• A Monkeys' Guide to Insurance Excess
  • Insurance is essential for tradies because it protects you against the unexpected and offers you peace of mind. However, it's easy to overlook the specifics of your insurance policies when it comes to their excess and not give it a second thought after taking out a policy. To make sure you're not left with any nasty surprises at claim time, it's important that you get to know what insurance excess means to you.

    What is Insurance Excess?

    An insurance excess is the contribution you pay when you make a claim. The amount of excess will be specified on your insurance policy and it's important you carefully read your policy details so you're not left with any surprises when it comes to claim time.

    For example, if you have a $200 excess and make a $2,000 claim, the insurer will be putting $1,800 towards the claim while you'll be responsible for the remaining $200.

    What Are The Different Types of Excess?

    There are a number of different types of insurance excess including:

    • Standard Excess - This is the most common form of excess and is a standard amount of money you'll need to pay when you make a claim. The amount of excess can differ between policies and different states so it's important to find out what you'll be expected to pay in excess if you make a claim.
    • Voluntary Excess - If you're trying to reduce the cost of your insurance premium, you can choose to pay an increased excess if you lodge a claim in exchange for reduced premiums. However, make sure that the increased excess amount you nominate is affordable as you never know when you'll need to claim.
    • Age/Inexperienced Driver Excess - This type of excess applies to car insurance and means that in many cases, a higher excess will apply for a younger, less experienced driver. The age excess generally stops once you reach the age of 25 but this will depend on the individual policy.
    • Glass/Windscreen Excess - Again, this applies to car insurance as sometimes there will be an excess on glass or windscreen replacement, although many policies offer free or reduced excess rates with a higher premium.

    Who Do I Contact for Further Information?

    As a tradie, you probably have quite a few insurance policies in place to cover the various areas of your work and it's important you understand the excess that applies to each policy. If you get to know your policy, it means you'll know exactly what to expect when it comes to a claim.

    If you're not sure about the excess that applies to your policy or you'd like more information, speak to your insurance broker as they have the industry knowledge to offer you the best possible advice. You can also read your insurer's Policy Disclosure Statement for further information.

    To discuss your insurance needs or for any other questions, contact All Trades Cover on 1300 826 850 today or fill in our easy online form for a quick quote.