Why Buy Car Excess Insurance?

Assuming all is well in that respect, very shortly afterwards it’s highly likely that your thought processes will turn to just how much this is going to cost you and perhaps you’ll breathe a mental sigh of relief that you are fully insured.

Similar thoughts might also occur in situations where your car has been stolen or destroyed by fire etc.

However, your peace of mind and tranquillity might be in for a rude shock when you see just how much is going to be deducted from your insurance provider’s settlement figure in order to take into account the excess on your motor policy.

Why Is The Money Going To Be Deducted?

If you examine your master motor policy, you will typically find that clearly highlighted within it is an amount of money described as being “the excess”. Occasionally, it will also be described as being the first part of any subsequent insurance claim.

What will happen is that, should you lodge a successful claim for an amount of money, the excess will be deducted from that amount before the balance is paid to you by your insurer.

You are not being singled out here. Excess is a very commonplace facility within the insurance industry, and it’s used to help keep down the total cost of claims paid by the insurance provider. That, in turn, enables them to keep their prices that bit lower to policyholders, in what is acknowledged to be an extremely competitive insurance marketplace.

So, if you have a total claim of £1,200 for car repairs and a £1,000 excess on your policy, then assuming your claim is accepted you should anticipate a settlement of only £200.

If The Thought Of That Is Appalling, You May Be Asking Yourself Just What Your Options Are To Deal With This

Once it has happened, if you have taken no steps beforehand to protect yourself then sadly the answer is - you have no options at all and will just need to pay up.

On the other hand, if you hold car excess insurance then you will be able to reclaim the amount of money you have been forced to pay by way of excess on your master motor policy.

Excess protection policies offer a cost-effective way of protecting your financial interests when they may be put at risk by the need for you to pay potentially large excess amounts on your master policy.

Of course, such cover can’t be retrospective. You can’t take out this sort of policy once you have already launched a claim on your motor insurance. The logic for that is based upon the well-established principle that insurance exists to help protect you against things that might happen in the future - not those that have already happened in the past.

So, if you would like to restore your peace of mind that your finances are really protected from the consequences of a problem with your motor vehicle, it might be time to find out more about excess protection insurance.