What are the different types of car excess?
Ever wondered what car insurance excess is and how it affects you?
Let's find out.
Car insurance excess is the amount you pay towards the cost of your claim for each incident covered by your policy.
The money goes towards the cost of repairing or replacing your vehicle.
You confirm the amount you agree to pay before you take up or renew your policy.
So it's important to be familiar with the different types and whether they could apply to you.
At AAMI, there are six types of excess: standard excess, unlisted driver excess,
flexi-premium excess, age excess, inexperienced driver excess, and driver history excess.
First we have standard excess. A standard AAMI car insurance excess is the base amount you would pay for a claim covered by your policy.
Not every claim you make will require it.
For example, if you weren't at fault and you can provide the name and address of the at fault driver and the registration details of their vehicle, you probably won't have to pay an excess.
Second, some excesses are increased for unlisted drivers.
If you have AAMI Comprehensive Car Insurance, let us know when someone is driving your car regularly as an additional driver.
A higher age excess or inexperienced driver excess will apply to unlisted drivers.
A regular driver might be anyone who you expect to drive your car more than once during your policy period.
Learners don't need to be listed because you or another experienced additional driver will be in the car with them.
Though, the age or inexperienced driver excess will apply if they're driving at the time of an insured event.
Don't forget to let us know when they move on to their P-plates.
Third, we have have AAMI age excess.
An AAMI age excess will apply if you or another person under 25 has an accident while driving your vehicle and you make a claim.
Similar to the age excess, we have inexperienced driver excess.
If the driver is 25 years or over and has had their licence for less than two consecutive
years, or is a learner driver, you'll need to pay an inexperienced driver excess.
The age or inexperienced driver excess are in addition to the standard excess and any other excess that applies.
On top of that, if they're not listed on your policy, a higher inexperienced driver excess applies.
If you do have someone else using your vehicle, add them to your policy.
Next, we have flexi-premiums excess.
At AAMI, voluntary excess is called flexi-premiums excess.
This allows you to pay a higher amount in the event of a claim in
exchange for a cheaper premium.
That means you'll pay less overall if you don't have any accidents, but you'll pay more if
you do get into a scrape and an excess is payable.
You can choose how much
excess you want to pay
from our options when you're getting a quote or renewing your policy.
If you choose a higher excess, you'll usually pay a lower premium and vice versa.
The flexi-premiums excess is available for AAMI comprehensive car insurance, but not AAMI third-party insurance.
Lastly, we have driver history excess.
A driver history excess applies to people who have had their licence cancelled, suspended, disqualified, or restricted in the three years prior to the start of the current policy period.
We may not offer insurance to someone with this driving history.
Additional excesses only apply if the relevant driver was driving, using or in charge of the car
at the time of the incident.
They will always apply in addition to a standard and flexi-premium excess.
With all the different surprises life can throw at us, it's important to be ready.
AAMI comprehensive car insurance provides cover for accidental loss or damage to your car from incidents like flood, collision and impact, liability for accidental loss or damage to another person's car or property up to $20 million, malicious damage or vandalism, hire car after theft up to 21 days, two years new for old replacement, following write-off or theft, after claim expenses like emergency accommodation and more.
Conditions and exclusions apply, so check out the relevant product disclosure statement for more info.
You can save up to $50 when you buy a new car insurance policy online.
Head to our website to find out more.
The great thing about having car insurance is that if you’re involved in an accident, you may not need to pay the full upfront costs of repairs. Which is lucky - that can be quite expensive!
But before you get prepped for that post-accident shopping spree, keep in mind that if you’re at fault when you make a car insurance claim, you’ll often still need to pay an excess.
What is an excess?
An excess is the amount you pay towards the cost of your claim for each incident covered by your policy. The total excess you are required to pay is determined by the circumstances of your claim. If you give us the name, address and vehicle registration number of the other driver and they were at fault, we can waive your excess. It does not otherwise impact the cover under your policy or your ability to make a claim.
Here’s a list of the main different types of car excess you may come across.
Standard excess
Standard excess applies to all claims unless your policy states no excess applies to your claim. This is standard across all AAMI policies, unless otherwise stated in your PDS.
Flexi-Premiums excess
Commonly known as ‘voluntary excess’, this allows you to pay a higher amount at the time of a claim, in exchange for cheaper premium costs throughout your period of insurance. If chosen, this excess applies in addition to any other excess that applies. Choosing a higher AAMI Flexi-Premiums excess reduces your premium. You can choose how much excess you want to pay when you’re getting a quote, or renewing your policy. If you choose a higher excess, you’ll usually pay a lower premium – and vice versa.
Find out more about Flexi-Premiums
Age/inexperienced driver excess
Usually, if a driver is under 25 years old you will need to pay an age excess (this includes a learner driver). If the driver is 25 years or over and has had their licence for less than 2 consecutive years or is a learner driver, you will need to pay an inexperienced driver excess. The age or inexperienced excess are in addition to the standard excess and any other excess that applies. On top of that, if they’re not listed on your policy, you could attract an even higher excess if they’re driving when an accident occurs.
So that means that even if your sister is just visiting from interstate for a week and borrowing your car a couple of times, it may be better to add her to your policy. It’s easy to do through your AAMI log in or the AAMI App, and considering how much money it could save you, it’s worth the bit of effort.
Driver history excess
This excess applies if a listed driver involved in the accident has had their licence cancelled, suspended, disqualified or restricted in the 3 years prior to the start of the period of insurance.
Understanding the different types of excess is important, because if you’re involved in an accident where you’re at fault, this will be your out of pocket expense. For more information about the excess that applies to your AAMI Car Insurance policy, check out the details in your PDS, or call one of our friendly team members on 13 22 44, 8.00am – 10.00pm (AEST/AEDT). Or see what you could save with a quick, online quote.
Read more:
- Buying a new car? Here’s how it may impact your premium
- Customising your car insurance
- What to do in a minor car accident
Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.