What does pay in excess mean?
Asked by: Conrad Dietrich MD | Last update: July 22, 2025Score: 4.2/5 (64 votes)
What does it mean when you have to pay excess?
An excess is an amount that you must pay towards each claim you make. An example: Imagine your car is damaged in a covered accident and needs $3,000 of repairs. If your policy has a $500 excess, then you'll need to pay the $500 excess and your car insurance will cover the remaining $2,500 for the cost of repairs.
What is meant by paid in excess?
Excess Payment means, with respect to a Receivable and a Collection Period, the amount, if any, by which the Actual Payment exceeds the sum of (i) the Scheduled Payment and (ii) any Overdue Payment.
What is paying excess?
Insurance excess is a pre-agreed amount of money that you need to pay to your insurance provider in the event of a claim, such as a car accident or a flood at home. In many cases, you'll be asked to pay the excess immediately so that the claim process can begin.
What is an excess and why is it paid?
1. The excess amount is the first amount payable by you when your claim is settled or paid out. 2. It serves to motivate you to be more responsible, to take better care of your valuables and to prevent small, petty claims.
What is an insurance excess?
What is excess payment?
Again here, the amount that is paid by the customer in excess is Excess Payment. It can also be told as the amount that is taken as the initial installment. This could also be a lump sum amount which can be redeemed in the due course of subscription for further invoices payment.
What does $100 excess mean?
Excess is the amount of money you agree to pay should the unfortunate happen and you need to make a claim to your insurer.
What does $5000 excess mean?
So, if your car has been damaged in an incident, and the repair bill comes to $5000, you will pay for the first portion of the repair bill with your excess. If your excess is $500, the insurance company will pay for the remaining $4500. This doesn't mean you always have to pay the excess if you have an accident.
What is the purpose of an excess?
An excess (also known as a deductible) is an amount the policy holder must pay if they proceed with making an insurance claim on their insurance policy.
What does in excess mean in money?
adjective [ADJECTIVE noun] Excess is used to describe amounts that are greater than what is needed, allowed, or usual.
What is money paid in excess called?
OVERPAYMENT Synonyms: 17 Similar and Opposite Words | Merriam-Webster Thesaurus.
Does excess mean extra?
Excess means 'more than required/allowed', whereas extra simply means 'more', with the context providing the comparison.
What does in an excess mean?
phrase. In excess of means more than a particular amount.
What happens if you can't pay excess?
If you do not have the money available to pay the excess your insurer may refuse your claim or it might deduct the amount from what it pays towards the repairs. For example, if you make a claim for damages worth £2,000 but cannot afford to pay the £250 excess, your insurer will only pay the remaining £1,750.
What does it mean to be in excess?
: in overly large amounts.
How to get out of paying excess?
You should explain that you are in financial difficulty and cannot currently afford to pay the excess but that your claim is otherwise covered by your policy.
Is it good to pay excess?
Car insurance excesses deter people from making lots of claims for minimal damage (like a cracked door mirror). By reducing low-value claims, it helps to keep the overall cost of insurance down for everyone.
Why do people pay excess?
A car insurance excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim – which in turn helps keep your premiums down.
What is the meaning of excess payment?
An “excess payment” is a bad check or otherwise phony money transfer for way too much money was “accidentally” or “by mistake” sent to a merchant or sometimes an individual, in the hopes of duping said victim into returning the “excess” money using a good check or otherwise valid money transfer.
How does excess work?
In simple terms, car insurance excess is the amount you agree to pay towards the repair of your car if you need to make an insurance claim. So, if your car's damaged in an accident, there'll be a set amount you'll have to pay towards the repairs and your insurer will cover what's left of the cost.
Do I pay excess if not at fault?
You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.
Do you pay excess before or after repair?
You pay your car insurance excess when you make a claim on your car insurance policy, on a per-incident basis. This means you need to lodge a claim and pay an excess for each separate incident. In most cases, for example if repairs need to be made to your vehicle, you will need to pay the excess before work can begin.
What does 100 excess mean?
If you have an excess on your policy and you make a claim, your excess is the amount you'll pay towards your treatment. So, if you have an excess of £100, and you need a consultation that cost £200, you will pay £100, and your insurer would pay the remaining £100.
How do you calculate excess money?
The estimated excess cash balance is determined by taking the total available cash and related assets (1) and subtracting from it both the working capital allowance (2) and the margin of compliance (3). If the remaining amount is negative, the entity does not have an excess cash balance.
What does excess mean money?
adjective [ADJECTIVE noun] Excess is used to describe amounts that are greater than what is needed, allowed, or usual.