Insurance answer
What does an insurance excess do, and can a higher excess reduce premiums?
An excess is the amount the policyholder pays toward a claim covered by the policy. Some insurers allow a higher excess in exchange for a lower premium.
Answer
A lower premium can mean taking more of the claim cost yourself. Check when the excess applies and whether it is affordable if you need to claim.
The excess changes who pays first
If the policy covers the claim, the excess is the amount that comes from the policyholder before or alongside insurer payment, depending on the policy wording.
Premium trade-offs need care
A higher excess may reduce premiums, but it also changes the cost you may face at claim time.
What to check next
- The right excess level depends on personal circumstances and policy wording.
- Excess rules differ by policy.
- Check the policy schedule and wording.
Sources for this answer
Public information is explained in plain English, with links back to the official or public sources used for this answer.
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