Auto insurance excess payment - Will it lower my premiums?

by Guest » Mon Mar 08, 2010 10:01 am
Guest

What's an excess payment on my auto insurance? It says an excess payment would help save my premiums. How does it work?

Total Comments: 5

Posted: Tue Mar 09, 2010 09:05 am Post Subject:

Remember, that an excess payment is nothing but a stipulated amount that you need to pay every time you use your insurance to get your car repaired. You're supposed to make such payments directly to the garage wherein your car gets repaired, while taking it back with you. The "excess" (as mentioned in your policy) will be deducted out of the settlement if your car is written-off.

Posted: Wed Mar 10, 2010 09:46 am Post Subject:

Once the other party's insurer agrees on the accident being the other party's fault, then they'd probably reimburse this "excess payment" amount to you. I'm not sure of what will happen when the other party is not insured. Let's wait for the seniors to comment in this regard.

Posted: Thu Mar 11, 2010 08:58 am Post Subject:

Well, when it comes to auto insurance excess, I remember there's something called a 'compulsory excess' which is fixed. In addition to this, a driver may choose to add a 'voluntary excess' to his policy.

Posted: Fri Mar 12, 2010 06:35 am Post Subject:

It's while signing up that you'd agree to pay this 'voluntary excess' in addition to your compulsory excess in the event you file a claim. This agreement to pay a higher excess would certainly lower your insurer's risks towards covering you. Your carrier will most likely offer you a lesser premium in return.

Posted: Sat Mar 13, 2010 04:15 am Post Subject:

An excess payment is quite a common thing when it comes to car repairs at the garage. They won't release your car till you've paid for it. Once you get your car back, get the excess payment receipt too. It could be useful while filing a claim against a third party.

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