Deano asked in Business & FinanceInsurance · 1 decade ago

What is "Excess" in insurance?

I crashed into the side of somebody 2day, and was wondering if i will have to pay anything for my insurance company to pay out, i heard something about an excess, what is that? I pay monthly and its my second year of driving if this changes anything, thanks ahead (it was also my fault :( )

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  • 1 decade ago
    Favourite answer

    An excess is a payment you have to make if you decide to claim on your policy. If you claim on your policy your insurance company will be paying you out, so basically it's a way of them paying a little less and keeping their costs down.

    An excess can vary and can be different if you are making a windscreen or theft claim.

    If your vehicle is repairable you will have to pay the excess when you collect your repaired car from the garage. If it is a write off, your insurers will value you car and deduct your excess from the offer they make you.

    The only way an excess is not payable is if you have a non fault claim and claim through the at fault party's insurance company.

    EDIT - The above answerer is mostly inaccurate and is only seen on Motor TRADE policies. If someone else makes a claim on your policy because you are at fault, you do not have to give THEM your excess money. If you do not make a claim on your policy you do not have to pay an excess. This is the case with standard motor policies.

    EDIT AGAIN: The guy below says that your premium will go up when you renew. This only happens if you lose your no claims. This will happen if your insurance company pay out and you don't have no claims bonus protection.

    Source(s): Work for an insurance company.
  • 4 years ago

    Insurance Excess

  • 4 years ago

    What Is Excess Insurance

  • 6 years ago

    Excess is the amount payable in the event of an accident. If you have a vehicle insured for $10,000 and you have an at fault accident your excess might be $300 depending on the terms of your policy. You have to pay the $300 excess to get your car fixed or replaced depending on the damage.

    You also have the opportunity to purchase 'excess cover' from insurance companies which will protect you from paying any excess.

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  • 1 decade ago

    An excess is the amount you agree to pay before the insurance company put their hands in their pocket.

    say you cause £200 of damage to someone's motor and have a £100 excess, you pay the first £100 to the other driver and the insurance company pay the next £100.

    the higher the excess you agree to the lower your premiums will be.

    Source(s): Ex insurance consultant.
  • 4 years ago

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    RE :What is "Excess" in insurance?

    I crashed into the side of somebody 2day, and was wondering if i will have to pay anything for my insurance company to pay out, i heard something about an excess, what is that? I pay monthly and its my second year of driving if this changes anything, thanks ahead (it was also my fault :( )

    2 following 5 answers

  • Anonymous
    5 years ago

    This Site Might Help You.

    RE:

    What is "Excess" in insurance?

    I crashed into the side of somebody 2day, and was wondering if i will have to pay anything for my insurance company to pay out, i heard something about an excess, what is that? I pay monthly and its my second year of driving if this changes anything, thanks ahead (it was also my fault :( )

    Source(s): quot excess quot insurance: https://shortly.im/bkuGZ
  • RAY
    Lv 5
    1 decade ago

    Red Cat is correct, you only pay an excess when you claim for damage or loss to your vehicle, not damage to someone's else's.

    It makes no difference if you are paying monthly (as long as your payments are up to date of course) nor if you've been driving 2 years, 20 years or 2 minutes.

  • 1 decade ago

    Check your policy document.

    It will say Excess of £100 or £200 etc.

    This is the amount you will have to pay towards the cost of the claim.

    The cost of your insurance will also go up when you come to renew it.

  • Anonymous
    4 years ago

    I don't need to pay for insurance, I Pray for insurance. I also don't believe all these weather disasters are acts of God. You know, Satan and his demons are still in the Heavens. That is the 1st and 2nd Heaven,but not where God resides. Satan is known as the prince and power of the air. They are powerful and can reek havoc on the Earth

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