Choosing The Excess On Your Vehicle Cover

By Author: Norris Rios
Total Articles: 572
Comment this article

Arranging car insurance isn't always an easy process, as there are many things that you have to think about and take into consideration when you are sorting out your cover. Of course, one of the things that most drivers look at when they are arranging their car insurance cover is the cost of the cover, particularly in the current financial climate where everyone wants to try and save money on the cost of their goods and services, which includes their car insurance.

There are a number of different things that can push up the cost of your car insurance cover and also things that can bring the cost of your car insurance cover down. For many people it is important to try and reduce the cost of cover as much as possible, as they are keen to keep their premiums as low as possible. However, for many other people it is worth paying a little extra on monthly premiums to enjoy greater peace of mind and additional financial protection over the longer term.

One of the things that can affect the amount that you end up paying for your car insurance cover is the amount of excess that you choose to pay in the event of a claim, ...
... which has to be pre-set when you take out the policy. The excess is basically the amount of money that you will pay from your own pocket should your vehicle be involved in an incident. If the cost of the repair is more than the excess the additional amount will come from the insurance. However, you will have to pay the excess amount before the insurance claim kicks in.

Some people who take out car insurance decide to choose a higher level of excess, which means that in the event of an incident involving their vehicle they would have to pay out a higher amount before the insurance kicked in and paid out. For example, if your excess was set at $300 and you had an accident where the cost of the repair would be $300 or less you would have to pay the full amount from your own pocket because that was the level of your excess. However, if the cost of the repair was $600 you would pay the first $300 from your pocket and the insurance would cover the remainder. The reasons why people choose a higher level of excess is to keep the insurance premiums down, as it is cheaper to go for a higher excess level because the risk of payouts for the insurance firm is reduced.