How to Select Car Insurance Excess Cover

| December 27, 2012
Car Insurance Excess Cover

Car Insurance Excess Cover

When you go for a car insurance, your agents enquire you about how much voluntarily excess you are ready to pay at the time of making a claim. If you are involved in a traffic accident or your car has been stolen, making a claim on your insurance can be very painful. As a claim not only holds a long term impact on the premium, but also you are required to pay the excess amount for which you have agreed while signing up for the policy. And, opting for a higher excess in exchange for cheap cover, can be quite expensive.

Thus, if you are scared of making a claim and risking your hundred dollars at stake as your insurance, you can rather go for a car insurance cover which gives the excess amount on your behalf at the time of claim. One should find the best rates of car insurance excess cover, which is suitable for him. Whatever your total amount is, it is not negotiable. You will have to pay the entire amount at the time of making a claim. For less experience drivers or probably new comers, who choose to go for high premium installments along with high excess cover, this could get quite expensive.

Car insurance excess cover works along with your standard car insurance policy. You pay for the excess insurance cover with a mutual agreement that it will be paid on your behalf, if you make a claim up to a pre-decided extent. It is a fact, the greater the sum of money of excess cover you wish to pay, the greater will be your excess insurance premium.

In case, you met with an accident or your vehicle is stolen, it gets quite important to make a claim. You are required to pay the excess amount along with the normal insurance and then compensate your excess amount from the company which has provided you with the car insurance excess cover.

Different Types of Car Insurance Excess Cover

Car insurance excess cover is of two types: Single and Lifestyle.

Single: As the name suggests, the single policy cover the excess policy amount on just one kind of insurance such as your car insurance excess cover.
Lifestyle excess insurance cover: It covers the excess amount on your travel, home, medical, car and pet insurance policy.

Need of an excess insurance

If you think, you will have to struggle a lot to find sufficient money for your car insurance excess cover in the event of making a claim then this is the right insurance for you. You need to understand that you will have to pay excess insurance premium along with your regular car insurance premium. One should always check out what the cover will eventually pay out and what it won’t pay. This will reduce all the confusion and trouble and you can go for the right insurance as per your need.

How to Select Car Insurance Excess Cover


Category: Insurance

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