What Is Voluntary Excess on a Motorcycle Insurance Policy?

Voluntary excess is the amount you agree to pay towards any claim on top of the compulsory excess set by your insurer. By choosing a higher voluntary excess, you may be able to reduce your insurance premium. However, keep in mind that you will need to pay this amount if you make a claim.

 

When purchasing insurance, one of the primary factors to consider is excess. Excess refers to the amount you agree to pay before your insurer pays out on a claim. In most cases, there are two types of excess that can apply: compulsory and voluntary. Compulsory excess is set by the insurer as a non-negotiable amount that must be paid in the event of a claim. On the other hand, voluntary excess is an amount chosen by you above and beyond what your insurer requires.

 

While opting for higher voluntary excess might seem like a great way to reduce your premium at first glance, it’s important to evaluate if this option makes sense for you financially. Remember that in case you make a claim against your policy, you will be required to pay this agreed-upon sum out-of-pocket before any payment from your insurance provider comes through.

 

If you’re considering increasing your voluntary excess level, assess how much money you can realistically afford upfront if something goes wrong down the line. You should also weigh potential savings against whether having more cash on hand would provide greater peace of mind or financial security over time than paying lower premiums with higher deductible levels.

 

In conclusion, choosing between mandatory and optional deductibles involves striking a balance between affordability and protection. While setting high deductibles can often result in reduced premium costs initially; keep in mind that it could put an additional burden on finances when filing claims later on – which may not be worth it for everyone’s situation! Therefore, taking into account one’s budget constraints alongside risk tolerance levels become crucial while deciding upon an appropriate policy – It all depends on individual needs and priorities!

 

– Excess refers to the amount you agree to pay before your insurer pays out on a claim.
– There are two types of excess that can apply: compulsory and voluntary.
– Opting for higher voluntary excess might reduce your premium, but you should evaluate if this option makes sense for you financially.