You can specify the excess amount that you will pay, at the time of buying the car insurance policy. So when your car is repaired through the purchased car insurance, you are also required to pay a particular amount for the repair costs. In case the car is beyond repair, the insurance company will pay you a settlement amount, minus the excess amount agreed upon. If the accident was not your fault, the insurance company of the other driver will pay for the costs of your car repair.

There are two types of excess premiums – compulsory excess and voluntary excess.

Compulsory excess is an amount that has to be paid while voluntary excess is an excess amount that a driver chooses to add to the car insurance policy. Young drivers below the age of 21 have to pay compulsory excess but those above 25 need not pay this excess amount.

Voluntary excess is paid for the sole reason of reducing the premiums that you pay towards the car insurance policy and when both these excesses are paid in conjunction with the other, the driver may have to pay quite a hefty sum when filing for a claim.

As the insurance excess amount that you pay for the car insurance policy affects the premiums that you pay, the higher the excess amount, the lower will be the premium. High excess car insurance is important for those who are prone to car trouble on the road or have expensive cars. It is also useful for young drivers because it helps reduce the premiums they have to pay towards the policy.

However, a high excess car insurance policy may not be ideal for everyone. This is because if the value of your car is low but the excess that you are paying is high, you will only end up receiving what you paid for the excess. Since you must first pay the excess to avail yourself of the insurance claim, it is worth considering if you need to pay the excess. In order to reduce your premium by a mere £10 to £20, you may end up paying more.

The car insurance rates are normally very fluid. It?s quite possible to reduce your car insurance rates by changing your behavior, which you can do by having a clear understanding of how the rates are normally assessed in the market. The rates will more often than not be based on risk assessment. Even though the companies will have varying rates in order to compete for your business, they will also have varying rates due to the risk posed by a certain driver who is driving a certain car. This they do because it would be totally pointless to buy business with low rates and insure a high-risk driver at the same rates. It?s an automatic recipe for losing cash.

Needless to mention, if you reduce your risk, you reduce your car insurance rates. You might be wondering how you can reduce your risk. There are some ways that your driving as well as your car behavior can have an impact on your insurance rates. Look at your car of example, is it fit for your needs? Is it roadworthy? If it is not, it would be wise if you thought of changing it. Note that different types of cars will attract different car insurance rates. High powered cars, sports cars, cars that are at high risks for theft and vandalism will attract very high insurance rates. The duration in which you have had your car will also play a role. If it?s an old car, wouldn?t it be wise to think of getting another one that?s cheaper to insure and one that will be handier for you. Do you think of yourself a safe driver? Are you prone to driving offenses? Do you normally stick to your car?s speed limit or sometimes you decide to exceed when there are no cops around? Wait until you see your car insurance bill and you?ll know the consequence of driving offenses and speeding tickets. Having a clean driving record will automatically reward you with a cheap insurance rate.

If you prove that you can attend an advanced driving training course, you can get a special discount because it translates to a lower risk. When assessing car insurance rates, many insurance companies will also look at the amount of driving you do. If you prove that you can take public transport to work, or car pool, you are likely to get lower rates because it means reduced risks since less driven miles translate to less risk. 

Jorge Reis is the author of Cheaper Car Insurance and Car Insurance Online.

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