Auto insurance, Gap insurance, Health insurance, Income protection insurance, Casualty, Life, Burial insurance, Property, Liability, Credit, Other types, Insurance financing vehicles, Closed community and government self-insurance,
Voluntary excess
To reduce the insurance premium, the insured party may offer to pay a higher excess (deductible) than the compulsory excess demanded by the insurance company. The voluntary excess is the extra amount, over and above the compulsory excess, that is agreed to be paid in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by the insurer, the insurer is able to offer a significantly lower premium.