How Does Car Insurance Excess Work?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    I am not sure exactly what you mean by this question.  My thoughts are that you are referring to a policy that will pay the excess amount if your car is totaled and you still owe more than the car is worth.  For example, you owe $25000 on your car and it is totaled.  The insurance company pays the book, which is $20,000.  Under some polices you are still on the hook for the balance, even though you no longer have the car.  A policy that includes excess would pay off the car completely.
    Answered on May 30, 2013
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