Excess
Excess is the fixed contribution the policy holder must make payment each time your car is repaired through your no deposit insurance policy. Traditionally the payment is made to the garage on completion of the work. If the cost of the work outweighs the value of the car the car can be considered a write off. In this case the excess will be deducted from the settlement they offer you. The same applies to no deposit insurance.
The excess can be claimed against the other persons insurance if the policy is deemed as their fault. In this case you can reclaim your excess If the other driver is uninsured, a policy’s minimum limits include coverage for the uninsured/underinsured motorist(s) at fault.
Compulsory excess
A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.
Altering both the excess and can affect your premium. If you do want to save money on your policy you can increase the excess. If you take a no deposit insurance policy you can soften the blow of these costs.
A consumer can offer to pay a higher excess than that set out by the compulsory excess. The amount In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium. This will reduce the monthly rate of your no deposit insurance policy.
