Premiums

POLICY CHECK FIVE:
What do I have to pay after a claim?
Almost every insurance policy has an ‘excess’ – the first part of a claim that the policyholder has to cover. Sometimes this can be £100 or less. Sometimes it can be more than £1,000. In theory the higher the excess the lower your premiums should be and you need to work out if the saving you make when you pay for the policy are enough to compensate you for the lower payout you will collect if you ever have to claim. The best policies are up-front about all this, and are clear about the discounts they offer for bigger excesses. If a policy doesn’t make this clear then it may be worth avoiding.