Excess
Invariably, you will be expected to pay the first part of an insurance claim - known as the excess. This may be the first £50 or £100, but irrespective, this device ensures policyholders bear a part of the loss so that small claims are not made. The benefit of this system is a reduction in administration for the insurer while providing the policyholder with an incentive to avoid losses.
Sometimes, when seeking motor or contents insurance, it is possible to reduce the level of the premium by accepting a higher excess. This can be useful to a policyholder wanting to keep insurance costs to a minimum.
It's always worth checking 'excesses' when reading the finer points of an insurance policy. For example, some travel cover policies may exclude the first £50 of a claim on each item!