An excess is the amount that you are liable to pay when a claim is settled.
At OUTsurance, we offer a low fixed excess, regardless of the value of your car insurance claim. The exact excess amount is selected by you when you take out cover, but this amount can be changed at any time, on your request. It’s important to mention that changing the excess amount will have a direct effect on your monthly premium. The higher your excess, the less your monthly premium. Alternatively, if you choose to pay a low excess amount, you may need to pay a slightly higher premium every month.
If you’re in an accident, you’ll pay your selected excess amount directly to the service provider and we’ll then pick up the bill for the remainder of the cost.
Other car insurance companies do not necessarily go down the same route of applying a fixed excess and may charge you a percentage-based excess, directly relating to the value of your vehicle claim subject to a certain minimum excess amount being payable.
This means that if you’re in a car accident, you may need to pay a certain percentage of the total repair cost. Let’s say for example, your car is valued at R400 000 and gets written off in an accident. If your percentage-based excess is set at 5%, you may end up with a bill of around R20 000.
At OUTsurance, we prefer offering you a low fixed excess as we believe that you’d rather know exactly how much an accident will cost you, rather than having to wait to see what the damage amounts to. So, whether your car is written off, or whether you’ve had a bumper bashing – you’ll always pay the same basic excess amount.