Excess Insurance Policy: What The Policy Covers

What Is Excess Insurance Policy?

Excess insurance, also recognised as excess waiver insurance and car hire excess insurance, is an elective insurance policy that secures you against any excess costs you may acquire in an occasion where your hire car is damaged or stolen.

How Does Excess Insurance Work?

It is an insurance policy that secures coverage for excess costs when you need to claim on another type of insurance. For instance, if your car insurance excess amounts to £300, you need to pay this amount before you can claim on your policy while excess insurance allows you to get this amount paid as a chargeback.

What Are The Types Of Excess Insurance?

There are mainly two types of excess insurance, these are:

A single policy which coverage includes the excess on one insurance policy, such as your car insurance.

Lifestyle policy which coverage includes the excess on several different policies. For instance, your car, travel and pet insurance.

The Pros and Cons Of Excess Insurance

Pros

tickReduces the cost of claiming

tickLow monthly premium

Cons

tickYou will need to claim twice

tickMay cost more than you save

What Does The Policy Covers?

You can cover the required excess established by your insurer, and any optional excess you prefer to reduce your premium. You can cover a variety of policies, such as follows:

tickCar insurance

tickHome insurance

tickCar hire insurance

tickPet insurance

tickVan insurance

tickMotorbike insurance

tickTravel insurance

You agree on a cover limit with your excess insurance provider before you take out cover. This customarily varies from £250 to £750.

What Is NOT Covered In Excess Insurance?

It differs among policies, however, the principal exclusions of excess insurance include:

tickExcesses that is beyond your policy limit

tickClaims not related by your main policy

tickEvents that occurred before the commencement of your policy

tickClaims where you have not reached the terms of your hire contract

tickExcesses that can be claimed from a third party when they are at fault for instance

How Much It Cost?

It differs between insurers, though some excess policies require as small as £2 a month.
You must acknowledge the expense of the excess on the policy or policies you desire to cover before getting out an excess insurance policy, to determine if it is meriting to check how much it will cost you.

Do I Need To Secure One?

You should recognise excess insurance if you are renting a car. Most hire companies let you pay a £500-£1,000 excess when you damage the car, and excess insurance could cover this cost.

Moreover, for the additional types of insurance, assess whether the value of your excess justifies the cost of a policy. If your excess is smaller than the amount of excess insurance, it is not meriting to favour it.