Guide to Paying Car Insurance Excess in Australia – Forbes Advisor Australia

Not all drivers are created equal, and neither are the advantages attached to their insurance policies. Depending on where you are in life, the excess that applies to your policy may vary. It is wise to understand all the different types of benefits available to ensure your policy is the best fit.

Advantages of Young Drivers

If you are a young driver (under 25 years old), or a new driver, additional experience or excess age may apply to your policy. This is to protect your provider from the extra risk that comes with your inexperience on the road. After age 25—or at the end of two years for inexperienced drivers over 25—this will no longer apply, and your excess will be reduced.

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Voluntary Benefits

Most policy providers will give you the option to pay the excess voluntarily. This is a higher base excess and is often done as a method of reducing your premium. If you’re a careful driver or don’t drive often, this option can save you more in the long run. However, you need to make sure that you can pay extra in the event of an accident.

Basic or Additional Excess

Your basic excess is determined based on your claims history, the car you drive, where you live, and the type of policy you take out. This is a standard level of protection, however, you may opt in to additional benefits, such as an excess windshield which may include a free replacement. Voluntary excesses are other extras, such as surcharges for young or inexperienced drivers. It is also possible to increase your excess to cover damage caused by undeclared or unregistered drivers.