Adjusting your auto insurance excess can be a fantastic way of saving money on your annual premium. Australian road users can reduce the size of their quotes by taking on an element of the risk themselves. The excess figure relates to a preliminary payment that the policyholder must make before the auto insurance carrier settles any outstanding balances in the wake of a road traffic accident.
The higher your auto insurance excess figure, the less risk your carrier has to take. If, for example, your excess is set at $500 and the total repair bill comes to $1300, your auto insurance company will pay the outstanding balance of $800 in repair costs once you have provided $500 yourself. Your excess will usually be paid to the proprietor of the auto body shop or garage where the work is being carried out.
In some instances, such as in a road traffic accident that wasn’t your fault, you should be able to claim any excess payments back from your auto insurance carrier. However, it is advisable to check the terms and conditions on an individual policy prior to making an auto insurance purchase to establish whether this will be the case.
Excess can be easily adjusted at the same time as auto insurance quotes are being compared. On most price comparison websites, an adjustable bar is provided to increase or decrease your excess costs. In turn, your annual premium will be adjusted based on the amount of risk you are actually prepared to absorb yourself.