Car Excess Insurance
Car excess insurance is any auto cover policy that requires an excess payment from the insured under certain, stipulated conditions. An excess is paid by the insured before the insurance company pays out any benefits. Most car excess insurance policies design excess payments in one of three ways: The insured pays up to a maximum amount per year, in which all payment of repairs from accidents may be out-of-pocket until that excess amount has been paid. The insured pays a smaller amount per instance before benefits are paid by the insurance provider, or the insured pays a pre-determined percentage of a repair bill per instance before the carrier remits their share. Auto insurance providers accept a higher excess from the drivers, but whilst it’s possible, they rarely reconfigure their excess structure, so be sure to purchase a policy with your preferred excess payment design.
Are You a Dangerous Driver?
Once you opt for an excess pattern that suits your budget, whether in the cheap auto cover policy you first found or in another one, your actual initial excess amount or percentage is often determined by the carrier according to your driving history and accident record. Many of the leading providers in the UK require high-risk motorists pay a high excess before the insurance remits the balance because of the high probability of the accident in the first place. However, increasing your excess does reduce your regular premiums, so don’t believe by voluntarily increasing your share that you are confessing to be a bad driver. You’re simply saving the insurance company liability costs, and they, in turn, reward you with lower premiums.
Typically, high-risk drivers with higher excesses by the carrier’s requirement are new drivers, convicted motorists and drivers of any age with excessive penalty points on their licences and a long history of accidents, whether any were catastrophic or not. You aren’t required to accept any car excess insurance arrangement: You are free to look for better terms with another company. Source online quotes from a speciality auto cover company, for example. Terms, benefits and prices might be better in addition to more lenient excess arrangements. From a suitable excess point, you can increase that amount to lower your auto cover premiums if you wish.
If your driving, licence and accident histories are all excellent, you probably won’t be considered a high-risk driver unless you are a young motorist or a senior motorist. If you are, indeed, considered an experienced and safe driver, you have considerably more leeway in your car excess insurance options, even including opting for no excess at all if you wish.
However, remember that increasing an excess amount does lower your car insurance premiums. In those instances, maintain your safe driving record, and not only have you not had to pay that excess amount, you paid less in monthly premiums. Add a no claims bonus and your regular vehicle safety and security discounts, and your car insurance cover costs are minimal and dropping again each year.
Should I Get One?
If the auto insurance provider does not require you to pay an excess, whether or not you opt for one is your decision: For every claim you don’t file, you save an excess payment, and you preserve your good driving and accident history. Therefore, if you sincerely believe that you have little chance of being at fault in an accident, take the car excess insurance and enjoy the lower monthly premiums. On the other hand, if you would rather have the higher premiums but without the worry of a cash outlay at what could be an inopportune time, choose the no-excess policy with the higher premiums. Know, however, that you can’t increase your excess to lower your regular payments if you have no excess at all. If you have a no-excess car insurance policy, and you have an accident, the insurance policy may stipulate an excess after that accident.
Be sure to weigh all the advantages and disadvantages to car excess insurance or a no-excess policy. Know the stipulations of how much or how often you pay an excess and when, if ever, an excess does start anyway. You might simply pay a higher premium after an at-fault accident, but it’s better to know beforehand all payment-related terms and conditions. Don’t buy any long-term cover whose terms you don’t understand or cannot afford. There are too many auto mobile insurers who want your business to settle for an unsatisfactory policy before investigating every option you have. Compare cover rates. Compare bonuses and discounts. Compare car excess insurance structure and frequency. Compare auto insurance companies to ensure you deal with a provider with a good reputation and who is authorised by the Financial Services Authority to issue a car excess insurance policy or a no-excess cover policy.