Insurance Ins and Outs

Car insurance excess is the sum of money you will have to come up with each time your car is being repaired due to a filed insurance claim. It is the additional amount that your insurer will not pay for the repairs to be completed.

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.

Every time you file a claim involving repair of damage to your vehicle that was the fault of another motorist the excess payment will be reimbursed to you or it may be deducted from any settlement you receive.

Too many drivers are on the road that have no insurance at all or coverage amounts that are insufficient to cover all your repairs or medical costs. It is illegal to drive while uninsured but this does not stop people from doing it. Your excess amount may not be able to be recovered if you are involved in an accident with a motorist who has insufficient insurance coverage. You can get protection from your insurer against underinsured or uninsured drivers and they will cover the costs that occur from the accident minus the excess payment originally agreed upon in your policy.

There are over 5% of drivers on the streets in the UK who are uninsured. The insurance companies provide protection but due to the fact they are at risk for paying for other drivers mishaps the insurance premiums continue to rise.

The compulsory excess is the minimum amount that your insurer will allow you to have on your policy. The amount will vary greatly depending on your driving record, the type of car you drive, age and even the amount of experience you have behind the wheel. If you have a clean driving record and many years experience behind the wheel you could pay as little as $50 in excess but if you are a new driver you could pay as much as $500 or $1000 in excess.

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 should understand that if you have your car in the garage being repaired for an insurance claim that the garage will not release the vehicle to you until full payment is received. The insurance company will pay the amount they are required but the final payment will generally be your excess amount. This is where it comes important to know that you can afford the excess amount you have agreed to when the time comes that you need to have it ready.

Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance Options.

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