What is EXCESS insurance?
Most insurance policies carry either a compulsory or voluntary excess, which is a fixed amount that you must pay out if you make a claim on your insurance policy. Progressively, insurance companies have increased premiums higher than inflation rises, so it is now common for them to also impose higher excesses, which can mean that for relatively minor claim you may end up paying large amount towards the claim due to the excess amount on your policy.
As an example, if your claim is £900 and your policy excess is £500, your insurance provider will pay only £400 of the cost, leaving you to make up the balance of £500. This is where excess protect adds real value to you, an excess protection policy will pay you back the excess premium you have had to pay, in the example above £500.
It is common for voluntary policy excesses to affect the premiums charged on the main insurance policy e.g. a higher excess is less risk to the main insurer, which means that the main insurer may drop the cost of the insurance. It is worth checking if a combination of the two can reduce your overall insurance costs i.e. that if you choose a higher excess and insure that excess as well, you may be better off overall; even so, you will always be liable to pay the policy excess unless you have it insured.
What is Individual Light Commercial Vehicle XS
Cover is provided for the reimbursement of the excess of an individual vehicle insured on a main commercial/vehicle fleet insurance policy, following a settled claim up to your XS policy cover level, for cars, motorbikes or light commercial vehicles up to a gross vehicle rate of 3.5 tonnes.
A commercial/fleet motor vehicle for the purpose of this policy is a vehicle insured by a main commercial/fleet vehicle insurance in the UK not exceeding 3.5 tonnes (not being an invalid carriage) which is constructed for the carriage of passengers and goods in connection with your business and including vehicles used for hire and reward, of which you are the owner, registered keeper or where the vehicle is leased by you and which you are responsible for under a leasing agreement, or where you are legally responsible for that vehicle.
The XS policy covers only one vehicle.