Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Getting the right amount of insurance excess when applying for auto insurance

By Jerry Subscribe to RSS | March 14th 2012 | Views:
loading
 
  



When you are looking to get auto insurance, you may become confused about all the variables that you may need to consider. Some insurance companies may have lots of optional features that you can decide to use or not, which makes the whole process of finding the right insurance product that much harder. One of the things that you may have to seriously consider when you are getting auto insurance is the insurance excess. This is something that many people take for granted, but it is actually very important that you get the right kind of excess for you.

The role of auto insurance is very simple. Once you get involved in an accident, the insurance company is supposed to foot the bill for repairs of the car. This may seem very straightforward, but on deeper examination the issue may be a bit more complex than this. For instance, there are some insurance companies that will only foot a part of the bill, and others will take care of all the costs of repair. This means that for any new driver, the issue of auto insurance represents a minefield that may be difficult to navigate.

The issue of insurance excess does not do much to ease the complexity. In a nutshell, excess is the amount of money you would need to contribute towards fixing the damage. Most of the time, the insurance company will not release any funds unless you pay the excess first. This may seem a bit confusing, since the main role of auto insurance is to help you fix the car as has been mentioned above. However, insurance excess is still a very important tool, since it makes the insurance more affordable to many people.

When you go to apply for auto insurance, you will most often be given a chance to choose how much excess you should pay in case you are involved in an accident. In many cases, the higher the excess you choose the lower your cost of monthly premiums. This means that if you decide to take on a huge proportion of any costs, you will be required to pay very little in monthly premiums. This often tempts people to get the maximum excess they can find so that they do not have to pay much in terms of monthly premiums.

While this may be a great cost reduction strategy, it does have a few flaws. For starters, if you take on an amount of excess that you cannot afford, you may find yourself in dire straits when you are involved in an accident. In such cases, you would not be able to pay the excess, and this means that the insurance company will not be able to cover the rest of the cost of repair. This means that when you are considering excess, you should ideally try and get an amount you can afford. The best case scenario is to not get any excess at all, so that in case of an accident the company will pay for damage without any contribution on your part. However, this often means you would have to pay the highest premiums.

Jerry - About Author:
It would also be good to remind your social circle and family members with these tips on auto insurance excesses. After all, this is one area often neglected by people looking to get local auto insurance agents.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/insurance-articles/getting-the-right-amount-of-insurance-excess-when-applying-for-auto-insurance.htm

Related Insurance Articles Subscribe to RSS

Taxi Insurance Broker Quote will give you help to get a company insurance
Published by Atif Saleem on December 10th 2011 | Insurance
There are many companies that are serving to the costumers but there is also a way to wasting your t...
 
 
Four steps to get the cheapest car insurance
Published by Jameshilton on January 12th 2012 | Insurance
Car insurance has been made mandatory by law. But with the rise in car insurance premium rates, it i...
 
What do self-employed people need to know about health insurance?
Published by Andrew Low on February 10th 2012 | Insurance
If you live in the UK and take out health insurance, it is unlikely that you will be able to offset ...
 
Don’t dare drive in Massachusetts without auto insurance
Published by Autoinsurances on January 14th 2012 | Insurance
It’s important to acquire auto insurance Massachusetts if you are intending to drive your automobi...
 
Help yourself by knowing more about auto insurance!
Published by Jerry on March 14th 2012 | Insurance
There are many people who find auto insurance quite confusing and tricky. It is because of this reas...
 
Safeguard your organization by commercial liability insurance
Published by Andrew Edwards on May 17th 2012 | Insurance
There are few insurance plans protecting organizations from facing the issues which can harm on fina...
 
Product liability insurance is a risk management investment
Published by Andrew Edwards on March 14th 2012 | Insurance
Market has reached a position where from it is important for every company to look for risk manageme...
 
Effective Van insurance purchasing ideas and related information
Published by Gregorypeck on February 28th 2012 | Insurance
Making monthly installment on your van insurance policy isn’t more terrible than facing a heavy lo...
 
My cheap car insurance – ways to find car insurance for young drivers
Published by Harrisonford on March 29th 2012 | Insurance
If you are looking for car insurance for your son or daughter, you may be a little anxious how to fi...
 
Know more about a balance car insurance program
Published by Stevediaz on February 25th 2012 | Insurance
You bought a car and you know you have made one of the biggest investment. Now you cannot afford any...
 
Reasonable classics car insurance online
Published by Johnjakson on April 6th 2012 | Insurance
Classic cars are amazing and astonishing. There is no comparison for these types of vehicles. There ...
 
Availing benefits from cheap California auto insurance
Published by Auto Insurances on January 14th 2012 | Finance
In this period of inflation who doesn’t want to save money? Every one seeks to save money from eve...
 
Commercial general liability insurance to cover major issues
Published by Andrew Edwards on February 20th 2012 | Insurance
What kind of business developed by you, it is a major question which signifies type of coverage need...
 
Individual dental insurance plans
Published by Lessardcasey on February 11th 2012 | Insurance
Everyone at some point has been to the dentist throughout his or her life. Most of america can relat...
 
Importance of comparing commercial insurance quotes
Published by Andrew Edwards on April 20th 2012 | Insurance
If you are running a business which is not performing in terms of huge profits...
 
Several categories of Group health insurance
Published by Morgan001 on March 27th 2012 | Finance
The Group health insurance makes individual insurance coverage’s accessible on a member of group b...
 
Getting a cheap van insurance
Published by Robmarshall on March 1st 2012 | Insurance
Previously vans were only used for commercial purpose i.e. for hauling people and goods from one pla...
 
Things to consider when purchasing a wedding insurance plan
Published by Herry Smith on January 24th 2012 | Insurance
The wedding insurance plan covers things like attire, presents, rings and deposits on your different...
 
What will influence the cost of your income protection insurance?
Published by Jenymorison on December 9th 2011 | Insurance
If you have decided to purchase income protection insurance for yourself then surely it can prove to...