When it comes to choosing car insurance, one of the most important things that you have to consider is your car insurance excess fee cost. Prioritising your excess will keep you from experiencing a nasty surprise if you’re ever in a car accident.
Whenever money is tight, it can be incredibly tempting to start cutting back on short-term expenses… especially insurance. But before you go cancelling your car insurance policy, make sure that you take another look at your car insurance excess fee.
If you feel your palms sweating because of this seemingly unsettling term, don’t panic. We’ve got you and we’re more than happy to give you a detailed explanation of what your car insurance excess fee is. That way you’ll be able to not only understand the term but also appreciate just how much work your excess does for you.
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What is a car insurance excess fee?
Let’s demystify the purpose of excess, shall we?
Your excess is the amount of money that both you and your insurer (that would be us!) agree upon when it comes to deciding how much money you will contribute towards your future claims.
Okay, but we’re going to guess that you are probably wondering why ‘excess amounts’ even exist.
For starters, it’s a great way to prevent you from claiming too often. When you do this you ultimately ruin your risk profile, which means higher premiums in the future.
Your excess is also a way for us insurers to protect ourselves from fraudulent claims. If you are expected to pay upfront, then you’re less likely to put down an untrue claim.
Excess in action
Just to make sure that we are all on the same page here, let’s look at a scenario where your excess would be involved.
Let’s say that your insurance excess fee amount is R3000.
If you have an accident that costs under R3000, you cannot claim for it because the amount is less than your excess and you would have to pay that amount regardless. If your claim totalled R6000, you would pay R3000 and your insurance provider would pay the rest.
Do you have to pay for the excess of an accident that wasn’t your fault?
Yes.
Unfortunately, you will always be responsible for your excess amount whenever you claim. Even if someone else is in the wrong, your excess is your responsibility.
But don’t panic too much because you are able to control your own excess with Oneplan.
Excess with Oneplan
As you know, at Oneplan we really do have your best interests at heart. But this isn’t just another tagline that you’re reading from an insurance company. It’s the only way we know how to do business and we’re always ready to prove our loyalty to you.
We have gone and completely restructured how we deal with insurance excess to make sure that it’s a lot easier and more affordable for everyone! Best of all, our philosophy of complete transparency means that you are always in the know.
Especially when it comes to your car insurance excess fee amount.
How does it work?
Taking out car insurance with us means that you are choosing an amount that best suits your preferences and pockets. Essentially, we are putting the power back in your hands. You get to customize your specific excess amount at the quick click of a button.
Now, when we are creating your personalised risk profile, we calculate your premium based on the following factors:
- Sex
- Age
- Marital Status
- Vehicle year and model
- Past insurance claims
- Your budget
Once our team has gathered all of this information you will be granted access to our exclusive sliding scale that lets you tailor your own coverage. The amount is fully dependent on you! You have the option of then choosing an excess amount between 5 and 70% of any potential future claims.
Do you go high or low?
When it comes to choosing your excess amount many of our clients ask which option is better: a high or low excess amount.
Now, this is a completely personal choice and is fully dependent on you. But to help you decide whether to go with a minimum or maximum excess amount, here’s how the amounts work.
If you choose a higher excess payment, you will be expected to pay a lower premium amount. This saves you money in the here and now. If you choose a lower excess payment, then you will experience the opposite. You will then have to pay a higher premium amount.
Both options are completely viable, but here are a few questions that we like to ask our potential clients when they are deciding which option to choose.
- Are you on the road a lot? Perhaps then consider a lower excess because statistically, you may end up paying them more than the average driver who spends less time on the roads.
- Do you have a more expensive car? Then you’re more likely to have a more expensive monthly insurance premium amount. Opting for a high excess could make a difference to your monthly premiums.
Are you noticing how we really do want our insurance policies and excess amounts to fit YOUR life in the best way possible?
Related: Flexible Car Insurance – as easy as 1, 2, Drive with Oneplan
Is the minimum excess enough?
The short answer: absolutely!
While we would definitely suggest going for a higher premium amount, we understand that some budgets just don’t allow for that. The difference between us and many other insurers on the market is that our coverage is still comprehensive – no matter how much you’re paying every month.
All of our policies are geared towards looking out for the everyday South African.
If you want to financially protect yourself in the event something goes off course, you should be afforded that option … and now you are!
Take the wheel when it comes to your short-term insurance costs and choose your own car insurance excess fee, and witness how car insurance is not a luxury but an affordable necessity.
Your Insurance Family,
Oneplan
