Policy Excess - The Part You Pay Explained

1st August 2017

Home, Money

If you have ever made a claim on an insurance policy, you may have been caught out by what is known as the policy excess. But what is excess and why do you have to pay when you make a claim?

How Excess Works

In a nutshell, your excess is a fixed amount that you have to pay towards a claim on your insurance. The amount you pay will depend on your policy and it is always worth checking this amount before you buy any kind of insurance policy.

Generally, opting for a higher excess will usually result in your insurance premiums being lower, so watch out for this when looking for the cheapest policy as you need to make sure you can afford to pay the excess in the event of a claim. Some policy excess payments can run into hundreds of pounds and can be a nasty surprise when it comes to making a claim.

Why Do Insurance Companies Charge An Excess?

One of the biggest reasons that insurance companies include an excess on their policies is to reduce the amount of small claims that are made. Many minor claims would cost the insurer more in administrative charges than the claim being made. Therefore, insurance companies add an excess to their policies to avoid such small claims. They are also put in place to deter people from putting in fraudulent claims.

With Asda Home Insurance, you can choose the level of excess you are will to pay from as low as £50. If you are looking for a home insurance quote that is completely transparent and that leaves you in no doubt about your excess amount, get in touch with our team at Asda Home Insurance. We would be delighted to provide a quotation that suits your exact needs.
Get a quick quote online or call our team today on 0800 479 8711.

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