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Excess Insurance

The words 'excess' and 'insurance' commonly appear together but they usually indicate the amount you have to pay towards costs in the event of an accident or claim on your insurance. 

Recently, however, more and more people are choosing to take out a policy known specifically as 'Excess Insurance' which is designed to reimburse them this upfront excess payment, should they need to claim.   

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What is an insurance excess?

When you take out your car insurance or other insurances, your insurer usually applies a compulsory excess or in the case of car hire, a 'collision damage waiver'. This is the minimum amount the insurer expects you to pay in the event of a claim being necessary. You can choose to voluntarily increase this amount to reduce the cost of your premium but if you end up needing to make a claim, this larger amount must be found by you.

Why have excess insurance?

This form of insurance is a complementary policy you can choose to take alongside your policy or policies to cover you up to the level of this excess. Should you need to claim against your primary insurance and pay an excess, or have to pay a collision damage waiver, then this insurance will reimburse you up to the agreed limit. As the costs of excess insurance can be much lower than the cost of the total excess, many people find this insurance a prudent choice. 

What does it cover?

Different insurers offer to cover different types of excesses and at different levels so do always check the terms and conditions of what's on offer. Some only cover car-hire or car insurance excesses, others will cover different kinds of common insurance excesses such as home, travel, and pet. Some excess policies only cover one excess at a time; these are usually known as single policy and others offer lifestyle policies that will cover multiple excesses. 

That is why it can be best to do some research before obtaining an excess insurance quote using a specialist such as LycaInsure. Not only will you know that you're getting the best possible price, but you will also be certain as to exactly what is covered whereas some comparison sites may not be comparing like-for-like cover. Here at Lyca Insure, we can tailor your excess cover to suit your needs and offer you a competitive price to match. 

How does it work?

Once you have your main insurance in place and know the amount you will have to pay for the compulsory and voluntary excess (or excesses if taking out a lifestyle policy) then you can set up your excess insurance. You can choose to be insured for the full amount you'd have to pay out to cover your excess, or part of it. Remember; the higher the amount covered, the more the premium will cost. 

Then if you have to make a claim on your main insurance, you simply pay your excess to your insurer then submit proof of payment to claim it back from the excess insurance provider. It couldn't be simpler.