If your insurance policy has an excess of 00, it generally means you have a zero excess policy. This means you do not have to pay any amount toward the cost of an insurance claim. The insurer will cover the full claim amount without requiring you to first pay any deductible or excess amount yourself. Essentially, "00" excess means no out-of-pocket payment is needed from you when making a claim.
What is Insurance Excess?
Insurance excess is the pre-agreed amount of money you pay towards a claim before your insurer pays the balance. For example, if you have an excess of $200 and make a $700 claim, you pay $200 and the insurer pays $500. It usually applies each time you make a claim.
Zero Excess Explained
When the excess is 00 or zero, the insurer pays all costs of the claim without you having to contribute any amount upfront. Zero excess can be an optional extension to some insurance policies, especially motor insurance. This tends to come with a higher premium but offers peace of mind by removing the initial payment barrier for claims.
Types of Excess
- Compulsory excess: Set by the insurer and must be paid on every claim.
- Voluntary excess: An additional amount you agree to pay to lower your premium.
In case of zero excess, neither compulsory nor voluntary excess applies, meaning no payment is needed from your side when claiming.
Thus, an excess of 00 means no excess, and the insurer covers claims in full without your upfront payment. This can be particularly useful for avoiding unexpected expenses during claims. This explanation covers the key meaning and implications of having an insurance policy with an excess of 00.
