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What is car excess insurance and how does It work?

car excess Insurance

What is car excess insurance?

Many of us thinking about car excess insurance but what is the car excess insurance. The car excess insurance is the amount that is required to you when you make a claim on your policy.

For instance, if your policy has a $500 excess and you make a claim for $3,000 harm to your vehicle, you’ll cover the first $500 of the repair costs and the insurer will foot the bill for the remaining $2,500.

Be that as it may, the amount of excess payable differs relying upon various elements.  Not only does the excess differ according to the policy you select, but you can also adjust your excess higher or lower to vary your premium amount. In addition, specific drivers such as those under 25 years of age, may be required to pay a higher excess amount.


Why do insurers include an excess on their policies?
The reason for car excess insurance is to reduce the number of small claims insurers is required to pay out. In the event that the excess didn't exist, we'd all have the claims for each minor little knock, scratch, and dent that our cars suffer. 

While this may appear to be a great thought superficially, in reality, it would cause the cost of car insurance policies to skyrocket,  and the premiums could leave a lot greater dent in your bank balance.

Yet, by getting policyholders to consent to pay the initial segment of each claim themselves, insurers are able to prevent myriad claims for minor repairs and therefore keep car insurance premiums down. This thus implies you can fall back on car insurance in those circumstances where you truly need the financial protection it gives.

How do I pay an excess?
How you pay your car excess insurance  depends on the insurer and the nature of your claim. When you lodge a claim, your insurance company will advise you whether the excess:
Will be deducted from any amount paid to you;
Must be paid to the insurer; or
Must be paid to the vehicle repairer when you collect your car
 
What types of car excess insurance are there?
Standard driver excess.
Voluntary excess
Age excess
Inexperienced driver excess
Non-nominated driver excess
Specific driver excess
Glass/windscreen excess
When do I not have to pay an excess?
The conditions when you don't need to pay a car insurance excess generally depend on the insurer, for the most part, rely upon the guarantor and your individual policy. If your insurer agrees to waive all excesses when you pay an additional premium, at that point, you won't need to stress over contributing towards the expense of the claim. Simply remember that the extra premium you'll be required to pay will probably be fairly substantial.









Our team's hands on experience in bespoke insurance solutions and claim handling makes us #1 preferred choice with businesses and individuals NZ wide.