When you make a claim on your horse insurance, you may need to pay an excess. The excess is the amount you agree to contribute toward a claim before your insurance provider covers the remaining costs. It is a standard part of most insurance policies and can vary depending on the type of claim and the insurer’s terms.
Usually yes, but it depends on the terms of your policy. An excess is a set amount that you pay when you make a claim. The excess amount is deducted from the amount paid by the insurer. For example, if you claimed $1,000 for vet fees, and your excess was $100, the insurer would pay out $900.
Types of Excess
Horse insurance policies often have different types of excesses, which are important to understand:
- Fixed Excess: This is a set amount that applies to all claims. For instance, if your excess is $200 and you claim for veterinary fees of $1,000, you would pay the first $200, and your insurer would cover the remaining $800, subject to policy limits and exclusions.
- Percentage-Based Excess: Some policies have an excess based on a percentage of the claim amount. For example, if the excess is 15% and your claim is $2,000, you would pay $300, while your insurer would handle the rest. Percentage-based excesses are more common for older horses or specific types of cover.
- Dual Excess: In some cases, a policy may combine a fixed excess with a percentage-based excess. This means you pay both a fixed amount and a percentage of the claim, which can be a significant cost.
Factors Influencing the Excess
Several factors can affect the excess on your horse insurance policy:
- Horse’s Age: Older horses may have higher excesses because they are more likely to require veterinary care. Insurers often adjust the excess amount as your horse ages.
- Policy Type: The kind of coverage you choose influences your excess. For example, policies covering major medical expenses or surgery may have higher excesses compared to basic mortality coverage.
- Claim History: If you have a history of frequent claims, your insurer might increase your excess or add special conditions to your policy.
- Insurance Provider: Each insurer sets its own excess rules, so it’s worth comparing policies to find one that suits your needs and budget.
How the Excess Affects Your Premium
The excess amount can directly impact your insurance premium. A higher excess generally results in lower premium payments because you are taking on more financial responsibility in the event of a claim. Conversely, opting for a lower excess will likely increase your premiums. It’s important to strike a balance between an affordable premium and an excess you can manage if you need to make a claim.
Claiming on Your Horse Insurance
When making a claim, you should contact your insurer as soon as possible. Provide all necessary documentation, such as veterinary reports, receipts, or any other required evidence. Your insurer will then assess the claim and inform you of the amount you need to pay as an excess. It’s essential to understand your policy terms beforehand to avoid surprises during the claims process.
Situations Where You Might Pay an Excess
Common scenarios that may require you to pay an excess include:
- Veterinary Fees: If your horse needs treatment for an illness or injury, your insurance typically covers the costs after you pay the excess.
- Third-Party Liability: If your horse causes damage or injury to someone else, your insurer may cover the claim after deducting the excess.
- Surgical Costs: Major surgeries often come with high expenses, and you may have to pay a significant excess depending on the terms of your policy.
