How much car excess should I pay?


Editorial team Published on

✅ Pay a voluntary car insurance excess amount that you can comfortably afford out of pocket in an unexpected emergency, typically ranging between $250 and $500 on top of your compulsory excess.

📊 How Excess Works

  • Compulsory excess: Fixed minimum amount set by your insurer based on your age and risk profile.
  • Voluntary excess: Optional extra amount you choose to lower your regular premium.
  • Total payout: Total excess (compulsory + voluntary) is subtracted from your claim payout or paid upfront.

💡 Choosing the Right Amount

  • Low excess ($0 – $250):
    • Higher monthly premiums
    • Better if you have low cash savings or high risk of minor bumps
  • Medium excess ($250 – $500):
    • Balanced monthly premiums and upfront cost
    • Most common sweet spot for average drivers
  • High excess ($500 – $1,000+):
    • Lowest monthly premiums
    • Only choose this if you keep a dedicated emergency fund covering the full excess amount