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Car insurance excess explained: how it affects your premium and claims
Excess is one of those insurance words that sounds simple but trips up even experienced drivers when claim time arrives. Get it wrong and you could face a bill you cannot afford, or spend years overpaying on your premium for cover you did not need to buy. This guide unpacks exactly how car insurance excess works in South Africa, how King Price structures it, and how to choose the right level for your wallet and your lifestyle.
Key takeaways
- Excess is the rand amount you pay first when you claim, your insurer covers the rest
- Compulsory excess is set by the insurer; voluntary excess is what you add on top to reduce your premium
- Higher excess lowers your monthly premium but increases your out-of-pocket cost per claim
- King Price drivers aged 45 and older can choose a zero-excess option
- If the other driver is at fault you can often recover your excess from their insurer
- Always check whether age-related or non-standard excess applies to your profile before signing
What is car insurance excess?
- Car insurance excess
- The fixed rand amount a policyholder agrees to pay from their own pocket when submitting a claim. The insurer pays the remainder of the approved claim amount above the excess. Excess is specified in the policy schedule and can include compulsory and voluntary components.
When you submit a claim, your insurer does not pay the full amount from the first rand. Instead, you cover an agreed portion called the excess, and the insurer pays whatever is left. If your car sustains R20,000 worth of damage and your excess is R5,000, you pay R5,000 and King Price pays R15,000.
There are two main types of excess you will encounter on a South African car insurance policy.
- Compulsory excess
- An excess amount set by the insurer that applies to every claim, regardless of the policyholder’s preference. It cannot be removed from the policy.
- Voluntary excess
- An additional excess amount the policyholder chooses to accept on top of the compulsory excess, usually in exchange for a lower monthly premium.
Your total excess on any given claim is the sum of both: compulsory plus voluntary. Understanding this distinction is the foundation for every decision you make about premium versus out-of-pocket risk.
How excess affects your monthly premium
Excess and premium move in opposite directions. When you agree to carry more of the financial risk yourself (higher excess), the insurer’s maximum exposure on each claim drops, so they charge you less each month. When you want the insurer to carry more of the risk (lower excess), they price that protection into your premium.
| Excess level | Effect on monthly premium | Best suited to |
|---|---|---|
| Low excess (e.g. R2,500) | Higher premium | Drivers who claim frequently or cannot absorb a large once-off cost |
| Mid excess (e.g. R5,000) | Moderate premium | Most drivers seeking a balanced approach |
| High excess (e.g. R10,000+) | Lower premium | Low-risk drivers with savings to cover a large once-off cost |
| Zero excess (King Price 45+ option) | Slightly higher premium | Drivers aged 45 and older who want no surprise bills at claim time |
The right level sits at the intersection of what you can comfortably pay in a single month if you claim, and what you can comfortably pay every month whether you claim or not. Neither extreme is automatically better.
Choosing an excess that looks great on paper but wipes out your savings account the moment you claim defeats the purpose of having insurance. The best excess is the one you can actually pay on a bad day.
Types of excess and when each applies
Not all excess is the same. Depending on your profile and the nature of a claim, different types of excess can stack on top of each other.
Standard excess
The baseline amount set by your insurer. It applies to most claims and is listed prominently in your policy schedule. At King Price, this is the starting point before any voluntary adjustment.
Voluntary excess
You choose to add this on top of the standard excess to bring your premium down. It is a lever you control. Increase it to pay less monthly; decrease it to pay less at claim time.
Age-related excess
Some insurers apply a higher excess to younger or less experienced drivers because statistical risk is higher in that group. This is separate from and in addition to the standard excess. Conversely, King Price rewards drivers aged 45 and older with the option to carry zero excess entirely.
Non-standard excess
If your driving record includes convictions or a history of frequent claims, an insurer may load an additional excess onto your policy to reflect the elevated risk. This is disclosed in your policy schedule.
Glass or windscreen excess
Windscreen and window claims are often handled separately with a dedicated, usually lower, excess. Some policies waive it entirely for glass claims. Check your King Price policy schedule for the specific amount that applies to you.
How excess works step by step when you claim
How excess works when you claim with King Price
A step-by-step walkthrough of how your excess is applied when you submit a car insurance claim.
- Supplies:
- Vehicle registration document
- Driver's licence
- Photos of the damage or incident scene
- Police case number (if applicable)
- Tools:
- King Price app or phone
Report the incident immediately
Call King Price on 0860 50 50 50 or open the app before moving the vehicle. Moving a vehicle without authorisation can affect your claim.
Submit your claim details
Provide photos, a description of the incident, and your policy number. King Price confirms your excess amount at this stage so you know exactly what you owe.
Assessor reviews the damage
A King Price assessor contacts you within 24 hours to inspect the vehicle and confirm the approved claim amount.
Pay your excess
You pay your excess directly to the repairer or as directed by King Price. This is deducted from the total repair or replacement cost.
King Price settles the balance
King Price pays the remainder of the approved claim amount directly to the repairer or, in the case of a write-off, to you less the excess.
One point worth repeating: excess applies per claim, not per year. If you make two separate claims in the same month, you pay the excess twice. This is a key reason why some clients choose a higher excess when they have a strong claims-free history and a lower excess when they drive in high-risk conditions daily.
What happens when the accident is not your fault?
If another driver causes the accident and they are insured, their insurer is liable for your damages. In that scenario you may be able to recover your excess from the at-fault party or their insurer, meaning you ultimately pay nothing out of pocket. The process can take time, however, so your insurer typically pays your claim first and pursues the recovery on your behalf.
If the at-fault driver is uninsured (a significant reality on South African roads), recovery becomes more complicated. This is one of the reasons comprehensive cover with a manageable excess matters more in South Africa than in many other markets.
King Price’s no-excess option for drivers aged 45 and older
King Price is one of the few South African insurers that offers a genuine zero-excess option. Drivers aged 45 and older can elect to pay no excess at all when they claim. The trade-off is a slightly higher monthly premium, but for many clients in this age group the certainty of a R0 bill at claim time is worth it.
This option stacks with King Price’s signature decreasing premiums feature, where your monthly premium drops automatically each month as your vehicle depreciates. The combination means older drivers can enjoy falling premiums and no excess simultaneously, a pairing that is genuinely rare in the South African market.
- Decreasing premiums
- A King Price feature where your car insurance premium reduces automatically every month to reflect your vehicle’s declining market value. As your car is worth less, you pay less. No other major South African insurer offers this as a standard feature.
Should you choose a higher or lower excess?
There is no universally correct answer. The right excess depends on three personal factors.
Your liquid savings
A high excess only saves you money if you never need to pay it, or if you have the cash available when you do. If a R10,000 excess would force you to take out a personal loan after an accident, the premium saving is not worth it.
Your driving environment
Drivers who commute long distances daily, park in high-crime areas, or regularly drive in severe weather conditions face a statistically higher chance of claiming. For them, a lower excess reduces the financial shock of a claim. Drivers who use their car occasionally and park in a secure garage can afford to carry more excess risk.
Your claims history
If you have gone three or more years without a claim, a higher excess is a reasonable bet. If you have claimed twice in the past 18 months, a lower excess is likely the more cost-effective choice over a 12-month horizon.
| Your situation | Recommended excess approach |
|---|---|
| Strong savings, rare claims, secure parking | Higher voluntary excess to reduce monthly premium |
| Limited savings, frequent urban driving | Lower excess for predictable claim costs |
| Aged 45 or older with King Price | Consider the no-excess option for complete certainty |
| New driver or recent convictions | Accept the compulsory excess; avoid stacking voluntary excess until risk profile improves |
| Company car or high-value vehicle | Lower excess, replacement costs are high and claims are more disruptive |
Frequently asked questions
They are the same concept. "Excess" is the term used in South Africa and the United Kingdom. "Deductible" is the equivalent American English term. Both refer to the amount the policyholder pays before the insurer covers the remainder of a claim.
Yes. You can request an excess adjustment at any policy renewal or, depending on your insurer's rules, mid-term. At King Price, contact the client services team and they will recalculate your premium based on the new excess level. Changes typically take effect from the next billing date.
Excess applies to claims on your own policy. If you are claiming against another driver's third-party liability cover, their insurer pays your damages directly and your excess is not involved. If you are the one being claimed against, your insurer handles the liability and again your excess does not apply to the third-party payout.
Your insurer cannot settle the claim until the excess is paid. If you cannot pay immediately, speak to your insurer about payment arrangements. Some repairers will also allow the excess to be settled over a short period. This is precisely why choosing an excess you can genuinely afford matters so much at policy inception.
You still pay the excess upfront so your insurer can settle the claim quickly. If the other driver is at fault and insured, your insurer will typically pursue the recovery on your behalf. Once recovered, the excess amount is refunded to you. If the other driver is uninsured, recovery is not guaranteed.
Glass and windscreen claims may carry a separate, often lower, excess under your King Price policy. The exact amount is listed in your policy schedule. Contact King Price on 0860 50 50 50 to confirm what applies to your specific cover.
They are independent features. Your excess stays at the level you chose when you set up your policy (or as adjusted thereafter). Your premium decreases each month regardless of your excess level. The two features work in parallel, not in conflict.
Last reviewed:
Update history (1)
- Full rewrite: added TL;DR Answer Box, Key Takeaways, Glossary Terms, Comparison Tables, How-To Steps, Expert Quote, Stat Callout, Reviewed-By, and FAQ section. Updated to reflect King Price no-excess option for 45+ drivers and decreasing premiums feature.
Take control of your excess today
The king’s court has no room for nasty surprises. Whether you want a lower monthly premium by flexing your excess up, or complete peace of mind with the no-excess option (if you are 45 or older), King Price gives you the controls. Get a quote and adjust your excess in real time to see exactly how it shifts your premium. The throne of affordable cover awaits.
