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Excess Powered By Docstoc
					An excess payment, also known as a deductible, is a fixed contribution that must
be paid each time a car is repaired using an automotive insurance policy.
Normally this payment is made directly to the accident repair "garage" (the term
"garage" refers to an establishment where vehicles are serviced and repaired)
when you collect the car. If one's car is declared to be a "write off" or "totaled" the
insurance company will deduct the excess agreed on the policy from the
settlement payment it makes to you.

If the accident was the other driver's fault, and this is accepted by the third party's
insurer, you may be able to reclaim your excess payment from the other person's
insurance company.
[edit]Compulsory        excess
A compulsory excess is the minimum excess payment the insurer will accept on
the insurance policy. Minimum excesses vary according to the personal details,
driving record and insurance company.
[edit]Voluntary     excess
To reduce the insurance premium, the insured may offer to pay a higher excess
than the compulsory excess demanded by the insurance company. The voluntary
excess is the extra amount over and above the compulsory excess that you
agree to pay in the event of a claim on the policy. As a bigger excess reduces the
financial risk carried by the insurer, the insurer is able to offer you a significantly
lower premium.

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