The differences: compulsory & voluntary excess in insurance - Tech Collective

The differences: compulsory & voluntary excess in insurance - Tech Collective

Insurance, by its nature, is meant to manage financial risk. But even with coverage, policyholders often have to share part of the burden.  The idea behind excess in insurance was born because of this burden. It’s the amount that you need to pay out of your pocket before your chosen insurer contributes to a claim.  There are two main types: compulsory excess and voluntary excess. These two might sound similar, but they play very different roles …