| Insurance Deductibles And Insurance Excess?How Are They Related |
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| Written by Graham McKenzie |
| Sunday, 28 February 2010 14:29 |
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The moment a vehicle is purchased. The next accomplish is to locate and purchase some sort of vehicle insurance. There are several companies available to compete for your business so, this will require some time on your part. When discussing which coverage is needed, there are words used purposely by the agent that will sound like a foreign language to you. Question these words.
The moment a vehicle is purchased. The next accomplish is to locate and purchase some sort of vehicle insurance. There are several companies available to compete for your business so, this will require some time on your part. When discussing which coverage is needed, there are words used purposely by the agent that will sound like a foreign language to you. Question these words. An ?excess? is simply the amount of money the insured person will have to pay before the insurance company compensates in any way. The sum of the deductible is sometimes calculated involving three situations. One how the wreck happened. Two, how much damage was caused. The third being, the danger risk level of the operator that is covered. When you are considered high risk, that doesn't mean you have done any bad driving. If you have just started operating a vehicle, you are a high risk. Look for an insurance company that will be willing to raise a deductible. Usually an insurance company will negotiate and raise the set deductible amount, to enable a less expensive monthly obligation. When you receive a quote on an insurance policy, you will have to provide a copy of a record of driving history. Accidents, violations, etc, will be included. The only way to clean up a motor vehicle operators record, is time. The more time that passes without a violation or accident will cancel out the red marks included on the driving record, in turn will lower the price of a monthly premium and a deductible as well. If you think you will have a greater chance of being in an accident for whatever reason, and the deductible is out of your budget. You may request that your flat monthly fee be set higher. Then when a wreck happens, your deductible will be affordable, and your repairs will be fixed and paid for by the insurance company. Most beginning drivers have the mind set of an accident won't happen to me. This mind-set, comes with a bit of a gambling technique. Since the thought of being involved in an accident doesn't jive with beginning drivers, it is not a worry to have an outrageous deductible on their policy. This does lower the monthly amount that needs paid to be legally able to drive. Usually, there are minor fender benders that do not harm anyone or anything involved. Such as a driver bumps another driver that was sitting still. When both parties agree there is no harm done. There does need to be a claim filed with the insurance company. This will mean there is not an accident recorded on the driving record. When an estimated cost of repairs, is higher than the deductible, it is wise to not report this incident to the insurance company. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Graham McKenzie is the content Syndication Manager at Insurance123.co.za South Africans leading car insurance information portal |