Which of the following is not a common type of insurance excess for motor vehicle policies?

The correct answer is that "maximum claims excess" is not a common type of insurance excess for motor vehicle policies.

In automobile insurance, an excess is the amount the policyholder must pay out of pocket when making a claim. This serves to reduce the insurer's liability and encourage cautious driving behavior. Common types of excesses include:

• Variable excess: This type varies based on the circumstances of the accident or the driver’s profile (e.g., age, driving history).

• Standard excess: A fixed amount that applies to all claims under the policy.

• Basic excess: Similar to standard excess, this is a predetermined amount that applies when the policyholder makes a claim.

The term "maximum claims excess," however, is not typically recognized within standard motor vehicle insurance practices. Instead, insurers focus on defined amounts of excess that the policyholder will be responsible for before the insurer pays out a claim. Thus, the absence of "maximum claims excess" from standard terminology underscores why it is the most suitable response.