Why you might want excess car insurance

Just like many a motorist, you may diligently compare insurance quotes each year to ensure that the price you are paying remains competitive. There may be one aspect of any motor policy, however, that goes largely unnoticed – the excess.

A reappraisal of the excess you accept – and pay in the event of a claim – may have a significant bearing on the overall cost of your motor insurance:

  • a typical motor policy is likely to incorporate a so-called compulsory excess – you are required to accept that you foot the bill for the first part of any claim, up to the amount of the amount agreed;
  • essentially, this represents your share of the risk against loss or damage to the car – if your insurer agrees to settle any claim you may make, this is the amount that you are required to contribute;
  • because that amount may assume quite significant proportions, you may want to consider putting in place an entirely separate, supplementary, but standalone insurance against your liability for any such excess;
  • this kind of top-up cover is readily available from specialist providers and operates in an eminently straight forward fashion – in the event of a claim on your motor insurance, you simply pay the required excess, but immediately seek compensation of that amount from the excess insurance provider;
  • cover against any compulsory excess, however, is not the only benefit of this type of insurance;
  • when conducting your review of the cost of motor insurance, you are likely to have taken into account the discounts invariably available if you agree to an additional, “voluntary” access – that is, if you agree to accept a greater share of the risk in protecting your vehicle against loss or damage;
  • in return for such an agreement, your insurer typically offers significantly reduced premiums – your share of the risk is increased and the maximum liability of the insurer is correspondingly reduced;
  • if you have taken the precaution of arranging a separate excess car insurance policy, therefore, you may feel entirely confident in agreeing to take on such an increased voluntary excess – not only to secure reduced premiums on the underlying cover, but also secure in the knowledge that any level of excess is already safely covered.

By insuring your exposure to an increased excess in this way, therefore, you may enjoy not only the freedom from needing to foot the bill for your contribution to the settlement of any claim but also reap the rewards of lower premiums for your motor insurance.