How Does an Excess Waiver Work?
In a Nutshell: An excess waiver means you don't have to pay your excess on a claim. This happens automatically when you're not at fault and the other driver is identified. Some policies also offer excess waiver as an optional extra for specific situations (e.g., no-excess windscreen replacement). You can never fully "remove" your excess — but you can qualify for a waiver in certain circumstances.
When Excess Is Automatically Waived
| Situation | Excess Waived? | Why |
|---|---|---|
| Not at fault — other driver identified | ✅ Yes — auto waiver | The at-fault driver's insurer pays all costs |
| Not at fault — hit and run (identified later) | ✅ Yes — waived after the other driver is found | Once their insurer accepts liability, your excess is refunded (if paid upfront) |
| Not at fault — hit and run (driver NOT identified) | ⚠️ May require payment | Some insurers waive it, others require you to pay |
| Windscreen repair (not replacement) | ✅ Yes — most policies | Windscreen repairs are often excess-free to encourage faster repairs |
| Fire or theft (no fault involved) | ⚠️ Standard excess applies | Unless the fire/theft policy specifically waives it |
| Claim against the uninsured fund | ⚠️ Varies by state | Some states have an excess for uninsured at-fault driver claims |
Optional Excess Waiver Add-Ons
| Add-On | How It Works | Cost |
|---|---|---|
| No-claim bonus protection | Protects your discount but doesn't waive the excess | $30–$80/year |
| Windscreen excess waiver | No excess for windscreen replacement | $0–$50/year (often included) |
| Hire car excess reduction | Reduces the rental car excess if you use a hire car | $20–$50/year |
| General excess waiver (rare) | Some premium policies offer one excess-free claim per year | Included in premium |
Excess Waiver vs Excess Reduction
| Feature | Excess Waiver | Excess Reduction |
|---|---|---|
| Effect | You pay $0 excess | You pay a lower amount than standard |
| Cost | Usually free (if not at fault) | Pay an add-on premium |
| Availability | Automatic (not at fault) or optional add-on | Available as add-on on some policies |
| Example | Not-at-fault claim: pay $0 | Reduced excess rider: pay $300 instead of $600 |
Paying Excess Upfront vs Refund
Many insurers require you to pay the excess upfront even when you're not at fault:
| Step | With Refundable Excess |
|---|---|
| 1 | You lodge a not-at-fault claim |
| 2 | Insurer asks for your excess (e.g., $500) |
| 3 | You pay it |
| 4 | Insurer investigates and confirms the other driver is at fault |
| 5 | Insurer recovers costs from the other driver's insurer |
| 6 | Your excess is refunded |
⚠️ Note: Some insurers don't require an upfront payment if you're clearly not at fault. Others always collect it upfront. Ask your insurer.
Policies That Include "No Excess" Features
| Policy Feature | How It Works | Excess |
|---|---|---|
| Windscreen repair | Chip/crack repair — no excess | $0 |
| Windscreen replacement | Full replacement — varies by insurer | $0–$100 |
| Glass-only claim | Some policies offer separate glass cover | $0 |
| Fire or theft (some policies) | First $X of excess waived | Varies |
| Emergency accommodation | If car is damaged far from home | Often $0 |
Key Takeaway
- Excess waiver = you don't pay excess (usually when not at fault).
- Automatic waiver: not-at-fault claim with an identified at-fault driver.
- Some insurers charge excess upfront and refund it after fault is determined.
- Optional excess waiver add-ons are available for windscreen, hire car, or specific situations.
- You cannot permanently "remove" your excess — but you can choose a zero voluntary excess (which only reduces the compulsory excess).
- Not-at-fault but no identified driver (hit and run): check your policy — some waive, some don't.
- Windscreen repairs are almost always excess-free on comprehensive policies.
Last updated: July 2026
Disclaimer: This article provides general information about excess waivers in Australian car insurance. Policy terms, waiver conditions, and refund policies vary by insurer. Always read your PDS.