What is a Policy Excess?

Policy Excess applies to most insurance contracts, including car insurance, home insurance and travel insurance. It is the amount you agree to pay towards a claim. Suppose you are involved in a car accident and submit a claim for €4,000. If the policy excess is €200, the insurance company will pay €3,800 towards the claim, and you will contribute the remaining excess of €200.

So basically, it is the amount you pay towards the claim, and the insurance company will pay the balance up to a limit outlined in your policy document. The excess amount for car insurance in Ireland generally ranges from €250 to €1,000.

The higher the excess you choose, the lower your insurance premium. The lower the excess you choose, the higher your insurance premium. There are two types: compulsory and voluntary excess.

What is Compulsory Excess?

Compulsory excess is the amount that the insurer sets; this amount will depend on the age, make, model and condition of your vehicle.

What is Voluntary Excess?

Voluntary excess is the amount that you can choose to be added to your car insurance policy. It is an additional amount of excess you agree to pay on top of the compulsory excess in case of an insurance claim.

When do I have to pay the Policy Excess?

You will pay the excess on your policy in the event of a claim. This claim may be due to theft of your vehicle, fire damage to your car or if your car is a write-off. Generally, your excess will be taken from the total cost of the repairs to your vehicle. However, if the cost of repairing your car is less than the policy excess amount, you will not be able to claim on your insurance policy. Get a cheap motor insurance quote today or call 042 935 9090.