If you are an owner of car, then it is essential for you to know every detail of car insurance. In this age of Internet you can easily get the quotes of car insurance of different insurance company, but you have to choose one. Without having proper knowledge on the subject you cannot decide prudently. For proper understanding car insurance, you must have knowledge of excess. Excess is nothing but a fixed contribution made by you at the time of car repair under the provision of insurance policy. The payment is made to the garage where you will repair your car after accident. If the accident is the result other driver’s mistake, then there is an opportunity to get back your payment of excess. So excess is one of the important thing you need to understand. This excess can be divided into two categories- compulsory excess and voluntary excess. If individually you don’t know each of them, then you cannot understand their significance.

The minimum amount of excess payment your insurer accepts under your insurance policy is known as compulsory excess. This minimum excess is not constant for every case. It depends upon your driving detail and other personal record and the insurance company from which you have bought the policy. If you want to reduce the rate of premium, you can enhance the excess. That means you need to pay more than compulsory excess to your insurance company. This is called voluntary excess, which you pay above the compulsory excess. A question arises, when we can pay lees under compulsory excess then why shall we pay more? Higher excess always reduces the financial risk of the insurance company. You may ask, why shall I pay for the benefit of the insurance company? If you pay the over the compulsory excess, the insurance company will charge lower premium from you. If you have perfect knowledge about such concepts, your choice will be better.