Excess is the amount your insurer will ask you to pay if you decide to make a claim on your policy. It’s a way of you accepting a small portion of the risk yourself.
Many policies include an excess and the amount of the excess is specified in your policy.
How does it work?
Your policy indicates that the insured will pay an excess of Ksh10,000 when the insured event occurs. If your car was damaged in an accident and the cost for repairing the damage is Ksh40,000, you will be expected to pay the first Ksh10,000 and the insurer would pay the remainder.
Not every type of policy has the same kind and level of excess. Your insurer may have different types of excesses, and some policies may have more than one applicable excess. Read your policy to understand.
Your insurer may also offer excess protector- this is an additional payment that you make together with your premium to keep you from paying the excess fee.
You may also choose to pay a higher excess amount than what your insurer prescribes. In this way, you are taking on more of the risk yourself, and that way the cost of your premium can be lower.