Car Insurance Excess - What to Set It at

hibijibis on 26/10/2019 - 20:13

Hi everyone.

In the market for car insurance, and my premium seems quite high.
About 2k.

I've been offered excess options 300, 700, 900, 1000.
In the past I've taken 500 not because of any specific reason, but thinking of going a higher excess to reduce the year premium.
For example going from 300 excess to 700 excess reduces the yearly premium from 2300 to 1950 I think.

Just got me thinking what people normally set their excess to.
And if you were in an accident and it was less than 1k I'd be tempted to just pay it outright rather than claim in on insurance and risk premium going up, so does that mean I should go for a 1k excess?

thanks for your thoughts.
I've put it as a poll as well

Poll Options

  • 2
    300
  • 5
    500
  • 5
    700
  • 2
    900
  • 42
    1000
Automotive Car Insurance Insurance

Comments

  • Euphemistic on 26/10/2019 - 20:32
    +2

    Max it out, unless you are a bad driver, have no spare cash and intend to make claims.

    I maxed out excess years ago. Made one claim and we are still in front.

  • hawkeye on 26/10/2019 - 21:38

    Yeah some idiot hits you no insurance or refuse to pay guess who has a stuck car until they pay or you pay the excess.

    Same deal had some dumbass hit my fence and run off security camera had the plate got a police report with details of driver insurance paid out and deducted my excess WTF 3 years ago never to be returned the excess.

    There's a reason why insurance company's are rich promise everything deliver little

    • Ughhh on 26/10/2019 - 23:22

      Not every insurance requires you to pay excess first to initiate claim, then refund (assuming you have the other drivers details).

  • Cheeper on 26/10/2019 - 21:49
    +2

    Only you know the answer to this. How good a driver are you? Do you take risks, let loose with a bit of a hoon once in a while? Take the max.
    If you make an effort to avoid accidents and focus when driving then take a cheaper option.
    Out of curiosity what costs $2k to insure?

    • hibijibis on 27/10/2019 - 00:14

      its a family suv. kluger.
      apparently because we live near a shopping centre with a large amount of traffic insurance company is saying high risk of accidents. wtf.

      • SlavOz on 27/10/2019 - 11:07

        Everything is high risk of accidents to insurance companies. It's like when real estate agents point out how valuable a property is because of the standard everyday features nearby - Street lights, drains, traffic signals, and OMG this property has a footpath running right along it!!!! buy nao for just 650 zillion dollars!

  • Donaldhump on 26/10/2019 - 22:22
    +5

    If it goes from 2300 to 1950 to increase excess from 300 to 700, you are saving 350, and if u crash once pay 400 so lose 50

    Essentially you are hedging your bets you crash less than .9 times a year or so, ultimately comes down to how bad u r at driving, not taking into account others who hit u and have no insurance,

    • cloudy on 26/10/2019 - 22:32
      +1

      this is the way to look at it, breakeven point of claiming. As snake said, its about .9 times a year, put another way, if you think you claim on average once every 10-11 months, its about the same value whatever you choose.

      If you claim less than that, say once a year, or even more infrequently, take the lower premium/higher excess.

      If you claim more often that 10-11 months in a year, take the lower excess.

      ofcourse, use your history of claims as a guide, though, seriously, who claims once a year…( I hope no one puts hands up)

  • CheapSticks on 26/10/2019 - 22:37

    Your insurance premium seems too high !

    Is that bcoz of not so good history or insuring super luxury car?

    • boomramada on 26/10/2019 - 23:24

      18 yo with 2 door red Sigma 😆

    • hibijibis on 27/10/2019 - 00:16

      tell me about it. its a mainstream jap family suv.
      insurance company says its due to living close to a shopping centre and wife had a few dings.

      • Euphemistic on 27/10/2019 - 05:57
        +2

        and wife had a few dings

        Then maybe max excess is not for you.

      • CheapSticks on 27/10/2019 - 22:02

        Few Dings means you had some claims?

        Are you parking on street or on property as in undercover or garaged?

        Unless you have had some claims over the last day 2-3years, I think more than deductible you might save money searching for right insurance product/provider for you

      • CMH on 28/10/2019 - 05:05

        and wife had a few dings.

        I wouldn't go with max excess if the wife can't drive.

        And that's probably the reason why your premiums are high - expensive car AND crappy driver.

        Any chance the car is black too?

      • brad1-8tsi on 28/10/2019 - 13:19

        My dumb question: Have you shopped around insurers?

        if your wife has bumped the car a few times then maybe you need a smaller car more suited to her driving ability? Maybe an old fashioned station wagon or a people mover?

        Or a defensive driving course?

        • Euphemistic on 28/10/2019 - 14:34

          Sadly a defensive driving course is unlikely to teach spatial awareness. Most little bumps and rubs are as a result of underestimating the size of the vehicle, not being unable to drive defensively.

          • hibijibis on 30/10/2019 - 22:40

            @Euphemistic: yeh i think its a spatial awareness thing. sometimes forget about the back of the vehicle if you go in tight around a corner etc.

  • AdamFury on 26/10/2019 - 23:20

    If you back yourself then max out excess.

  • ihbh on 27/10/2019 - 09:32
    +1

    Insurance's purpose is to cover catastrophic types claims, not small administrative claims.

    Hence take out the highest excess. You are backing yourself to not make frivolous claims and will be rewarded by the insurer with a proportionately lower premium vs those who claim for minor things.

  • [Deactivated] on 28/10/2019 - 08:43
    +1

    Everyone here is so caught up with how good a driver you are.

    The excess is also applicable if your car is damaged in incidents like burglary, hail damage, hit and run…

    • Euphemistic on 28/10/2019 - 14:36

      True, but how often do these actually happen? I’ve been a car owner since last century. Haven’t had one stolen, no hail damage and hit and runs have been minor scuffs under the smaller excess anyway. I’m probably on the lucky end of the spectrum, but if you don’t claim for 3-4 wars you’ll be in front.

      • [Deactivated] on 28/10/2019 - 14:40

        I must be really unlucky then but I have had two in the last 4 years.

        I know someone who has had three car break ins in the last year alone.

        • Euphemistic on 28/10/2019 - 14:45

          Wow. Smaller excess for you then!

          • [Deactivated] on 28/10/2019 - 14:46

            @Euphemistic: I always go the 600-700 mark. No particular reason other than that's what I have been doing since I remember driving.

  • hibijibis on 30/10/2019 - 22:39

    increased excess to 700 brought down premium from 2100 to 1600. the higher excesses didnt really reduce it down by much, so left it at that and see how things go. thanks everyone for feedback.

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