Owning a vehicle comes with the gift of independence, the awesome freedom of mobilisation. Vehicle insurance is critical for protecting that freedom. Successfully protecting your freedom also means understanding important insurance rules and regulations.


The term ‘excess’ often comes up when the owner of a vehicle claims for a loss of some sort, such as when your car window gets smashed. But what exactly is an insurance excess?
Good car insurance will cover most of the costs of fixing damages, but you will usually have to pay some excess amount to the auto shop that fixes your broken window. For instance, if the cost to fix the damaged window is R1 500 and your agreed upon excess, with your insurance company, is R500 then your insurance will pay out the remaining R1 000. Often, insurance companies give clients the option of raising their excess in return for lower monthly premiums.
Consumers should consider this balance. A higher excess can save you money each month, but it you will have to pay more out of your own pocket when recovering losses.
Another important term to understand when dealing with vehicle insurance is liability cover. All that a liability means is the minimum amount one has to pay per month in order to cover the possibility of injury or even death during an accident. If injury or death had to occur, the insurance company will most likely compensate for the medical bills as well as the loss from thereon, including loss of income and ability to work in order to earn that income.


If you had to choose OUTsurance to take out liability cover, you wouldn’t have to pay excess when it comes to personal car insurance for instance. Before signing anything to do with vehicle insurance, make sure you understand the terms stipulated. It will pan out in your favour.