Motorbike
Insurance Cover explained - What is an Excess on my policy
?
Excess:
In the event of a claim the Excess is - The
specified sum which the insured must bear before the Motorcycle
Insurance Company pay their liability.
In the event of liability exceeding the limit of indemnity
specified the Motorcycle Insurance company pay the limit
specified providing the insured has borne the limit of his
policy excess.
Unlike a deductible, the excess sits below any sum insured,
e.g. an excess of £1 million and a sum insured of
£10 million means that the insurer is liable for £10
million once the insured has paid the first £1 million
of any loss otherwise covered by the policy.
Often excesses are for quite small sums, e.g. £50
accidental damage excess under motorbike insurance.
Excesses may be voluntary to secure premium reduction or
compulsory as an underwriting measure or simply to eliminate
small claims.
If you are a good rider or one who doesn't
claim for fault accidents, then a high voluntary excess may
well significantly reduce your motorcycle insurance premiums.
In effect the voluntary excess alllows the proposer to take
on some of the motorcycle insurance risk themselves.
|
