Many types of insurance policy require you to pay an excess. For instance, excesses are usually payable on policies such as house and buildings insurance, car insurance, van insurance, caravan insurance and private medical insurance. This is the amount that you are normally required to pay towards any claim that your insurance company agrees to settle.
The benefit in paying an excess is that it will reduce the amount of your premium. The higher the excess that you are prepared to pay results in a lower premium.
However, in the event of making a claim, the downside of having to pay an excess is that it can place financial pressure on you as it is an expense that most people could do without. For instance, if your touring caravan insurance policy states that you have to pay an excess of £500 should your caravan be stolen and you do not have the savings available you may need to borrow the funds?
Well, a solution could be to take out an Insurance for Excess policy. This will reimburse you for the amount of the excess you have had to pay out up to a maximum figure. The premium that you pay each year on the Insurance for Excess policy is likely to be far lower than the excess amount you would have had to pay. Furthermore, by selecting a higher excess on your caravan insurance policy would also have the benefit of reducing the premium that you would pay on it.
Why not click on the "Get a Quote" button to find out how inexpensive Insurance for Excess insurance is.