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Question:
Your motor insurance policy has an excess of £100. What does this mean?
A
You will have to pay the first £100 of any claim.
explanation
This is a method used by insurance companies to keep annual premiums down. Generally, the higher the excess you choose to pay, the lower the annual premium you will be charged.
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Related Information
What is excess on a car insurance policy?
The sum of money you pay to a claim that occurs is called an "excess." This covers both the voluntary excess—the sum you decide to pay when purchasing a car insurance policy—and the mandatory excess—the amount set by the car insurance company. The two excess amounts added together indicate the most you would have to pay for repairs to your car if you filed an insurance claim. Many people decide to increase their voluntary excess in order to lower the cost of their car insurance. The good news is that an excess insurance policy can protect this excess.
How can I use this policy to save money?
The financial risk associated with high excess values on motor insurance policies can be eliminated for a reasonable price by purchasing a motor excess insurance policy. You can eliminate the financial risk of paying a large excess amount if an incident occurs by purchasing an insurance policy that covers the excess amount. Additionally, drivers use this sort of insurance to lower the annual price they pay for their motor insurance. Customers can increase their excess amounts with the purchase of an excess insurance policy knowing that they have offset the financial risk by obtaining a reasonably priced excess insurance policy.
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