When comparing car insurance quotes, most South Africans focus on one number: the monthly premium.
That's understandable. The premium affects your household budget every month.
But there is a second number that deserves just as much attention: the excess.
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What many motorists don't realise is that these numbers don't always stay the same. While premiums and excesses are often fixed, some insurers offer features that reward claim-free driving. At Prime South Africa, for example, clients can choose a reducing excess option that can reduce the basic excess to zero after 36 claim-free months, while comprehensive premiums remain fixed for 24 months for claim-free clients.
That means understanding these two numbers isn't just about comparing today's quote. It is about understanding what your insurance could look like a year or two from now.
Put the excess into rands
Consider two comprehensive car insurance quotes:
- Option A: R800 per month with a R10,000 basic excess
- Option B: R950 per month with a R5,000 basic excess
At first glance, Option A appears to be the better deal because it costs R150 less per month, saving R1,800 over a year. However, the lower premium comes with a trade-off: if you have an approved claim, you would need to pay R10,000 towards the claim before the insurer pays the balance.
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