Excess Protection Insurance - Arkwright Insurance

Excess Protection Insurance

This type of insurance coverage could help you avoid excess charges in the case of making a claim due to being involved in a car accident. Excess is the amount of money that the insurer asks you to contribute to the overall cost of the policy. The excess protection insurance is an additional cover and normally included with a standard car insurance policy

Excess is normally split into two parts and the first one is the compulsory excess which is a must and is non-negotiable and this amount is set by the insurer. 

The amount will depend on few factors such as:

  • Your age
  • Age of your car

The second part is the voluntary excess which the insurer would allow you to set and this will can sometimes to lower your premium.  As an example, say if the compulsory excess on your policy is £250 and you set your voluntary excess at £100, you have to pay the first £350 of a £750 claim due to an accident.

Excess Protection Insurance

One must take into account that the lower the excess the more expensive your insurance policy will get.

When taking out an excess protection insurance you must understand that your excess in a number of likely situations when you can’t claim fr4om a third-party and this includes:

  • In the case of where the car has been stolen
  • If the accident was your fault
  • If in the case where the third party was uninsured and you haven’t got their details
  • In in the case of an accident where the third part has driven off

Motor excess protection insurance will reimburse the excess paid of any claim for:

  • Accidental damage
  • Fire damage
  • Theft
  • Attempted theft
  • Malicious damage

Here are some of the benefits of our excess protection cover:

  • Upto 50% cheaper than our competitors
  • Flexible policies with start dates
  • Can cover businesses, cars, vans, motorbikes etc.

This type of policy will cover the named driver of the policy and with anyone else who entitled to ride or drive the vehicle and normally covered under motor and car insurance policy that have purchased.

What is car hire excess insurance cover?

If you hire a car and if was to get damaged or even stolen, the excess is the amount of the money out will have to pay the rental company upon returning the vehicle.  Normally this is an optional cover you can purchase at the time of the hire of the vehicle.  This type of policy protects you against any excess charges you may incur in the case of your hire vehicle was to become damaged or stolen.

Other terms used for this type policy are:

  • Car hire excess insurance
  • Excess insurance
  • Excess waiver insurance
  • Super CDW
  • Deductible

Other access protection available are for the following:

  • Motor Fleet
  • Commercial and or business
  • Property
  • Motor trade
  • Taxi fleet

What is excess buyback insurance for a business?

The point of purchasing a Business insurance policy is to protect you and your business against inordinate and unexpected costs. However, even with an insurance policy in place, you will most likely still be liable for the ‘excess’, or the amount that must be paid by the policyholder before the insurer pays out on a claim. Therefore, if your insurance policy has a high excess, you are not completely protected against surprising and unexpected expenses.

Paying high excesses can hurt your business’ bottom line and take money away from other areas such as expansion and growth.  By purchasing an excess buyback policy, you can help soften the blow of having to suddenly pay a large excess in order to receive insurer compensation. Consider securing excess buy back cover to make sure your business is fully covered.

What is it?

Excess buyback insurance protects you and your business against unexpected and high excess costs. For a low annual premium, it covers your excess when you make a claim. The excess limit is typically set as a yearly aggregate of between £250 and £2,500. This means that if your primary policy requires an excess of £500 and you purchase an excess buyback limit of £2000, your access will be covered for up to four claims within the year.

Typically, general insurance policies with higher excesses will have lower premiums. Consult your insurance policies to see if your costs follow this ratio. If you pay a high excess and a high premium, perhaps it is time to reconsider your cover.

What are the Benefits?

When purchased strategically, excess buyback insurance can help you reduce high premiums and burdensome excess payments without sacrificing cover. When you lower the premium for your original policies, you may be saddled with higher excesses. Reduce this cost by purchasing excess buyback insurance that way you secure a low premium and help mitigate the risk of the subsequently higher excess.

Excess buyback insurance applies to a wide range of both commercial and personal covers, so you should not have trouble finding a policy to supplement your existing insurance.

What are the Risks?

Despite its ability to circumvent high, unexpected costs, excess buyback is not free of risk. Not all policies are suited for excess buyback cover. A valid excess buyback claim only arises when you make a claim under the primary insurance policy; therefore, the original claim needs to exceed the excess.

Purchasing excess buyback insurance will depend on your unique situation and risk profile. For more information on securing excess buyback insurance to provide additional protection and reduce unnecessary expenses, contact Arkwright Insurance Brokers today.


Review Date
Reviewed Item
Excess Protection Insurance
Author Rating