
Taking a moment to review your excess can help ensure your car insurance supports you when you need it most. Get a quote!
Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply.
Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.
