IS MOTOR INSURANCE EXCESS GOOD?
Motor insurance excess is an amount of money you must pay towards any claim you make on your motor insurance policy. It is the first part of the claim you must pay, before the insurance company pays the remainder of the claim.
Motor insurance excess is a way for insurance companies to reduce their risk. The higher the excess, the lower the risk for the insurer, and the lower the premium for the policy holder.
When taking out motor insurance, you will be given the option to choose an excess. The higher the excess, the lower the premium. However, you should think carefully before selecting a high excess as it may mean you have to pay for more of the cost of a claim.
When making a claim on your motor insurance, you must pay the excess first. This is usually taken from the total liability of the insurance company. Once this is done, the insurance company will cover the remaining cost of the claim.
Often when taking out motor insurance, you will be given the option to buy back excess. This is an extra cover that can help you if you have to pay a large excess. If you experience a loss, you can claim back the excess you have paid up to a certain amount.