What Is a Car Insurance Excess in New Zealand – and When Do You Pay It?

If you've damaged your car and are thinking about making an insurance claim, one of the first things you'll probably hear about is your insurance excess.

But what exactly is an excess, when do you have to pay it, and what happens if the accident wasn't your fault?

Here's a simple explanation for New Zealand drivers.

What Is a Car Insurance Excess?

An insurance excess is the amount you contribute towards an accepted insurance claim.

For example, imagine your vehicle needs $3,000 worth of repairs and the applicable excess under your policy is $500.

Depending on how your insurer handles the claim, you would generally be responsible for the $500 excess while the insurer covers the remaining approved repair costs.

Your actual excess will depend on your insurance policy.

Why Do Insurance Policies Have an Excess?

An excess means you share part of the financial cost when making a claim.

When choosing insurance, you may also be able to select a higher voluntary excess in exchange for a lower insurance premium.

However, that means you could have more to pay if you eventually need to make a claim.

Is There Always Just One Excess?

Not necessarily.

Your policy may have different excesses depending on the circumstances.

For example, additional or different excesses can sometimes apply depending on factors such as the age or experience of the driver.

This is why it's important to check your current policy rather than assuming you know what your excess will be.

What If the Accident Wasn't My Fault?

Don't automatically assume that you won't need to pay an excess.

How your excess is handled will depend on your insurer, your policy and the circumstances of the accident.

In some situations, an insurer may waive or refund an excess when another driver was responsible and the required information about that driver has been provided.

If another vehicle is involved, try to collect:

• The driver's name
• Address
• Phone number
• Vehicle registration
• Driver licence details
• Their insurance company
• Photographs of the vehicles and accident scene

Provide this information to your insurer when making your claim.

What If the Repair Costs Less Than My Excess?

This is where getting the damage assessed can be useful.

Imagine you have a $750 excess but the vehicle repair is estimated at $600.

Depending on your circumstances, making an insurance claim may not make financial sense because the repair cost is below your excess.

You may instead decide to pay privately for the repair.

However, every situation and insurance policy is different, so speak to your insurer if you're unsure.

Don't Guess the Cost From the Damage

A small-looking scrape doesn't necessarily mean a small repair.

Modern vehicle repairs can involve much more than simply painting over a scratch.

Depending on the damage, repairs could require:

• Removing damaged parts
• Panel beating
• Dent repairs
• Replacement components
• Surface preparation
• Primer
• Colour matching
• Spray painting
• Paint blending
• Reassembly

The best starting point is to have the damage properly assessed.

Insurance or Private Repair? Talk to Orewa Panel & Paint

Orewa Panel & Paint provides both insurance and private vehicle repairs in Orewa and the Hibiscus Coast.

With more than 35 years of industry experience, our team provides professional panel beating, automotive spray painting, dent repairs, rust repairs and accident damage repairs.

If you're trying to decide whether to make an insurance claim or pay privately, start by finding out what may be involved in repairing your vehicle.

**Damaged your car?**

Send Orewa Panel & Paint photographs of the damage through our online quote enquiry form or contact our team to discuss your vehicle.