An Excess Insurance provides an insurance policy holder (insured) to pay towards a claim or less coverage and/or higher limits. Most insurance company (insurer) allows to increase insured’s excess to reduce the insurance premium. In car insurance business, a compulsory excess is applied to a young or inexperienced driver, and an additional excess to pay for a luxury or high-performance car. A voluntary excess covers an amount of excess to be paid by insured. (Refer to the Deductible)
Related Definitions in the Project: The Bond and Insurance
