Understanding excess in car insurance

      What is a car insurance excess?

      An excess is the amount of money you pay or contribute towards a claim you’ve made. Depending on the type of car insurance policy you have, there is a basic excess, and there might be other additional excess(s) listed on your Certificate of Insurance.

      An excess helps contribute towards the cost of repairing, fixing, or replacing an insured vehicle. The cost of your excess may vary depending on the type of car you drive, your age, your driving experience, and your premium.

      What are the different types of excess in car insurance?

      There are different types of excesses in car insurance and they often vary between insurance providers. Excess is influenced by:

      • What your claim relates to.
      • Who was driving your car.
      • The type of cover you have chosen.


      At Everyday Insurance, we have the following types of excess:

      Basic Excess

      Basic excess is the amount you pay when claiming your policy. You choose this amount when you take out or renew your insurance.

      Age Excess

      Age excess applies if a driver is under 25 and needs to make a claim under the policy. Choosing to exclude cover for drivers under 25 means there will be no cover if they have to make a claim.

      Undeclared Young Driver Excess

      This excess applies if someone under 25 needs to make a claim under the insured car but isn’t declared as a driver on the Certificate of Insurance. This excess doesn’t apply to learner drivers.

      Inexperienced Driver Excess

      This excess applies if a driver is 25 years of age or older and has held a valid licence to drive in Australia for less than 2 years (excluding learner’s licences and permits).

      Outside Odometer Excess

      This excess applies if you have Everyday Insurance Drive Less Pay Less cover on your Certificate of Insurance and at the time you make a claim:

      • Your car’s odometer reading is below the start odometer reading or above the end odometer reading shown on your Certificate of Insurance.
      • Your car’s odometer is faulty.
      • Your car’s odometer has been replaced, the reading has changed and your policy details were updated before making a claim.

      When might I not have to pay car insurance excess?

      There are some situations where you might not need to pay an excess, such as if:

      • The damage was caused by a third party driving another vehicle;
      • you weren’t at fault for the accident; and
      • the third party that caused the damage can be identified.


      See the Car Insurance Product Disclosure Statement for more information about excess.

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      Why pick Everyday Car Insurance?

      Drive Less Pay Less

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      * Savings between $0 to $282 derived from premium comparisons between Everyday Comprehensive car cover option and Drive Less Pay Less option. Calculations based on profiles of existing Everyday Car insurance customers who advised they drive under 15,000 km annually. Current as at 30 June 2022. Actual savings are determined by your individual circumstances, including the kilometres selected, excess chosen and other risk factors. Minimum premiums may reduce savings. Kilometres can be increased during the policy period, an additional premium is payable. In event of accident and end odometer reading exceeded, additional excess applied.