Is motor Insurance excess necessary?

Hi All,

I'm looking to renew my car insurance in Feb'2010. I just wanted to know, is car excess really a necessity to take out? I am having 1990 - Maruti 800. My car worth is very less, so I don't want to take excess. Pls advice.

Regards,
Varun

Excess is necessity now a days, as insurer wants to avoid small claims. Small claims increase their admin and manpower cost. In most of the policies normally excess is Rs.500/- for each and every claim. You can increase it but can't reduce it.

I have read in the forum that you will get a discount when you opt for excess. How much excess is good to save premium and keep the mandatory cover, so that you would not bear much loss in case of loss.

Quote:

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Originally Posted by chandrasekhar

I have read in the forum that you will get a discount when you opt for excess. How much excess is good to save premium and keep the mandatory cover, so that you would not bear much loss in case of loss.

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Min Rs. 500/- excess is mandatory for all the car insurance. If you increase it from here you would get, discount in the premium accordingly. Its individual choice - how much risk you can bear for each and every claim?

Check yourself on the online calculators on policybazaar.com.