Then you have an accident and the repair bill is 500.

What is a good amount of excess for car insurance. For example if someone under the age of 21 causes an accident while driving your car youll have to pay your Basic Excess lets assume its 600 plus an additional excess. Your insurer may have different types of excesses and some policies may have more than one applicable excess. To better understand how excess works Smit outlined this hypothetical example.

When making a claim you will have to pay the compulsory excess. If your car is damaged the amount you pay towards getting it fixed will be set before you purchase your policy. If youre under 21 sometimes youll have to pay an additional excess on top of the compulsory and voluntary payments.

This insurance will pay for your excess in the case of an accident. A car insurance excess is the fixed amount you pay towards a claim. How does car insurance excess work.

Most insurers will have a maximum amount for voluntary excess which is usually between 300 and 1000. Imagine that you have an excess of 100. Your Basic Excess plus any additional excesses that apply.

The amount of the claim doesnt exceed your threshold so you pay 500. Not every type of policy has the same kind and level of excess and excesses dont all apply in the same situations. The insurer pays 0.

53 of policies made drivers under 21 pay an additional accidental damage excess ranging from 350 to 499. An excess is the amount you must contribute toward a claim for each event that occurs. If you had a 600 excess youd pay the first 600 and the insurer would pay the remainder.