A car insurance excess is what you pay when you make a claim, whether you are at fault or not. Almost all policies come with an excess. Mark’s car insurance comes with an excess of $50. This means that if the cost of repair after an accident is $950, the insurance company would pay $900. He would pay $50- the excess as stated in his contract. In a case where the repair costs less than his car insurance excess, he would cover it. Let’s say his side mirror of about $33 got bad in a crash, he cannot claim for it.

Car insurance excesses are important. They ensure that the insurance covers you in cases where you really need it. However, if Mark can prove that the fault is from the other party, and you fully recover the cost from their insurer, he can get back the excess.

It is very important for you to carefully read your Product Disclosure Statement from your insurer. This is the insurance contract between you and the insurer. This is because some insurers place some conditions and requirements for them to refund the excess. It could also include clauses and possible scenarios that would not require you to pay an excess.