p>An excess is an amount agreed between you and the insurer that you’ll pay in the event of a claim. For example, if you agree on an excess of $600 with your insurer, and your claim is for $2,000, you’ll need to pay the first $600, and your insurer will pay the remaining $1,400. Depending on the insurer, you may be able to choose a higher excess so you can lower your premium.</p