When Do You NOT Have to Pay an Excess in Australia?
In a Nutshell: In most cases, you pay your excess when you make a claim. But there are specific situations where your excess is waived — most commonly when you're not at fault. Other exceptions include some natural disaster claims, windscreen repairs, and specific policy add-ons. Understanding these exceptions can save you hundreds or thousands of dollars.
When Excess Is Waived — Complete List
| Situation | Excess Waived? | Details |
|---|---|---|
| Not at fault — other driver identified | ✅ Yes | At-fault driver's insurer pays all costs |
| Not at fault — hit and run (driver later identified) | ✅ Yes | Once liability is established, excess is refunded |
| Not at fault — uninsured at-fault driver | ⚠️ Varies | Some states have an excess for claiming against the uninsured fund |
| Hit and run — driver never found | ⚠️ Varies by insurer | Some waive it, others require payment |
| Windscreen repair (chip/crack) | ✅ Yes — nearly all policies | Free to encourage prompt repairs |
| Windscreen replacement | ⚠️ Most policies | $0–$100 — check your PDS |
| Fire (not your fault) | ⚠️ Standard excess applies | Unless an optional fire excess waiver is included |
| Theft of vehicle | ⚠️ Standard excess applies | Unless a theft excess waiver is included |
| Natural disaster (declared emergency) | ⚠️ Varies by insurer | Some insurers waive excess for declared disasters |
| Hail damage (widespread event) | ⚠️ Some insurers waive | Only if the insurer declares a "no excess" event |
| Animal collision (kangaroo, etc.) | ⚠️ Standard excess applies | Some insurers have a reduced kangaroo excess |
| Claim on CTP (injury) | ✅ No excess | CTP has no excess — it's injury cover |
| Third party property claim (not at fault) | ✅ No excess | You claim against the at-fault driver — no excess for you |
| You're excluded from paying | ✅ Depends on your policy | Some premium policies offer one claim per year with no excess |
What to Do If Your Insurer Asks for Excess When It Should Be Waived
| Step | Action |
|---|---|
| 1 | Check your PDS — confirm the waiver condition |
| 2 | Ask the claims officer — "Why is this excess applied?" |
| 3 | Reference your policy — "My policy says excess is waived when..." |
| 4 | Escalate to a claims manager — if the claims officer doesn't agree |
| 5 | Lodge a formal complaint — use the insurer's internal dispute process |
| 6 | Contact AFCA — if the insurer still refuses after 45 days |
Insurer-Specific Excess Waivers
| Insurer | Special Excess Waiver Policies |
|---|---|
| NRMA | Waives excess for not-at-fault claims with identified driver; some hail events without excess |
| AAMI | Waives excess for not-at-fault claims; no excess on windscreen repair |
| Allianz | Waives excess for not-at-fault claims; no excess for windscreen replacement on some policies |
| Budget Direct | Standard — not-at-fault claims; check for public declared events |
| Youi | Customisable — can include an optional "no excess on any claim" add-on |
| RACV | Waives excess for not-at-fault; some declared disaster events |
State-Based Excess Waiver Schemes
| State | Waiver on CTP/Emergency |
|---|---|
| Victoria (TAC) | ✅ TAC has no excess — it's a no-fault injury scheme |
| NSW | No excess on green slip claims (injury only) |
| QLD | No excess on CTP injury claims |
| ACT (MAI) | ✅ MAI is a no-fault injury scheme — no excess |
Key Takeaway
- No excess when: not at fault (identified driver), windscreen repair, or state injury scheme (CTP/TAC).
- May be waived: declared natural disasters, hit and run (some insurers).
- Standard excess applies: theft, fire, at-fault accidents, single-vehicle accidents.
- Always check your PDS — don't assume you have to pay; ask your insurer to confirm.
- If you think you're being wrongly charged an excess, escalate — first to a claims manager, then to AFCA.
- Some premium policies offer "no excess on the first claim" — consider this feature when comparing policies.
- The most common waiver: not at fault with an identified driver.
Last updated: July 2026
Disclaimer: This article provides general information about when car insurance excess is waived in Australia. Policy terms vary by insurer. Always read the PDS and confirm with your insurer.