What is High Excess Insurance?

[P.Turnbuckle]

Hi there.

I wondered if anyone could explain High Excess insurance to me? It seems to be a way of lowering your monthly premiums by having an excess of around �3000.

What I dont understand is who this is for, and how the company makes money from it?

Thanks in advance.

[redcrx]

the insurance company would presumably make money by the fact that the insured would take great care to avoid having to claim. Therefore the risk to the insurer would be less.

If the insured does make a claim then the insurer pays out �3000 less, again reducing its loss there.

[redcrx]

ah so its car insurance.
Well i would presume it would be for young drivers trying to keep their costs down in the first instance. They take the risk that they wont need to claim.

[barry1010]

If you're driving an old banger that's worth �3k or less, insuring on 3rd party only would be just the same. You wouldn't claim if the car was stolen or burnt out, or had accident damage.

[R1Geezer]

It's aimed at youngsters who really only want to get on the road and be legal so it would lower their premium and in most case the insurer would only have to cover third party damage.

The main obstacle to new drivers is the cost of insurance, you can buy and old banger for �1000 and have to pay more than that to insure it. In most cases this is effectively third party only. There is of course a large risk based on what they might hit. So if young snotty stuffs it into a Bentley then the insurers have done their money!