Step 1. I'm insured but can't afford to pay my excess
The excess is the cost an insured person must pay their insurance company if they choose to make a claim with their insurer. The insurer is asking you to contribute an amount to the costs of the claim so that you share some of the risk. This is to reduce claims and premiums (the cost of insurance). If you are in financial hardship, it can be hard to pay your insurer the cost upfront. You can ask your insurer:
- if you can pay the excess in instalments
- to deduct it from your claim- this means the insurer pays the other party the amount they are claiming less your excess. The other party or their insurer may then chase you for the balance.
For more information see:
- your own insurer has paid the amount claimed by the other party, less your excess, and
- the other party (or their insurer) is chasing you to pay the deducted amount, and
- you can’t afford to pay that amount.
- the Why do I have to pay my excess? Or multiple excesses fact sheet on our website