Excesses - You probably hear the word ‘excess’ bounded around a lot when discussing car insurance.
An excess is a determined amount that is initially paid by the insured (yourself) in the event of a fault claim before the insurer will pay out. There are 2 types, compulsory and voluntary. Compulsory excess is set by the insurer, and can relate to age and/or driving experience.
Compulsory excess is normally broken into age brackets of normally 17 to 20, 21 to 24, and 25 and over. The older you get, the lower the compulsory excess should be.
Other things can influence compulsory excess, such as modifications, and if the vehicle is imported.
Voluntary excess is determined by the client, and can reduce your premium if increased. This is always added to the compulsory excess to create the total you would pay in the event of a claim that was your fault – so always ask yourself if you can afford it!
In the event of an accident that wasn’t your fault then normally the other party’s insurer will pay your excesses. If there is a dispute in regards to the claim, or the other party is unobtainable, you may be required to pay your excess before repair work can be done.
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