Choosing car insurance excess with King Price

Excess is something you’ll hear (a lot) when it comes to insurance. We totally get you. It’s a term that’s thrown around as quickly as a rugby ball when the Springboks are busy with their Captain’s Run. So, let’s slow it down a bit and take you on a take a road trip to understand excess for your car insurance.

What does excess mean?

To put it simply, excess is an amount you’ll pay when you make a claim, and you can trust King Price to pay what’s due to you. It’s the portion you’ll pay when you go through the claim process. Think of it as a co-payment… It’s your contribution, and we’ll pay what’s left.

You have an accident.

You claim.

Your repair costs R25,000.

Your chosen excess is R4,000.

You’ll pay R4,000.

We’ll pay R21,000.

Can I choose what excess I pay? 

Yep, with King Price, you can select your car insurance excess. Take a closer look at your budget and what you need, as that’ll help you decide what excess you’ll be able to pay if you ever have to claim. Your excess amount is noted on your policy schedule.

Why choose your own excess?

This choice will directly impact your monthly premiums. The lower your monthly premium, the higher your excess, and vice versa. A way to work out the best excess to suit your pocket is to calculate what you’ll be able to pay as a lump sum if you had to make a claim tomorrow. It’s all about planning when the time to claim comes around.

Don’t be overly confident with your excess because if you claim more than once a year, you’ll need to pay this excess with each claim you make. Yikes! So make sure you have enough bucks to cover more than just 1 excess payment. You never know what might happen…

How to choose the right excess

Here are some more helpful tips to help you choose the right excess:

• Risk assessment: Get in tune with your driving habits and the likelihood of making a claim. If you think you’ve got the driving skills of Lewis Hamilton, but you’re more of a Nicholas Latifi, then maybe set some money aside for an excess payment or 2. If you rarely claim, a higher excess might be a better option.

• Financial planning: Determine whether you prefer a lower monthly premium or lower out-of-pocket expenses. Remember our advice above about lower premiums meaning higher excess? Yep, this is where your financial planning comes into play. Sometimes it’s easier to pay a bit more for your monthly premium if you’re not the ‘saving for a rainy’ day kind of person to avoid a higher excess. It’s all about finding that sweet spot between saving now and not crying later.

Choosing your car insurance excess with King Price is a strategic way to manage your insurance costs. By understanding excess, you can make an informed decision about your financial goals. Remember, the key is finding a balance that gives you peace of mind and suits your budget.

Are you keen to get car insurance with King Price? Get a commitment-free quote today by simply clicking here or chatting to us on WhatsApp 0860 50 50 50.

Psst… This blog provides general info only, and doesn’t count as financial or product advice from King Price or our legal and compliance experts. Remember, all our premiums are risk-profile-dependent, and T’s and C’s apply. Our most up-to-date KPPD (policy wording) can always be found here.

Our website T’s and C’s can be found here.