The car insurance excess is the agreed upon amount your insurance company requires you to pay for any repairs that are being made to your vehicle due to a claim being filed.
Your insurance company will determine what your excess payment will be when you start your policy. The excess payments in most cases will be made directly to the garage or mechanic that is repairing the vehicle, the insurance will send the remaining amount due directly to them or send a check to you that you will need to bring to the garage.
When you file a claim where another motorist is responsible for the repairs done to your vehicle they may reimburse you the excess you had to pay or pay it their selves and deduct it from your settlement amount.
There are millions of motorists on the road that do not have insurance coverage or the policy they carry is not sufficient to meet the demands of the claim you file. It is illegal to operating a moving vehicle without insurance but it is not a crime to be underinsured as long as it meets the state requirements. If you are involved in an accident with a motorist who is either underinsured and uninsured your insurer may cover the costs if you have chosen that protection but you will still be required to pay the excess amount for any repairs.
More than 5% of drivers on the roads of UK are uninsured. The insurance companies offer protection but because they are at risk of having to cover these uninsured drivers for their faults it can raise the cost of insurance premiums.
The minimum excess that your insurance provider will accept for your policy is the compulsory excess. This amount will change from one driver to the next. The insurer will use your vehicle type, age, experience driving, as well as your driving record to determine your compulsory excess payment. The amount will vary from $50 to $500 or $1000 depending on your criteria and the insurers guidelines.
Voluntary excess is when you qualify for a lower amount but choose to increase it to lower your monthly premium. Your agent will be able to discuss with you the options for increasing your excess and who how it will affect your overall premium cost. You should keep the excess amount low enough that you can afford it easily but not so low that it raises your premium.
You need to realize that if you have your car in the garage getting repaired due to an insurance claim the garage will not be able to release the vehicle to you until they receive full payment for repairs. The insurance company will pay the sum they are supposed to but the final payment will normally be the excess amount of the policy. This is why it is extremely important to be able to afford the excess amount you agreed on so that you will be able to easily come up with it when needed.
Your insurance company will determine what your excess payment will be when you start your policy. The excess payments in most cases will be made directly to the garage or mechanic that is repairing the vehicle, the insurance will send the remaining amount due directly to them or send a check to you that you will need to bring to the garage.
When you file a claim where another motorist is responsible for the repairs done to your vehicle they may reimburse you the excess you had to pay or pay it their selves and deduct it from your settlement amount.
There are millions of motorists on the road that do not have insurance coverage or the policy they carry is not sufficient to meet the demands of the claim you file. It is illegal to operating a moving vehicle without insurance but it is not a crime to be underinsured as long as it meets the state requirements. If you are involved in an accident with a motorist who is either underinsured and uninsured your insurer may cover the costs if you have chosen that protection but you will still be required to pay the excess amount for any repairs.
More than 5% of drivers on the roads of UK are uninsured. The insurance companies offer protection but because they are at risk of having to cover these uninsured drivers for their faults it can raise the cost of insurance premiums.
The minimum excess that your insurance provider will accept for your policy is the compulsory excess. This amount will change from one driver to the next. The insurer will use your vehicle type, age, experience driving, as well as your driving record to determine your compulsory excess payment. The amount will vary from $50 to $500 or $1000 depending on your criteria and the insurers guidelines.
Voluntary excess is when you qualify for a lower amount but choose to increase it to lower your monthly premium. Your agent will be able to discuss with you the options for increasing your excess and who how it will affect your overall premium cost. You should keep the excess amount low enough that you can afford it easily but not so low that it raises your premium.
You need to realize that if you have your car in the garage getting repaired due to an insurance claim the garage will not be able to release the vehicle to you until they receive full payment for repairs. The insurance company will pay the sum they are supposed to but the final payment will normally be the excess amount of the policy. This is why it is extremely important to be able to afford the excess amount you agreed on so that you will be able to easily come up with it when needed.
About the Author:
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance Policies.
No comments:
Post a Comment