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.
Light Commercial Vehicle Fleet XS
Cover is provided for the reimbursement of the excess of your commercial motor fleet insurance policy following a settled claim up to your XS policy cover level for light commercial vehicles up to 3.5 tonnes.
If your commercial vehicles are covered by a commercial/fleet insurance policy, then this is the XS policy you must take out; however, if you only wish to take out XS protection for one vehicle in the fleet, then you must take out the Individual Light Commercial Vehicle XS policy.
Light Commercial Vehicle Fleet XS policies may be taken out for; 2 to 5 vehicles, 6 to 10 vehicles, 11 to 15 vehicles or 16 to 20 vehicles (20 being the maximum). Although aggregate cover levels may range from £1000 to £6,500, the maximum level of cover for any one XS claim is £2000.