What is an insurance excess?

Answer 1

An 'excess issue' is where the at-fault party's liability limits are not sufficient to cover the damages that they had caused; A good example of an excess issue is a "chain-reaction" type of accident, like vehicle 1 rearends vehicle 2, pushing vehicle 2 into vehicle 3, pushing vehicle 3 into vehicle 4, etc. If the driver of vehicle 1 only has $25,000 in liability coverage, and vehicle 2 is a brand new Ferrari and the Ferrari is totalled, there is an excess issue because their insurance is not sufficient to cover all the damages (like to vehicles 3 and 4). If you are involved in an excess issue, the easiest way through it is to have your insurance company handle your damages if you have comprehensive or collision coverage; If you don't, or if you are just so stubborn that you think that the At Fault party should have to pay no matter how little money they can give you, be prepared to wait and also be prepared to have to accept a compromised settlement. The at-fault party's insurance compay can only be compelled to pay the limits of the insured's policy and they will usually pro-rate the amount of money to each party depending on the severity of all the damages. You will likely have to sue the at fault party themselves if you want more money.