Car insurance excesses
What is a car insurance excess?
A car insurance excess is the fixed amount you pay towards a claim.
Depending on the circumstances of the incident that led to your claim, you may have to pay more than one excess: your Basic Excess plus any additional excesses that apply.
For example, if someone under the age of 21 causes an accident while driving your car, you’ll have to pay your Basic Excess (let’s assume it’s $600) plus an additional excess of $600 due to the driver’s age.
It means that, if the damage bill was $5,000, say, you would pay $1,200 and we would pay $3,800.
Your Basic Excess and the additional excesses are shown on your Insurance Certificate.
If you make a claim, we’ll tell you which excesses apply and when and how to pay them.
You won’t have to pay an excess if the accident is deemed a no-fault accident.
What is the purpose of a car insurance excess?
A car insurance excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim – which in turn helps keep your premiums down.
Does the excess apply to each accident or incident?
Yes – the excess applies to each separate accident or incident that results in a claim.
What is a basic excess in car insurance?
Budget Direct’s Basic Excess is effectively the minimum excess you’re required to pay for an at-fault car insurance claim.
The amount of your Basic Excess depends on the state or territory in which your car is kept; by increasing your premium, you may be able to lower your Basic Excess (and vice-versa).
Depending on the circumstances of the accident that led to your claim, you may have to pay more than one excess: your Basic Excess plus any additional excesses that apply.
We’ll tell you when and how to pay us the excesses.
If I make a car insurance claim, what will the excess be?
Unless you or another driver of your car have a no-fault accident, you’ll be required to pay:
- your Basic Excess: the amount depends on the state/territory in which your car is kept; you may be able to increase it to lower your comprehensive insurance premium (and vice-versa).
….as well as any additional excesses that apply, namely:
- driver is under 21 years of age
- driver is 21 to 24 years of age inclusive
- driver has not held a full Australian or open licence for 2 or more years
- driver is not listed on your Insurance Certificate
- car has exceeded the kilometres per year selected, no odometer reading was provided or an invalid odometer reading was provided (applies only to Gold Low Kilometres Comprehensive policies).
The dollar amounts of your Basic Excess and the additional excesses are shown on your Insurance Certificate and can also be viewed in your online account.
Can I change my car insurance excess?
If you’re a comprehensive policyholder, you may, for a higher premium, be able to reduce your Basic Excess or, for a lower premium, increase it.
You can change your Basic Excess at any time by calling us on 1300 306 560 or logging into your online account and editing your policy.
(The additional excesses cannot be changed.)
Is there a driver-age excess?
Yes – Budget Direct car insurance policies require you to pay a driver-age excess if the driver of your car causes an accident and is aged under 25. This driver-age excess is an extra amount you pay in addition to your Basic Excess.
This additional excess applies regardless of whether the driver is listed on your policy. (Note that, to be covered, all household members must be listed.)
The dollar amounts of all additional excesses are shown on your Insurance Certificate and can also be viewed in your online account.
Is there an unlisted-driver excess?
Yes – if an unlisted driver of your car causes an accident, you’ll have to pay an additional, unlisted driver excess (over and above your Basic Excess).
You can avoid this additional excess by listing all drivers on your policy.
Note that, to be covered, household members must be listed on your policy.
The dollar amounts of all additional excesses are shown on your Insurance Certificate and can also be viewed in your online account.
Who pays the excess on a car insurance claim?
Budget Direct car insurance policyholders are required to pay an excess if they make an at fault claim.
This includes drivers who are wholly or partly to blame for an accident.
You won’t have to pay an excess if we decide another driver (or person) was entirely at fault and you can tell us, or we can obtain, their full name, residential address and vehicle registration number.
Do I have to pay an excess if the accident was not my fault?
You do not have to pay an excess if you have a no fault accident.
A no fault accident is one that meets the following criteria:
- we decide the driver of another vehicle (or another person) was entirely at fault, and
- you tell us, or we obtain, the at fault driver's full name, address, and vehicle registration number.
Do I have to pay an excess if my car's been stolen?
Yes – if your car’s been stolen you have to pay an excess, but only your Basic Excess.
Do I have to pay an excess if my car's been damaged by hail?
Yes – if your car’s been damaged by severe weather, including hail or floodwater, you have to pay an excess, but only your Basic Excess.
Do I have to pay an excess if my car's windscreen has been cracked or smashed?
Yes — your window-glass (including windscreen) excess is the same as your Basic Excess, however you have the option of reducing your window-glass excess to just $40.
You can do this when you buy a policy or — if you’ve already bought one — by calling us on 1300 306 560 or logging into your online account and editing your policy.
Note that you can reduce your window-glass excess only within 21 days of buying your policy, renewing it, or transferring it to a replacement vehicle.
Do I have to pay an excess if my car's been vandalised?
Yes – if your car’s been vandalised, or maliciously damaged, you have to pay an excess, but only your Basic Excess.
Do I have to pay an excess if my car's a write-off?
Yes – unless you or another driver of your car have a no-fault accident, you have to pay the Basic Excess and any additional excesses that apply.
When is a car insurance excess paid?
If your car is repairable, we’ll ask you to pay your car insurance excess before the repairs start.
If your car is written off and we are paying you a total loss settlement, we’ll deduct the excess from the final settlement amount we pay you.
If we settle your claim under the New Car Replacement benefit, we’ll ask you to pay your excess before we replace your car.
Can I pay my car insurance excess in instalments?
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.
