An excess is the amount you must pay when you make a claim on your policy.
In other words, it’s the amount you agree to contribute towards the cost of a claim, with the insurer covering the remaining amount.
So if your vehicle is damaged and the cost of repair is agreed at £1,250, then if you had no excess the amount the insurer would pay would be £1,250.
However if your policy had a £500 excess, the insurer would only pay £750 as you’d have to pay the remaining £500 yourself.
Category:
The Essentials