What is Excess Insurance and Why Do You Need It?

When you submit an automobile claim, you need to pay an excess.  There are two types of excess payments; compulsory excess and voluntary excess.  

The former refers to an amount that is set by your insurer. This set amount will depend on factors such as age, type of claim, and the type of car you drive. This amount is non negotiable.  

The later refers to an amount you can actually determine yourself. The more you pay for the voluntary excess payment, the lower your insurance premiums will be.  However, if you do make a claim, you will be paying more out of pocket in the form of a an excess payment.   

What is Excess Insurance?

Excess insurance is supplemental insurance that you can add to your existing car insurance to cover the cost of excess payments when or if you need to make a claim.  The amount of the excess payment, of course, is agreed upon beforehand.  The way is works is that you still cover the excess expense during a claim but you then submit another claim to get reimbursed for the excess payment you made.  

Why You Need Excess Insurance

If you were to have to make a claim down the road, will you be able to afford the excess payment?  if you don’t think so, you may want to consider purchasing excess insurance. The amount for excess insurance will be easily charged on top of your traditional car insurance policy premium.  

To learn more about purchasing excess insurance in Pembroke Pines, FL, contact the friendly agents at McCormick Insurance Inc.  We can answer all of your questions and help you find the right excess insurance for your automobile.  Contact McCormick Insurance Inc. serving the Pembroke Pines, FL area today at 954-602-5741.