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What is an excess?

An excess is an agreed amount of money that you, the policy holder, is liable to pay in the event of an insurance claim being settled. For example, if the excess on your car is R3 000, and the damages amount to R50 000, MiWay will pay the remaining R47 000 once you have paid your excess to the repairer.

Do I have to pay a car insurance excess even if it wasn't my fault?

Unfortunately, yes. An excess is payable whenever a claim is submitted and it's the first payment that needs to be made in the event of a claim, whether it was your fault or not. You see, the administrative cost of a car insurance claim is the same, regardless of who’s at fault. If you’re not at fault, you can claim the excess amount back from the guilty party. Unfortunately, this can take a long time, especially if the guilty party isn't insured but you can count on MiWay's legal recoveries department to do their utmost to recover your excess free of charge.

There are certain circumstances when an excess cannot be recovered, for example:

  • You, the insured, do not have the guilty party’s details
  • The guilty party does not have any income or assets to attach
  • The legal costs outweigh the recovery costs (excess amount)
  • The guilty party cannot be traced
  • The merits of the claim do not justify the recovery of the excess

Does an excess affect my insurance premium?

  • With MiWay's standard car insurance, you have the ability to choose your own excess. Choosing to pay a higher excess can significantly reduce the cost of your car insurance.