March 13, 2020 • Car Insurance
Increase your Excess on your Motor Insurance
Increasing your excess means that you lower the amount an insurer will have to pay towards your claim, so you get a lower premium as a result.
Often times people see a higher excess as one of the most effective ways to save on insurance costs.
An excess is a contribution you are required to pay towards a claim you make on your car insurance policy. It’s a way of you accepting a small portion of the risk yourself.
Once the excess has been settled, your insurance provider will then pay the remaining expenses up to the limit of cover. An insurer may have many types of excesses that can apply in different situations or apply concurrently.
Insurance companies can reduce your premium when you increase your excess because this shifts some of the risk from the insurer back to you.
Essentially, when your excess is increased, it saves insurers from having to pay out numerous small claims.
The excess will vary depending on your car, the age and experience of the drivers on your policy.