WHAT IS CAR INSURANCE EXCESS?

At the time of car insurance, it is better to consider the actual excess cost of insurance. Sometimes, low insurance seems too high because of extra charges. You might save yourself from the nasty surprise when you decide everything before you sign the contract.

Usually, car insurance excess is the actual cost that you wanted to contribute at the time of claiming an accident. In the case of a car accident, the insurance company will be able to pay the decided repair cost. For example, if the car cost damages is £1,250, the insurance company will be able to pay only £1,000, which means you have to pay £250 excess amount.

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Three types of car insurance excess:​

1. Compulsory excess

You might understand from its name that this kind of excess is non-negotiable by the person who insures their car. The insurance company wants you to pay the minimum amount at the time of accident or vehicle repair. The compulsory excess depends on your driving experience, age, your car type or any previous insurance history.

The reason behind imposing the compulsory excess is to stop minor claims like a scratch or small dents. The chance of more claims arises when there is no minimum amount to pay; as a result, the insurance premium will rock up.

2. Voluntary excess:

It's an amount that you are liable to pay toward the claim cost - at the time of paying compulsory excess, for instance, you consider to pay voluntary excess of £200, and your compulsory excess is £150 then you have to pay a total of £350 when you claim for repairs. Whereas, your insurance company will handle the matter by the rest.

3.​ ​Windscreen excess

A reduced excess amount that you have to pay for the windscreen excess repair or several damages. It comes in the insurer's duty to get the windscreen repaired before it hazards or cracks completely, so the chance of reducing excess is liable at the time of car repair.

Why do you need to pay for Voluntary excess?

It can be counter-intuitive for the insurer to pay the excess cost, but if you look at its long-term benefit then it could be cheaper for you. In case of rare claims, you can enhance your voluntary excess and get reduction in annual insurance premium cost. The reason behind this is, you are carefully focusing on your driving, and you rarely pay the voluntary amount.

The overall calculation observes that you have to pay less if you are expected to have fewer accidents and make fewer claims. In case, car insurance excess is high, at this point, an insurer has to pay a significant repair cost.

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Wrapping up​:

Any excess that you claim is directly paid to the garage rather than in your hand. You can only reclaim your excess when Insurance company properly waived the excess. Some insurers allow for extra coverage so that you won't have to pay any claim excess. Keep in mind, the insurance company only deals with severe and costly claims by imposing the compulsory excess.