Is Deductible the Same as Excess? Understanding Insurance Terms Explained

Learn the difference between deductible and excess in insurance, and how these terms impact your claims in the US and UK.

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Deductible and excess refer to the same concept but are used in different contexts. Both terms describe the amount you must pay out of pocket before your insurance policy covers the remainder of a claim. In the U.S., it's commonly called a 'deductible,' while in the U.K. and other parts of the world, it's known as 'excess.' The key point is they both represent your share of financial responsibility in the event of a claim.

FAQs & Answers

  1. What is the difference between a deductible and an excess in insurance? Deductible and excess refer to the same concept but differ by region. A deductible is the amount you pay out of pocket on a claim in the U.S., while excess is the term used in the U.K. Both represent your share before insurance coverage applies.
  2. How does a deductible affect my insurance claim? The deductible is the amount you must pay towards a claim before your insurance provider covers the remaining costs. A higher deductible usually means lower premiums, but you'll pay more out of pocket when making a claim.
  3. Is excess applicable in all types of insurance? Excess typically applies to various insurance policies including car, home, and health insurance, indicating the amount a policyholder pays before the insurer covers the rest.

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