Auto Insurance, Essential Information About Excess Payments
When you are looking for cheap auto insurance quotes, you will hear a lot of different terms and definitions. You may even be looking for and trying to understand those terms and definitions that will make your auto insurance quotes more affordable. If you are, one term you may be hearing over and over again is the term "excess payments". The term "excess payments" can be one that is difficult to understand when you are trying to navigate the world of auto insurance. This term is also frequently known as "deductible". Understanding this term and how it relates to your specific situation could help you greatly when it comes to saving money on auto insurance.
The term that is known as excess payment is a term that refers to an amount that you agree on with your insurance company. This amount is one that you contract with your insurer to pay before the insurance company pays in the event of a collision or necessary claim. Generally speaking, excess payments and deductible amounts are set and contracted for situations where you would be found to be at fault, in situations where you are not at fault, the other parties insurance would cover your losses completely.
For example, if you are involved in a car collision where repairs are required to your vehicle, you will be the first party making any payments towards repairs. After your repairs are complete, when you pick up your vehicle from the garage or repair center, you will make the contracted amount excess payment, and your insurance company will cover the rest. In some cases, even where you are not at fault, you will make the excess payment first, and then submit a claim through the other parties insurance company.
When it comes to auto insurance quotes, you may also find that there are different types of excess. The term compulsory excess refers to an amount that is mandatory and will not be an option for you. When it comes to issue of poor driving record or poor insurance history, some insurance companies will make you have a compulsory or mandatory excess payment term on your policy. This protects them somewhat from the risk they may take on with you.
In other cases, the term voluntary excess payment will apply. This term refers to you the policy holder making the decision on an excess payment or deductible. When people choose a voluntary excess payment, they often do so as a means of lowering their risk to insurance companies as a means of also lowering their auto insurance quotes. If you are looking for ways to save on insurance, but want a comprehensive package, you may want to consider a voluntary excess payment term in your policy.