Excess is a pre-agreed amount of money that is payed to the insurance provider in the event of a claim.
Example: If the overall excess amount is £250 and the claim is £1000, the client will need to pay £250 leaving the insurance provider to pay £750.
There are two types of excess amounts:
Voluntary - This is the amount chosen by the customer, generally the higher the excess the lower the premium.
Compulsory - The underwriter will always put a set amount of compulsory excess forward.
These two combined equal the total excess.