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.
Family Multi Vehicle XS
You are covered for an amount equal to the excess in relation to each settled claim on your main vehicle insurance policy up to the annual aggregate limit in respect of claims arising from a vehicle insurance claim only. This family multi vehicle excess insurance policy covers up to three motor vehicles that belong to your family.
Family means your spouse or someone you have a permanent relationship with or your immediate relative who lives with you at your home, and who, along with you, is named in the main insurance policy.
A motor vehicle can be a personally owned car or motorbike (being a motorised motorbike which is a motor vehicle with a seat or saddle for the use of the rider and one passenger and designed to travel on not more than three wheels in contact with the ground), which is registered at your home address, which is constructed for the carriage of passengers and their effects and is adapted to carry not more than seven passengers and does not exceed 3.5 tonnes, of which you or family members are the owner or which you are authorised to drive, and is used for:
- social, domestic pleasure and commuting to and from your place of business.
- personal business use by the policyholder including business use class 3, which means where you and your named drivers are authorised drivers using the vehicle for business, to solicit orders and deliver pre-purchased goods but not as a taxi. This includes sales representatives, consultants and agents.
You are also covered where you have been unsuccessful in recovering the excess cost from a third party within six months of making a valid claim against them under your main vehicle insurance policy. Cover benefit options available range between £250 - £1000.