Compulsory and Voluntary Excess in Car Insurance

It is mandatory for every car owner in Singapore to have a valid car insurance policy. There are many car insurance companies in Singapore that you can choose from. They also have policies that differ in terms of insurance payments and the coverage offered.

Commonly people assume that paying large amounts for insurance is unnecessary. They would rather prefer to settle for an insurance policy that has a payment structure that is lesser than the most out there.

However, one would not know about the benefits of having a sound insurance policy until they are in trouble. A sound insurance policy holder would always be covered by the insurance company that they are signed up with.

The same cannot be said about all companies as they might have exceptions to the coverage. This might mean that despite you paying a payment for the coverage there would be a few things that is not taken care of by the car insurance provider.

Compulsory Excess

In almost all cases the compulsory excess is set by the insurance service provider along with their rules and regulations. This is not something that is negotiable or changeable by the car owner at any given point of time. They do not have a choice than to adhere with it.

Voluntary Excess

Some insurances policies that are offered have some additional excesses that give you the option to reduce your car insurance premium. However, voluntary excess is usually something that you are ready to pay on top of what is compulsory and set by the insurance provider with most insurance providers.

Exceptions

There are always exceptions in terms of how much you should pay with voluntary excess. Often this may differ from one state to another and from one service provider to another. You would always have to be aware of these even before signing up for the insurance.

Talking with the insurance agent about these things can give you clarity on excess and other regulations. This can often ensure how much you are likely to spend from your pocked in terms of having to deal with claims and an accident. Clarity is the name of the game.

Reading Policy Guidelines

There are always many advantages in you going through the policy guidelines and regulations. It can often save you excess burden and ensure that you are covered properly. Without knowing these things it is likely that you would find yourself in trouble with claims.