What is an excess anyway? Why are you responsible for that small sum of cash paid upfront when you claim from your comprehensive insurance policy? The answer: it’s how your insurer shares a small portion of the responsibility of the claim with you. But that isn’t where it ends, there are different types of excess structures that you can choose from, so we’re going to break it down for you.
The basic excess is the first and standard excess assigned to any comprehensive vehicle policy. This excess is also commonly known as a fixed excess, which is the fixed amount that will be paid in the event of an insurance claim. But, there are also options, such as:
Every now and then, insurance companies have additional excesses added onto their comprehensive vehicle policy. These are occasionally called penalty excesses, because they are added in the event of a claim under the following circumstances:
The excess is the amount that you will pay in the event of a claim, irrespective of who is at fault of the accident. Make sure you know what excess you’re liable for at claim stage to avoid any nasty surprises later on.