What is an excess and what is excess protection?
An excess is the amount of money the insurer requires you to pay towards the cost of your claim. It is standard to have a compulsory excess but quite often it is possible to opt for a voluntary excess on top to obtain a more competitive premium.
The difference between the two is fairly simple. The compulsory excess is set by the insurer and is what is required as a minimum. A voluntary excess is something that you choose that is in addition to your compulsory excess. Choosing a higher excess should reduce your premium but of course it will also hit you in the pocket should you claim.
On the other hand a solution to counter high excess payments is to purchase an excess protection policy which will cover you should you need to pay an excess. As standard you buy an aggregate limit, for example £1,000, and once you hit that limit or you hit 12 months the coverage stops, unless purchased again. As standard with this kind of policy you are required to pay the excess initially but then once you have the receipt and the claim is settled you will have your excess refunded by the excess protection insurer.
At Edison Ives we have excess protection policies that can be used against business, fleet and commercial vehicles. Contact Us now to discuss further. Why be out of pocket for and excess payment again?