What Does Excess Mean in Car Insurance?

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In the realm of car insurance, the term "excess" is used to describe a very particular thing. Find out about what "excess" means in car insurance with help from an independent insurance agent and small business owner in this free video clip.

Part of the Video Series: Auto Insurance
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This is Melissa Morley with All Seasons Insurance, and today we're answering the question, what does excess mean in car insurance? Excess is the amount that you have to pay when a claim is made, to have the work done on your car. Sometimes it's called a deductible. Say, for example, you opt to have $500 excess insurance on the collision portion of your auto insurance. If you are in an accident and the accident is your fault, and you take your car to the shop, the shop is going to want that amount of money to get your car back. The insurance company offers a reduced rate on your insurance premium, the higher your excess or deductible is on your policy. It is one way that you can actually control the costs. It's good, but always keep in mind, what can you really afford? Many people go with a $500 deductible on the collision portion of their auto insurance. Some people can afford a thousand. For others, they might to pay a little bit more knowing that if they're in an accident and it's their fault, they only have to pay $250. So, remember that an excess amount is the amount that you have agreed with. To get a good idea, maybe you should have this discussion with your insurance agent and go over your policy, and find out what it is that's on your policy so it doesn't come as a big surprise to you. This is Melissa Morley with All Seasons Insurance, and today we've discussed excess auto insurance.

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