Budget Insurance – Unfair Claim Deductions, Excess Discrepancy, and Extremely Poor Communication

I am extremely disappointed with the service and handling of my claim by Budget Insurance.

On 25 November 2025, I logged into the Budget Insurance app and noticed that my excess was reflected as R7,500, whereas I was under the impression that my excess was approximately R6,300. I immediately contacted Budget Insurance to query this. During that call, the consultant advised that my excess could be reduced, and it was adjusted to R5,300.

Later on 25 November 2025 in the afternoon, an incident occurred where I stopped due to flooding on the road, and an item from my back seat moved forward and damaged my vehicle’s radio.

I reported the incident to Budget Insurance on 26 November 2025, clearly stating that the damage occurred on 25 November 2025.

From that point onward, the service I received was unacceptable. I received no proactive communication from Budget Insurance and had to continuously follow up myself. Promised call-backs, including from a manager, never happened.

I was instructed to obtain a quote. As my vehicle is a Peugeot 208 (2022 model) and the radio is an integrated system controlling critical vehicle functions such as air conditioning, traction control, tyre pressure monitoring, and vehicle settings, I obtained a quote directly from Peugeot, the manufacturer of the vehicle. The quote was approximately R27,000, as I trust the manufacturer to correctly repair an integrated system.

Budget Insurance later advised that they had obtained a quote from their panel beaters for approximately R23,000. I explained that I was not comfortable using panel beaters, given the importance of the radio to the vehicle’s systems.

I was then told I had two options:

Use Budget Insurance’s panel beaters, or

Accept a cash settlement

I opted for the cash settlement.

However, the deductions app**** to my claim have been inconsistent and constantly changing. I was initially advised that my excess would be R7,500, then informed of an additional under-25 excess of approximately R2,000, and later told there would be a further 20% deduction for not using Budget Insurance’s panel beaters. These deductions were never clearly explained upfront and changed depending on which consultant I spoke to.

Despite repeatedly requesting to speak to a manager regarding the excess change (which occurred before the incident), the escalating deductions, and the lack of communication, no manager has contacted me to date.

On 5 January 2026, I contacted Budget Insurance again and was told my claim had been approved and that I should take the vehicle to their panel beaters — despite clearly stating multiple times that I would not be using them and had opted for a cash settlement. At this point, I was informed of yet another additional deduction, which had never previously been mentioned.

I pay R1,500–R1,700 per month in premiums on a vehicle insured for approximately R200,000, yet I have been left to chase my insurer for weeks with no clear answers, accountability, or proper feedback.

Budget Insurance is quick to collect premiums but extremely slow and inconsistent when a claim is submitted.

I am requesting:

A clear, written breakdown of all deductions app**** to my claim

Written confirmation of which excess applies, given that it was adjusted before the incident

Direct contact from a senior consultant or manager

A fair and final resolution of my claim without further delays or changing conditions

If this matter is not resolved urgently, I will escalate it to the Ombudsman for Short-Term Insurance (OSTI).

Policy number and claim number available on request.