Australian Auto Insurance – Different Levels of Excess

To eliminate the amount of risk that they have to take on themselves, most auto insurance carriers allow their customers to set an excess figure at the time of a policy purchase. If a subsequent accident occurs, the policyholder must meet the agreed excess payment before the carrier will settle any outstanding balances on repair costs. To adjust the excess figure, a sliding bar is provided on the carrier website when auto insurance quotes are being applied for.

In Australia, there are several different forms of auto insurance excess and road users should be aware of the differences in them before any auto insurance purchase is made.

Basic Excess

On some auto insurance policies, a basic excess payment will be applicable regardless of whether you choose a figure or not. This figure will be added to your auto insurance automatically and you should be made aware of your obligations at the same time your policy is purchased. Any basic excess payments that you are liable for will be documented within the terms and conditions of the policy itself.

Voluntary Excess

The voluntary excess payment is the amount of money you are obliged to pay on any auto insurance claim based on the agreement you have already reached when originally adjusting your auto insurance quotes. This figure will also be specified in the terms and conditions of your policy.

Age Excess

In Australia, as with many other countries, young drivers are seen as a considerable risk. Many auto insurance policies will apply an excess for motorists under 25 years of age. This figure will be applicable to principal and nominated drivers alike and can also be found in the small print of your policy.