Question: what is 'excess' under a third party insurance cover?
Answer: Your insurer will pay the full amount for the third party's $8,000. In some cases, you will find terms such as Excess: $500 (Section 1 & Section 2 separately), where Section 2 in the policy deals with third party claims. This means that if there is an excess in Section 2, it will apply to any third party claim.