What is insurance excess?

The excess of an insurance policy is the part of the cost of the damage that is not covered by the insurance company. For example, if a customer takes out a car insurance with an excess of 300 euros, the customer will have to pay for the cost of the claims that do not exceed that amount; for damages over 300 euros, the insurance company will pay.

Excess is a concept that is mainly used when insuring vehicles and that insurance companies offer as a counterpart to customers who want to get a reduction in the insurance premium. The higher the insurance excess, the lower the insurance premium.

In a car insurance with an excess, the insurer will continue to cover damages that occur due to civil liability (damages to third parties), but in the case of own damages (to the insured vehicle itself) it will be the customer who must first cover them up to the amount established as the excess.