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What Is Excess Insurance?

The excess is the amount you are to pay towards a car insurance claim you make on your policy. Excess insurance covers both the compulsory and voluntary excess.
 
When you submit a quote for motor insurance for any vehicle, along with a premium for the cover, your insurer will also include an excess amount that forms part of the policy. In the event of a claim on your motor insurance, any pay-out you receive will have this excess amount taken out; so, in effect, you pay the first part of the claim yourself. This excess usually has a set compulsory amount, which you can’t change, and a voluntary amount, which you can adjust yourself. The combined sum is your car insurance excess, and it can run into hundreds of euros.
 
Excess insurance is a separate policy that simply covers the excess you will have to pay if you make a claim.
 

You need to ensure that the excess insurance you have in place is enough to cover your motor insurance excess amount to gain maximum benefit from this type of policy.

 

Compulsory Excess vs Voluntary Excess

 
The compulsory excess set by your insurer can vary from policy to policy and is usually based on factors like your age and driving experience, as well as your claim history and the level of ‘risk’ associated with the vehicle you drive. This amount is not negotiable.
 
A voluntary excess is usually offered by the insurer too. This can be adjusted by you, usually from zero up to several hundred euros. You may wonder why would you want to make your excess higher by adding an amount voluntarily? It’s usually the case that the higher your voluntary excess, the lower your annual or monthly motor insurance premium, so people who consider themselves at low risk of making a claim might choose to set a higher voluntary excess to bring the overall cost of their insurance down.
 
The problem is, you cannot control other drivers, and you can’t predict the future, so even those who consider themselves a safe driver with a low risk of claiming might unfortunately end up needing to make a motor insurance claim. If they have set a high voluntary excess, on top of the compulsory excess, this could mean they are left out of pocket by hundreds of euros.
 

How can excess insurance save you money?

 
Excess insurance can save you a significant amount of money if your combined compulsory and voluntary excess is high, because if you make a claim, your excess insurance will pay out the amount of your excess, up to the limit set by your level of cover. You need to ensure that the excess insurance you have in place is enough to cover your motor insurance excess amount to gain maximum benefit from this type of policy.
 

Who would benefit from excess insurance?

 
Some people may think that excess insurance is only for hire cars, but in fact it’s a very useful policy for any driver to have in place. With a car insurance excess, you may not need to actually physically pay the excess amount, but any insurance pay-out you do get will be less the excess amount, and this could delay you getting back on the road if you need to save money to make up the shortfall for repairs or a replacement vehicle. With excess insurance, you don’t need to worry about any shortfall, because you are covered up to the limit set by your level of cover.
 
To find out more about PSA’s excess car insurance click below.
 
 
 
 

Find out more about PSA's Excess Insurance

 
 
 
 
 
 

Find out more about PSA's Excess Insurance

 
 
© PSA Insurance Solutions
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.
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