The excess on an insurance policy is the amount that the insurer requires you to pay in the event of a claim. It was introduced to try and reduce the number of small claims that were being made on van insurance policies. For example, if you have got a £250 accidental damage excess on your van insurance policy, then you are unlikely to claim for any loss valued below this figure. As a result, the insurer has to pay out for fewer claims. This can lead to a reduction in premiums that we have to pay for our van insurance.
There are five different types of excess on a van insurance policy. These excesses are the Fire & Theft excess (Payable in the event of a theft, attempted theft or fire damage to your vehicle), the Accidental Damage excess (This would be payable on a Comprehensive van insurance policy if you need to claim for damage to your own van – It is made up of two different excesses, the Compulsory excess and the Voluntary excess) and finally the Windscreen excess (Payable in the event of a windscreen claim if it is covered by your policy). |
