Excess protection might be good news for anyone thinking about making an insurance claim, but worried about what appears to be a significant excess to pay.
An excess is a common enough feature of many insurance policies. It represents the first part of any claim that you might make and the excess, therefore, is something to pay from your own pocket. Sometimes the excess might be compulsory – you have no choice but to accept such a share of the risk – or voluntary, if you wish to assume a greater part of the risk and gain a reduction in insurance premiums as a result.
Excess protection insurance is an additional extra to the main policy, therefore, and typically safeguards you against the financial liability of the excess amount. Such excess cover may be purchased separately, as a standalone policy to accompany the underlying insurance. Then, if you need to make a claim, this may be done with the added reassurance that you have help in paying any excess – either the whole of it or just part of it, depending on the level of excess protection insurance you have chosen to buy.
Excess cover, therefore, might help you to enjoy the best of both worlds, by allowing you to accept a higher excess in order to reduce the premiums for the principal insurance, whilst at the same time safeguarding your responsibility for meeting the cost of that excess if you need to make a claim.
If you are concerned about the amount of excess you may be required to pay as the result of making an insurance claim, therefore, excess protection might come as particularly good news.