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.
