Do you pay excess before or after?
Asked by: Rafael Kemmer | Last update: August 20, 2025Score: 4.7/5 (58 votes)
Do you pay excess before or after a claim?
The excess is the amount you pay when you claim. You might prefer to choose a higher excess to reduce your premium, but remember when you claim you'll need pay this, so only choose what you'd be happy to pay (and for car insurance, that isn't more than the value of your car).
Do you pay excess before or after repair?
You pay your car insurance excess when you make a claim on your car insurance policy, on a per-incident basis. This means you need to lodge a claim and pay an excess for each separate incident. In most cases, for example if repairs need to be made to your vehicle, you will need to pay the excess before work can begin.
When should I pay excess?
1. The excess amount is the first amount payable by you when your claim is settled or paid out. 2. It serves to motivate you to be more responsible, to take better care of your valuables and to prevent small, petty claims.
How does excess work in car insurance?
In simple terms, car insurance excess is the amount you agree to pay towards the repair of your car if you need to make an insurance claim. So, if your car's damaged in an accident, there'll be a set amount you'll have to pay towards the repairs and your insurer will cover what's left of the cost.
Do I have to pay excess if not my fault?
What happens when you pay excess?
An excess is an amount that you must pay towards each claim you make. An example: Imagine your car is damaged in a covered accident and needs $3,000 of repairs. If your policy has a $500 excess, then you'll need to pay the $500 excess and your car insurance will cover the remaining $2,500 for the cost of repairs.
What happens if I can't pay my excess?
What if you cannot afford the excess? If you do not have the money available to pay the excess your insurer may refuse your claim or it might deduct the amount from what it pays towards the repairs.
Is it good to pay excess?
Car insurance excesses deter people from making lots of claims for minimal damage (like a cracked door mirror). By reducing low-value claims, it helps to keep the overall cost of insurance down for everyone.
How do I know if I'm overpaying my car insurance?
In order to determine if you're overpaying, you must compare your insurance rates with other companies and see if you're getting a higher amount for the same coverage. If you are, then there are various reasons why you're spending way more than you should for your insurance.
How is excess calculated in insurance?
How Excesses Are Calculated. The excess amount that an insurance company presents you with is calculated based on a variety of personal factors, including the car you drive, where you live, how you use your car, the measures you've take to look after and safeguard your car, how old you are, and your driving experience.
Do I get my excess back if it's not my fault?
Paying excess for a car accident that isn't your fault
When you pay the excess for a car accident which isn't your fault, you may need to claim this back from the insurance company of the driver who caused the accident once the claim is settled, if you don't have legal expenses cover to pay this for you.
Do you pay before or after a repair?
You don't need to pay for a car service or repair before any work has been completed. This is important. You should be wary of a garage that expects you to pay money upfront. You also only need to pay for work that has been completed.
Do you pay for insurance before or after coverage?
Most states require you to carry car insurance. Unlike most bills that you pay in arrears, such as your utility bills, when you pay for your car insurance, you're actually paying for your coverage in advance.
What happens if no one is at fault in an accident?
But what will happen if no one is at fault for your car accident? You can always file a no-fault car insurance claim. The insurance provider will compensate the policyholder and its passengers for the cost of minor injuries and loss of income regardless of who caused the accident.
Do I pay excess if not at fault direct line?
If you're in an accident with an uninsured driver that isn't your fault, we'll protect your claims-free years and also cover your excess. Make sure you get the registration number, make and model of the other vehicle, and the other driver's details (if possible) to make a claim.
Should I pay more or less excess?
The answer to this depends on whether you have the 'rainy day savings' to potentially pay a higher excess if you get into an accident, Staff says. Having a higher insurance excess will mean a lower premium, which is certainly convenient provided you never have to make a claim.
Why did my car insurance go up $500?
More severe and frequent car accidents
Vehicles head east on a Los Angeles freeway during the evening rush hour commute on April 12, 2023 in Los Angeles, California. That has led to an increase in claims that is well above historical averages because of their severity, according to LexisNexis Risk Solutions data.
How much insurance is too much?
It's recommended that you have enough coverage to pay off all your debt, about 10 to 15 times your annual income, and enough to pay for anticipated expenses, like your children's education. If you have more than that total amount, you're probably overinsured.
Should I still pay my car insurance if my car is totaled?
Once a car is totaled and you sign the title over to the insurance company, the car no longer belongs to you and you don't have to pay to insure it. To legally drive a car that was totaled, you have to have the car inspected, get a "rebuilt" title, and purchase new insurance.
Do you have to pay excess up front?
You pay car insurance excess when you make a claim for damage to your car on your own insurance. But you don't have to pay it in a lump sum. Most of the time, when you make a claim, your insurer will take the excess away from your payout. That means you usually can't pay for your excess in instalments.
Can you pay off your excess?
Normally, a car insurance excess is paid as a lump sum, not in instalments. If you can't pay it as a lump sum due to financial hardship, you can ask us whether you might be entitled to assistance. If you are, we may give you longer to pay the excess or allow you to pay it in instalments, for example.
How does excess work on insurance?
Insurance excess is the amount you have to pay towards the total cost of an insurance claim. It's usually a pre-agreed amount. Your insurer will then contribute the rest – up to the limit of the cover. You'll see insurance excess on insurance products like travel, motor, home, and health.
Can I claim back my excess?
You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.
Will my insurance go up with a 50/50 claim?
In some car crashes, both drivers may share equal responsibility, resulting in 50 50 fault. In these cases, each driver's insurance typically covers their own damages. This could potentially lead to premium increases for both parties.
What happens if you overpay your insurance?
Carriers generally issue a request for refunds as soon as they become aware of an overpayment. However, events and state laws often conspire to further delay when the carrier can legally request the refund — a circumstance that forces the process to take far longer than anyone would like.