Excess
Friday, 07 Apr 2006 00:00
The excess is the amount a policyholder will have to pay as a result of making a claim on an insurance policy.
For example, a policyholder may be required to pay the first £75 of any claim on their home insurance. This means that if a leak causes £300 of damage, the policyholder would pay £75 and the insurance company would pay £225.
In the case of car insurance, if an accident is proven to be the fault of a driver, then their insurance company will reimburse the excess paid by the other involved parties.
Taking an insurance policy with a larger policy excess can save money on car insurance premiums.