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Five reasons to take out excess insurance
Not sure why you need excess insurance for your car? This post outlines the benefits of excess insurance for all drivers.
07 May 2019
Excess insurance can be a great way to make sure that you’re not left out of pocket if you have to make a claim on your motor insurance, due to an accident, theft or damage.
All motor insurance policies have an excess, sometimes known as a deductible; so, if you need to make a claim, you have a sum of money to pay first, and the insurance pay-out will only cover the amount above this. For example, if your motor insurance excess is €500, you need to pay the first €500 of a claim that you make on the policy.
Excess insurance means that you can claim back the excess you pay out (up to the limit of your cover) so you aren’t left with a big bill that could delay you getting back on the road. In this article, we explain why all drivers could benefit from excess insurance.
You can recover your excess payment if you make a claim – even if you were at fault
When you take out excess insurance cover, it means that should you need to make a claim on your motor insurance policy, due to an accident, theft, fire or damage, you can reclaim the excess amount that you need to pay out. This applies whether or not you were at fault for the incident. As long as your motor insurance covers your vehicle for the incident, your excess insurance policy will enable you to claim back the excess amount.
Your excess insurance cover will have a limit, so you need to ensure that you take out the right policy level for your needs. For example, if your motor insurance excess is €500, you need to take out an excess insurance policy that covers you for at least up to €500.
Your compulsory and voluntary excess sums are included in the cover
Many motor insurance policies include both a compulsory and a voluntary excess amount.
The compulsory excess is set by your insurer and normally reflects the level of risk that they calculate of the likelihood you will make a claim. The higher the risk level, the higher the compulsory excess. They base this on a number of factors, which usually includes your age, level of driving experience, claim history and the vehicle you drive. Often new or inexperienced drivers, or those driving a very powerful vehicle, will have a higher compulsory excess than drivers with more experience who haven’t made a recent claim on their motor insurance. You cannot change the compulsory excess charged by your insurer.
The voluntary excess that many insurers offer will give you the opportunity to increase your excess, which will usually bring your motor insurance premium down, or to reduce your voluntary excess and see your premium rise.
Excess insurance covers both excess sums, as long as the combined amount is within your level of cover. For example, if your compulsory excess is €300 and your voluntary excess is another €300, you must have excess insurance covering up to at least €600 in order for you to reclaim the full €600 back.
You could get back on the road more quickly when you have excess insurance cover
If you don’t have excess insurance and you have to make a claim, the sum that you have to pay out can mean that you can’t afford to get back on the road straight away. If you need to save up to replace the excess sum that you have paid out in order to buy a replacement vehicle, or for the repairs to be carried out fully, it can mean you are off the road for as long as this takes.
With excess insurance, because you can claim back the excess amount you have paid out, you may be able to get a new or repaired car back on the road much more quickly, as you won’t need to wait and save up to replace the excess sum.
Your excess insurance cover will have a limit, so you need to ensure that you take out the right policy level for your needs.
Protect yourself in case of an incident with an uninsured or unidentified driver
If you’re involved in an accident and need to make a claim on your insurance, you will need to pay the excess first. If the accident was the fault of another driver, your motor insurer can sometimes claim back the excess from them as the claim progresses. However, if the other driver cannot be proven to be at fault, can’t be identified or if they were uninsured, it won’t be possible for your motor insurer to reclaim your excess, even if the accident wasn’t your fault at all.
With excess insurance, you can claim back the excess amount (up to your claim limit) even if the other driver is uninsured or cannot be traced. As long as your motor insurance covers your vehicle for the incident, you can reclaim your excess via your excess insurance policy.
Excess insurance offers peace of mind for private car owners and long-leasers
Whilst all insured drivers have an excess on their motor insurance policy, many people don’t really think about it until they have to make a claim. It’s often only then that they realise they need to find a sum of money to pay their excess amount before their motor insurance claim can be processed.
With excess insurance, the worry of having to come up with a lump sum to pay your motor insurance excess isn’t needed. Whether you own your car or have it on a lease or finance agreement, you can benefit from excess insurance and enjoy the peace of mind it offers.
If you want to know more about PSA’s Excess Insurance, you can get a quote for cover by clicking below
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PSA Insurance Solutions Ltd Reg No: C83206 is a limited liability company under Maltese Law, having its registered address at: MIB building 53 Abate Rigord Street Ta’ Xbiex Malta, Tel + 356 22 58 34 92. The company is enrolled to act as an insurance agent in terms of the Insurance Intermediaries Act, 2006 by the Malta Financial Services Authority (MFSA), Notabile Road, Attard BKR 3000, Malta.