What is Excess? (Motor Insurance)

 

The term “Excess” in Motor Insurance relates to the 1st part of any claim that the Insurer will not pay. This amount has to be paid by the Insured.

“Excess” may be removed/reduced if the Insured proposes to pay a higher premium.

Reasons for “Excess”:

- Making the Insured liable for the excess payment, instills a greater sense of care on the part of the Insured

- Rather than terminating the policies of Insureds with bad claim experience, higher excess may be offered