Excess Insurance

Excess Insurance

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Excess Insurance

In order to properly understand excess insurance, one needs to first understand what a voluntary excess is and how it works. When you take out a car insurance policy, you will generally agree to a certain amount as a voluntary excess. This is an amount that you have to pay out of pocket in order to make a claim, with the insurance company covering everything above your excess. For instance, if you have a voluntary excess of £200 and you make a claim for £1,000, then the insurance company will cover £800 after your initial excess payment.

This is something that all insurance companies require, so many people have countered by getting excess insurance. What is this and when should you consider it? Here is a little bit of advice on how to handle the issue of excess insurance seperate from your car insurance quotes.

What is excess coverage?

Cheap car insurance sometimes comes with a large excess, an excess policy is one that you take out in order to protect yourself against paying that high excess. When you file a claim and you have to pay that £200, the excess policy will reimburse you for the excess that you have paid. The limits for this type of insurance can vary, with some people taking out very large policies. Likewise, you can take out this type of insurance either when you first sign up for your car insurance policy or later down the road. It really doesn’t matter when you get this sort of coverage, as long as you have it before the time when you file a claim.

Excess coverage for one policy or all policies

Chances are that you have more than just a car insurance policy. Maybe you have van insurance, home insurance, bike insurance, or even pet insurance. A popular move of many people is to get an excess policy that will insure all of their voluntary excess payments. This will cover you in case you have to pay to file a car insurance claim, but it will serve a greater purpose than just that. Keep in mind that this insurance is more expensive, but it provides more protection, so it should be more expensive. You could also sign up for excess coverage for just one of your insurance policies depending upon your needs.

Why do people get this type of insurance?

One reason is if they have an incredibly high voluntary excess on one of their insurance policies. This is a type of insurance that will let them get that money back. There are lots of times when you will have to pay the voluntary excess even if you are not at fault in an accident. Having this sort of insurance is great because it nets you a check back for the cost of the excess payment.

Likewise, people use this sort of insurance because they often take out a high voluntary excess in hopes of getting a lower insurance policy. With this sort of plan, they are essentially shifting around the risk to different companies for the purposes of saving money. There are some times when this strategy can save you a lot of money, so it is worth looking into.

Shopping around for an excess policy

Just like when you compare car insurance, you should compare the market before you buy an excess policy. There are so many insurance companies out there and you can come away with a really nice deal if you will just do a comparison. Using the internet to get a bunch of different quotes is a good place to start, as this will give you a clear picture of what is out there on the market today.