Be Ready for Excess Payments

Posted in Auto Insurance , Property Damage

January 9th, 2009

Excess payments are bills you pay each time your car gets repaired under your car insurance policy. Its a fixed proportion youll pay for every bill. An insured motorist will pay this excess payment to the garage itself when he or she goes to pick up their car once its ready. The easiest way to imagine your excess payment is like the co-payment you make when you visit your doctor.

If you have to make an excess payment for repairs to your car that were incurred from an accident with another driver and he or she is responsible for the accident you will more than likely be able to recover your excess payment through the other drivers insurance company.

Excess payments, like deductibles, are broken down into two categories, compulsory and voluntary. Compulsory excess payments are those dictated by your auto insurance company, based upon your driving record and your overall demographic information: where you live, your age, your marital status and other factors. Every single insured motorist will pay some form of compulsory excess payments, no matter what. Voluntary excess payments, on the other hand, are those that a consumer will opt for in order to lower their monthly premium. So, in other words, if you agree to make higher voluntary excess payments, you will pay less on a monthly basis but if and when your car gets damaged, you will have to pay higher excess payments at the auto shop when you go in to pick up your car. Again, its like a higher co-pay at a visit to the doctors office.

If you have questions regarding compulsory and voluntary excess payments, be sure to ask your insurance agent exactly what its all about, and what would be the best excess payment schedule for you and your family.