How Excess Cover Can Save You Money?

Any prospect of saving money on the price you pay for your insurance, therefore, is likely to be welcome. Excess protection insurance – from a specialist provider such as ourselves here at Bettersafe – may help you to do just that. How is that so?

Spend To Save

It may seem counter-intuitive to buy additional insurance in order to save money on insurance – but that is what excess cover may do.

To understand how it may do that, it might help to give a thought to the way in which excesses typically work.

Excess – Compulsory & Voluntary

An excess effectively represents an uninsured risk – an insurer accepts responsibility for indemnifying the insured against the cost of any loss or damage less the amount of the excess, which remains the insured’s responsibility to pay.

Many general insurance policies carry a compulsory excess – most notably the relatively high excess attached to motor policies for young or inexperienced drivers.

The existence of such an excess enables the insurer to make the cost of premiums more affordable – and, by the way, also discourages the submission of small or low-value claims.

Following the same principle, insurers also offer the option for you to accept an additional voluntary excess, thereby extending your uninsured risks and gaining a reduction in insurance premiums into the bargain.

Although the principle of insurance excesses may help to secure savings in the ongoing cost of insurance premiums, therefore, in the event of a claim, you might face a potentially steep bill for the cost of the excess.

Excess Protection

Excess protection has the ability to save you money since any excess you pay is immediately reimbursed – or with our private car excess insurance, paid directly to a repairer, so that you never need to pay the excess amount.

But excess insurance may also result in your saving still further money.

If any level of excess may be protected simply by payment of the appropriate premium, you might feel confident in accepting any amount of excess.

In other words, therefore you may have the opportunity of accepting the maximum voluntary excess - on offer in order to gain the maximum discount on the cost of your insurance premiums.

Excess cover may have the immediate attraction, therefore, of relieving you of any need to pay an excess contribution to your insurance claim. But it may save you even more money by allowing you to accept a higher level of voluntary excess on the underlying insurance in order to gain valuable discounts on the cost of your main premiums.