How does your policy surplus work?

The car insurance premiums can be a real pain in the portfolio - especially for young drivers - so most of us are produced, everything will keep costs low.

Of course, there are all the usual things we can do, and make sure that never renew the quote of our insurance will automatically accept and always provide other insurance companies to compare what. But many of us do not think of changing our surplus, although this will have a great impact on the cost of coverage.

Surplus is little of any insurance claim you must pay yourself - then when we talk about the engine cover, home insurance or travel insurance.

There are two parts of the surplus. There will be a compulsory or mandatory part, which is no other choice, but has to pay, and a voluntary part to the size of which you can decide an amount. Therefore, your policy might be a forcing over £ 150, but you can choose another £ 150 voluntary surplus which, in the case of a claim, will cost you a total of £ 300.

If quotes compare the channel MoneySupermarket.com auto insurance, you can see both the compulsory surplus and voluntary surplus. Once you have chosen the policy you want, and go through the respective location provider, it is at this moment that the voluntary surplus level can be adjusted.

The higher the voluntary surplus you pay, the lower your premiums because the insurer will not pay so much in the event of a damage. But a word of warning, if you plan to keep their very high surplus in order to keep premiums low, make sure you still make a claim.

Imagine how irritating it would be to have an accident and to know you have an insurance in place, but you can not bump the cost of the excess, so it is impossible to get the car back on the road too get.

Another problem with the voluntary surplus adjustment is very high meaning that you can never just be able to make a claim to incidents. Therefore, if you have a prang in your car and put back £ 500 to fix, would be useless to claim a claim because the excess is twice the cost of repairs. Now this could not be a problem if it happened once but could be considered very frustrating in the end if you have a few incidents in which no financial sense claim.

Also remember that some insurers do not allow you to push excess too high - or at least help reduce the premium in dependency, so always check what the maximum limit is allowed (ie, taking into account for the above reasons , Not necessarily useful to choose them). When I checked in, the typical limit seemed to be around £ 500, which seems a reasonable amount - much more than likely to be prohibitive for most people.

And if you are a younger driver, remember that there may be an additional excess of excesses about their voluntary and compelling. Some insurers beat as much as other surplus of £ 400 if you are under 21 years and make a claim, or about £ 200 if you are between 21 and 24 years old, check if this is the case before your voluntary Excess to how the last thing you want to meet with unexpected unpleasant financial surprises is when you need to claim.

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