An excess is the amount or contribution allocated to the policyholder under the terms of a claim. Different excesses can apply to different events, drivers, activities or types of property within the same policy.
The distinction that matters
The cheapest excess option and the cheapest premium are not necessarily the same choice. Several excesses may interact, and whether they accumulate is a policy-specific question.
What to check
- Basic and event-specific excesses.
- Whether excesses apply per event or per item.
- Any additional driver or activity excess.
- How an excess is collected or deducted.
Example to discuss
Ask for a worked example of a claim involving two damaged items and an additional event excess before comparing quotes on premium alone.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.