The Benefit Or Otherwise Of An Excess On Your Car Insurance

Here in the UK, many people are struggling to meet their household bills so any way that they can reduce their expenditure is to be welcomed. One of the ways of doing this is in connection with car insurance excesses.

The excess that you pay will impact on your car insurance premium

Your car insurance policy will have an excess on the policy that means that you will be responsible for paying the first part of any car insurance claim that you make on your policy. This applies whether it is in respect of an accident or if the car has been stolen.

If you are involved in an accident that is not your fault then it is possible that your insurer may be able to reclaim the excess back that you have paid from the third party and refund it to you.

The benefit of having an excess on the policy is that it will reduce your premium. You will usually find that most car insurance companies allow you to vary the excess that you can pay. So, the higher the excess the lower your premium will be and, of course, if the reverse were the case your premium would be higher if you had a lower excess.

The difficult decision that you have is in deciding the level of excess to select because, if you do need to claim, the higher the excess figure that you chose then the larger the amount that you will need to find in one go. In the current economic climate this may place some people in a difficult situation.

So, when you are shopping around for your car insurance at about the renewal date of your policy, it is worth looking at various quotes using different levels of excess. In doing so it is important that you take your time to make sure that you choose the best deal that you feel that you can obtain at the time.