Can you explain what an Insurance Excess is
please? Virtually every motor insurance policy is subject
to what they call a policy excess, this is the amount of money in which a policy holder
will have to pay towards a claim, and it’s the first amount. Over and above that amount
the claim is met in full by the insurance company. Could you explain the different types of excess
on a motor insurance policy please? The different types of excess on a motor policy
are compulsory and voluntary. The compulsory excesses are broken down in to excesses for
accidental damage, fire, theft and windscreen. Virtually every policy has a compulsory excess. In addition to this, young and new drivers,
that’s inexperienced drivers will have additional excess applied on top of that compulsory excess. If my car was witten-off or stolen would I
still have to pay my excess? In the circumstances where the car is a total
loss, either by accident, theft or fire, the excess is an amount that will be deducted
from the value of the car paid to you by the insurance company. If the claim is actually for the repair of
damage to your motor vehicle, you will pay the excess to the repairing garage, on collection
of the vehicle after the repairs have been completed. What is a voluntary excess? A voluntary excess, is an additional excess,
which is on top of the compulsory excesses. This excess is taken voluntarily by the policy
holder, in return for a reduction in premium. Could you explain why I have to pay a young
drivers insurance excess? Young and inexperience drivers have extra
excesses applied simply because of the fact that their inexperience leads to higher incidents
of claims. This is a proven fact, therefor the insurance companies apply this to help
manage the risk. If I wish to claim for windscreen damage,
will I have to pay my excess? Nowadays if you make a claim for a replacement
windscreen, under the windscreen section of a motor policy, there is likely to be a windscreen
excess, much smaller than the actual policy excess.
However for small chip repairs, some insurance companies will not charge any excess, and
will pay the full cost. Do I still have to pay my excess, if the accidents
is not my fault? If you are involved in an accident that is
not your fault, you will still have to pay your excess to the repairing garage initially.
If there is a person responsible for the accident then you will be able to reclaim your excess
from their insurance company. When purchasing motor insurance, it’s very
important to have your provider fully explain and give a break down of the policy excesses
that apply, so there can be no miss-understanding when a claim arrises. This is particularly
important if you are a young or inexperienced driver.