Insurance Excess Waiver


Depending on what you are insured for, you are liable for a portion of the costs in the event of claim. This is regarded as the “excess” portion. 

If you have a low claims history, you may be liable for a lower excess than if you have a high claims history. It’s important to remember that the excess amount is agreed upon upfront when you take out your policy. This can either be a fixed rand amount or a percentage of the claim. Most insurers are now opting for a fixed amount as this gives clients a better idea of how much they will be liable for.

What is insurance excess waiver?

This is where a client pays an additional amount on top of his/her premium every month so that if they ever need to claim, they won’t have to pay an excess.

It may mean that you pay a little more in the first place for the cover. It also means that should something go wrong when you make your claim you will not be charged the excess.

Excess is not automatically waived by the insurer if you are in a car accident that is not your fault.

Important factors to consider:

Some insurers apply a claim threshold amount, below which you cannot claim, but above which no excess is payable.

If you are a driver over the age of 50 or 55 you are considered low risk, which may mean that you have lower excess or you could even have your basic excess waived.

As a policy holder, it’s important to know the Terms and Conditions of your policy. Make sure that you read the fine print and that you understand the details of your insurance agreement before you agree and sign any documents.


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