☰ ˟
Español Call Us
Logo
  • Home
  • Get A Quote
    • AutomobileImage of right arrow
      • Auto Quote Form (short)
      • SR22 Insurance
    • Business & CommercialImage of right arrow
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
    • Commercial Auto Insurance
    • Final Expense
    • Homeowners
    • Motorcycle
    • Renters
  • Customer Service
    • AutomobileImage of right arrow
      • Request ID Card for Auto Policy
      • Request Declaration and Coverages Page for Auto Policy
      • Send Declaration and Coverages Information to Lien Holder
      • Add Vehicle to Existing Auto Policy
      • Remove Vehicle from Existing Auto Policy
      • Add Driver to Existing Auto Policy
      • Remove Driver from Existing Auto Policy
  • Blog
  • Make a Payment
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Low Rate Insurance of Texas
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Get A Quote Auto
Get A Quote Homeowners
Get A Quote Renters
Get A Quote Business
Get A Quote Life
Get A Quote Motorcycle
Home > Blog > What is Excess in relation to Car Insurance?

contact us!
FRIDAY, JANUARY 18, 2013

What is Excess in relation to Car Insurance?

When first purchasing auto insurance there’s a lot jargon that can be confusing. First off, you must know about an excess. An excess is a fixed amount of money that has to be paid every time car repairs are paid for by the insurance policy.

There are two different kinds of excesses.

  • For one, there’s a compulsory excess which is the smallest excess payment that your insurer will agree to take. This differs according to your own personal demographic, driving record, and of course, insurance company.
  • A voluntary excess is an excess that you agree to pay on top of the compulsory excess in case of a claim on the policy. A bigger excess reduces financial risk for the insurer, and thus they can offer lower premiums.

Depending on the locality of the insurer, premiums may be mandated by the government or based on statistics. The premium can depend on many different factors that the insurer has found to statistically affect the cost of future claims including age, driving history, gender, and purpose of the car. We will provide some demographic data that can affect your auto insurance premiums.

  • Gender - Studies have shown that men average more distance driven per year than that of women, and therefore, have a higher proportionality of accident involvement. Insurance companies, in turn, tend to offer lower premiums to women as opposed to men
  • Age - Since teenage drivers have no driving record, it follows that they would be less experienced on the road. Insurance companies, then, offer these young higher driving premiums. Teenagers can then lower their driving premiums by going through further driving training than what was required to obtain a license.
  • Car Usage and Purpose - The more you use your car, it can be deduced, the more potential for accidents, and, thus, more potential for claims on the policy. Insurers are able to estimate car usage by GPS, OBDII (OnBoard Diagnostic) based systems, and odometer. The GPS system tracks the usage of the car as it travels and records the distance it has traversed. The OBDII system functions by using the TripSense device which connects to a computer’s OnBoard Diagnostic port that was built in all cars after 1996. With the odometer, customers can buy prepaid insured miles and maintain a track of them on their odometer to determine when they need more.  

With all of these factors, an agent’s advice can help you clear the air about what you and your family need from a car insurance policy. Call one of our agents today to learn the intricacies of your Arlington auto insurance situation and find a policy that’s right for you at 817.635.0375.

Posted 2:50 PM

Tags: insurance, car insurance, arlington auto insurance, arlington, tx, excess, compulsory excess, voluntary excess
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012

  • arlington(13)
  • insurance(10)
  • texas(9)
  • arlington auto insurance(8)
  • auto insurance(8)
  • arlington home insurance(7)
  • motorcycle insurance(7)
  • low rate insurance agency(7)
  • renters insurance(7)
  • home insurance(5)
  • arlington motorcycle insurance(5)
  • arlington car insurance(5)
  • arlington renters insurance(4)
  • grand prairie auto insurance(4)
  • business insurance(4)
  • car insurance arlington texas(3)
  • mansfield auto insurance(3)
  • auto insurance arlington texas(3)
  • car insurance(3)
  • fort worth(3)
  • arlington business insurance(3)
  • arlington tx car insurance(3)
  • coverage(3)
  • arlington texas car insurance(2)
  • auto insurance grand prairie(2)
  • dallas(2)
  • car insurance arlington tx(2)
  • homeowners insurance arlington texas(2)
  • arlington sr22 insurance(2)
  • car insurance grand prairie texas(2)
  • turkey day giveaway(2)
  • holiday meal(2)
  • car insurance arlington(2)
  • arlington insurance(2)
  • thanksgiving(2)
  • dfw(2)
  • auto insurance arlington tx(2)
  • low rate insurance(2)
  • engine(1)
  • no texting while driving(1)
  • battery(1)
  • auto(1)
  • auto insurance arlington(1)
  • declarations page(1)
  • grand prairie renters insurance(1)
  • insurance discounts(1)
  • compulsory excess(1)
  • voluntary excess(1)
  • grand prairie car insurance(1)
  • dallas sr22 insurance(1)

View Mobile Version
Insure Your Needs
Resources
Products
Our Carriers
About Us
Blog
Employees
Contact Us
Contact Us
1900 E Abram St.
Arlington, TX 76010

P: 817-635-0375
© Copyright. All rights reserved. Powered by Insurance Website Builder.