Car insurance excess is the sum of money you will have to come up with each time your car is being repaired due to a filed insurance claim. It is the additional amount that your insurer will not pay for the repairs to be completed.
Your insurance company will determine what your excess payment will be when you start your policy. The excess payments in most cases will be made directly to the garage or mechanic that is repairing the vehicle, the insurance will send the remaining amount due directly to them or send a check to you that you will need to bring to the garage.
When you file a claim where another motorist is responsible for the repairs done to your vehicle they may reimburse you the excess you had to pay or pay it their selves and deduct it from your settlement amount.
Millions of drivers are on the roadways with no insurance at all or they have coverage that is insufficient for covering all your repairs or medical expenses. Although it is illegal to operate a vehicle without insurance there are many people who still do it. The excess amount you have to pay may not be able to be reimbursed if you are involved in an accident with a driver with inadequate insurance coverage. Protection is offered from your insurer against underinsured or uninsured motorists any medical expenses or repairs to your vehicle not covered by the other driver will be covered by your insurer with the exception of the excess amount you owe.
It is difficult to determine how many people are actually driving without insurance but the risk is real and this creates a rise in the insurance premiums that the honest drivers have to pay.
The compulsory excess is the minimum amount that your insurer will allow you to have on your policy. The amount will vary greatly depending on your driving record, the type of car you drive, age and even the amount of experience you have behind the wheel. If you have a clean driving record and many years experience behind the wheel you could pay as little as $50 in excess but if you are a new driver you could pay as much as $500 or $1000 in excess.
Voluntary excess is when you qualify for a lower amount but choose to increase it to lower your monthly premium. Your agent will be able to discuss with you the options for increasing your excess and who how it will affect your overall premium cost. You should keep the excess amount low enough that you can afford it easily but not so low that it raises your premium.
You should understand that if you have your car in the garage being repaired for an insurance claim that the garage will not release the vehicle to you until full payment is received. The insurance company will pay the amount they are required but the final payment will generally be your excess amount. This is where it comes important to know that you can afford the excess amount you have agreed to when the time comes that you need to have it ready.
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