The excess is the part of a claim you pay. On a heavy vehicle or plant policy there is usually more than one, and they can apply together — which is why an operator who expected to pay $2,000 sometimes finds they are paying considerably more.
The Common Types
- Base or standard excess. Applies to most claims.
- Age excess. Applies when the driver is under a set age, often 25 or 30.
- Inexperienced driver excess. Applies where the driver has held the relevant licence class for less than a set period, regardless of age.
- Unnamed or casual driver excess. Applies to drivers not listed on the policy.
- Windscreen excess. Usually lower, sometimes waived once per period.
- Theft or fire excess. Sometimes higher than the base.
- Imposed excess. Applied by the underwriter because of claims history, driver profile or an unusual risk.
- Overturning or off-road excess on certain plant and tippers.
Do They Stack?
Frequently, yes. A young, recently licensed casual driver in a rollover can attract several at once. The policy schedule sets it out, and it is worth reading before you put a new driver in the seat rather than after.
When You Do Not Pay It
Where you are not at fault and the other party is identified and insured, many policies waive the excess, or refund it once recovery succeeds. Two things make that easier: the other driver’s details, and evidence — which is the practical argument for cameras.
Choosing a Higher Excess Deliberately
Lifting the excess reduces the premium. Whether that is a good trade depends on your claims pattern, not on the discount.
- If you have frequent small damage, a higher excess simply moves cost onto you.
- If your losses are rare but large, carrying more of the small stuff can be genuinely economic.
- Whatever you choose, it must be an amount the business can pay on the day, without borrowing.
Multiply the excess increase by the number of claims you realistically expect in a year, and compare that against the premium saving. If the saving does not clearly beat it, keep the lower excess.
How the Excess Interacts With Downtime
An excess is not only a payment; it is a decision point. Small claims below or near the excess are often better absorbed, because a claims record affects future pricing. The exception is anything with a liability element — those should always be notified, even if you expect to pay the repair yourself.
A Worked Example of Stacking
A tipper is damaged in a single-vehicle rollover. The schedule carries a base excess, an inexperienced driver excess because the driver has held the licence class for eight months, and an overturning excess on that vehicle class. Depending on the wording, all three may apply, and the operator who budgeted for one is now funding three.
The lesson is not that the policy is unfair — those loadings are why the premium was affordable. It is that the excess schedule should be read before a new driver is rostered, not after the tow truck is called.
Excess vs Deductible vs Contribution
Different documents use different words for related ideas. An excess is the amount you bear per claim. A deductible generally means the same thing, and is more common on larger commercial programmes. A contribution or co-insurance clause is different again — it is a proportional reduction where the sum insured was too low, which is covered in our guide to underinsurance.
Whether to Claim at All
Below a certain size, claiming can cost more than it recovers once the effect on your record is counted. A rough test:
- Is the repair meaningfully above the excess? If not, absorb it.
- Is there any liability element, or any chance of injury being alleged? If so, notify regardless, even if you fund the repair yourself.
- Would the claim be your third or fourth this period? Frequency drives pricing more than size.
- Is there recovery potential from an identified third party? If so, claim — the excess is often refunded.
Notifying an insurer is not the same as claiming. Where there is any doubt about liability, notify.
Common Questions
Is the excess payable per claim or per year?
Per claim, on almost all commercial motor and plant policies.
Who do I pay it to?
Usually the repairer on collection, or it is deducted from the settlement.
Can an excess be removed?
Base excesses generally cannot, but some can be bought down for a higher premium. Age and inexperience excesses are harder to move.
Talk It Through
If you are unsure which excesses your schedule carries, send it to us. Get in touch or call 1300 983 940, or read more about truck insurance.
General advice only. This article does not take your objectives, financial situation or needs into account. Consider the relevant PDS and Target Market Determination before deciding on a policy.