In short, excess in car insurance is the total sum of money you have to pay if you make a claim on your insurance. There are two types of excess that you should know about: compulsory and voluntary.
What are the Different Types of Excess?
1) Compulsory Excess
This is excess that is set by your insurer. Your mandatory car insurance excess, like your vehicle insurance premium, is normally based on a variety of different pieces of information about you, including your age, car and postcode.
If you drive a luxurious or high-performance vehicle, for example, you may be subject to an additional excess charge. Or, if you are under the age of 25, you may be charged an additional young driver excess since insurance companies see you as a bigger risk.
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People who reside in locations where a high number of collisions, thefts and other claims have occurred. They will often pay a higher premium for their car insurance excess.
2) Voluntary Excess
As the name suggests, you have the option of choosing your own voluntary excess and you are not required to set one at all. However, the higher it is set, the less expensive your car insurance premium will be in the long run.
Even though your premium is lowered by having a larger voluntary excess, you should ensure you decide on an amount that you can afford to pay if you ever need to make a claim.
Although there are two types of excess, the total excess sum consists of both compulsory and voluntary excess, you would have to combine the two excess costs together and pay that total sum towards the cost of a claim you put in for. When making a claim, it is the total excess that is to be paid. The excess is usually paid for if the claim is made for an accident, injury or any other damage that was your fault.
When do You Pay Excess?
When you file a claim on your own insurance, you have to pay car insurance excess. This is the only time you pay excess. If you make a claim on someone else’s insurance or someone else makes a claim on your insurance. You don’t have to pay the excess.
So, as established, when you submit a claim for damage to your automobile on your own insurance. You must pay a car insurance excess, but you do not have to pay it all at once.
Your insurer deducts the excess from your compensation – therefore you won’t be able to pay your excess in instalments. However, this still means that you will not send a large sum of money to your insurance company.
What if the Accident Wasn’t Your Fault?
You will still have to pay excess car insurance if the accident was not your fault. However, if you’re determined to not be at fault for the incident. Your insurance company should be able to recover your excess from the other driver’s insurance company, and it should be reimbursed to you.