Do you hate paying more for car rental insurance? Would you prefer a cheap solution? Excess protection insurance saves money and gives you piece of mind.
Excess protection insurance is an optional add-on to car insurance that protects against rental car damage and theft.
What is Excess Protection Insurance?
Excess Protection is an add-on that allows you to receive a full refund on your excess after a fault claim.
Consequently, if you have to pay your excess after an accident, you can use Excess Protection insurance to recover back your complete excess (which includes both your required and optional excess) throughout the claims procedure.
What does Excess protection insurance cover?
Excess protection insurance (also known as excess liability insurance) covers the same types of liability claims that your primary general liability insurance policy covers, but at higher limits.
Some of the main things excess protection insurance covers include:
- Bodily injury and property damage: If someone is injured on your property or by your product, excess coverage would kick in above the limits of your primary policy.
- Personal and advertising injury: Covers claims related to libel, slander, copyright infringement, and other offenses in your advertising.
- Products liability: Provides coverage if someone is injured by a defective product you manufactured or sold.
- Contractual liability: Covers liability you assume in a contract that goes beyond what standard liability insurance would cover.
- Medical payments: Reimburses medical expenses for injuries that occur on your premises, above your primary policy limits.
- Defense costs: Pays the legal fees associated with defending you against covered liability claims, up to the excess policy limits.
How does excess Protection insurance work?
An excess protection insurance policy pays the expense of paying an insurance claim’s excess.
If you buy automobile insurance with a £500 excess and damage your car, it costs £2500. The insurer will fix your vehicle when you pay £500.
You can get your money back with excess protection insurance. Excess insurance costing £90 annually would save £410 on the £500 excess claim.. You’ll save a lot with excess cover insurance.
You must pay the insurance excess when you file a claim. Excess protection insurance will reimburse you.
How much is Excess Protection Insurance?
The cost of excess liability insurance can vary depending on several factors, including:
• Generally speaking, the rate rises when you purchase additional coverage. For example, extra coverage of $1 million may cost $500–700 annually, while excess coverage of $5 million might cost $2,500–3,500 annually.
• The type of business you have. Excess liability insurance for high-risk businesses like construction companies or product manufacturers will usually cost more than for low-risk businesses.
• Your claims history. If you have a history of frequent or large claims, your excess liability premiums will likely be higher. Companies with a clean claims record can often get lower rates.
• The insurance company you choose. Premiums can vary significantly between different insurers based on their underwriting criteria and profit margins. It pays to shop around at different companies.
• Additional policy features. Extra features like coverage for contractual liability or employee benefits liability will increase the cost of your excess liability policy.
On average, most small to mid-size businesses pay between $500 to $3,000 per year for every $1 million in excess liability coverage. The exact price will depend on the factors above for your unique business situation. The best way to determine how much excess liability insurance may cost for you is to get quotes from multiple insurance companies. They can evaluate your specific risks and provide a customized premium based on your needs.
Is excess protection worth it?
Excess protection isn’t simply a smart idea for your own vehicle. But When you rent a car for a vacation or for work, it can provide you with genuine peace of mind. If you damage a rental car, you have to pay a surcharge fee.
Here are the following reasons why excess protection insurance might be a good option for you.
Excess costs is huge:
The rental company will normally tell you how much you’ll pay for car damage.
If you damage a rental car, you may have to pay up to $4,000. If you rent a speciality or luxury vehicle, this excess fee will be substantially more. It seems like a no-brainer at $2.83 per day for rental car excess insurance.
Future is unpredictable
Even if you weren’t at fault, you’re responsible for car damage. You can’t control a hail storm, a kangaroo running onto the road, or a car theft, even if you’re a good driver.
Excess protection insurance is expensive, but it guarantees that you won’t have to pay those huge excess charges.
Affordable Premium cost
The average cost for excess protection insurance is very cheap. Costs for a standalone policy can start as low as $2.83 per day. Moreover, monthly premiums usually cost 10 to 15 dollars per month.
Types of Excess protection
Single policy:
This covers the excess on one insurance policy, such your automobile or house.
Lifestyle insurance covers the excess on numerous insurance policies, such as your car, electronics, and health.
What is meant by lifestyle excess insurance?
In addition to purchasing excess protection for your car coverage, you can also get lifestyle excess insurance. This annual coverage would cover the excess charges on all of your insurance plans, including auto, house, pet, and travel insurance.
If you want to be financially protected from excess charges, this is a good option, but it only covers a certain amount. If you get excess protection insurance for £500 and make multiple claims in a year totaling more than this amount, you will only receive £500.
What is Excess insurance for car hire?
Excess cover insurance is an automobile insurance policy add-on. In the case of a claim, excess protection insurance reduces or eliminates your excess amount.
The excess is the amount of money that a policyholder agrees to pay towards the cost of a claim before the insurance company pays out.
If an automobile insurance policy has a £500 excess and repairs cost £2,000, the policyholder pays £500 and the insurer pays £1,500.
Excess protection insurance pays the claim excess. This means that the policyholder would not have to pay anything out of pocket.
This can provide peace of mind and financial security for drivers who want to protect themselves against unexpected expenses.
Who can purchase Excess cover insurance?
Individual with following traits are eligible for Excess cover insurance
- Holding UK, EEA [European Economic Area], or Switzerland drivers license
- living in the United Kingdom permanently
- Qualified to hire and operate a rented car, as well as follow the terms of the rental agreement
Which car models are covered by this policy?
All models as long as they match the following requirements:
- Car having a value of up to £50,000 (excluding tax) at the time the policy is activated.
- Car age of less than 20 years of age
- Vehicles having up to 9 seats.
What do you mean by ‘excess’?
The excess is the amount you pay toward an automobile insurance claim. Typically, there are two parts: compulsory excess and optional excess.
Compulsory excess
Your insurer sets this amount when you get a quote and it is non-negotiable. The compulsory excess depends on your car and age.
Voluntary excess
This amount is added to the obligatory excess when you file a claim. A higher voluntary excess lowers premiums. But make sure it’s reasonable if you need to claim..
Do I have to pay the insurance excess if it wasn’t my fault?
In most situations, you will be required to pay your excess in advance. If your auto insurance company can demonstrate that you were not at fault, the excess will be restored to you.
Occasionally the motorist will have told their insurer and confessed fault right away, which means your excess will be canceled. Nonetheless, if you need to make a claim, you should be prepared to pay your excess.
