An excess payment is the fixed amount you have to pay each time your car is fixed through your car insurance policy. Most of the time, the payment is made directly to the garage when you pick up the car. If your car is deemed a "write-off," your insurance company will take the agreed-upon excess out of the settlement money it gives you.
If the other driver caused the accident and their insurance company agrees, you won't have to pay anything.
An excess payment is the fixed amount you have to pay each time your car is fixed through your car insurance policy. Most of the time, the payment is made directly to the garage when you pick up the car. If your car is deemed a "write-off," your insurance company will take the agreed-upon excess out of the settlement money it gives you.
If the other driver caused the accident and the other driver's insurance company agrees, you can get your excess back from the other driver's insurance company. What if the other driver does not have insurance?
Section 143 of the Road Traffic Act of 1988 tells all drivers that they must have insurance to cover any damage they cause to other people. Even so, many people still drive without insurance. Estimates of how many people drive without insurance in the UK are hard to come by, and drivers who break the law have every reason to keep quiet about it.
The Department of Transport has done some math and found that about 5% of vehicles in the UK are driven without valid insurance. This group of people not only makes honest drivers pay more for insurance because they cause premiums to go up, but they also put other drivers in danger by being on the roads. So, driving without insurance is becoming more and more of a big social problem.
But driving without insurance hurts more than just yourself. If you get into an accident with a driver who doesn't have insurance and it wasn't your fault, the other driver's insurance company or the Motor Insurers' Bureau will pay for the repairs. So, if you get into an accident with a driver who doesn't have insurance, your car will get fixed, but you'll still have to pay the excess, and you won't be able to get it back from anyone.
What is a required extra?
A mandatory excess is the least amount of excess payment that your insurance company will accept on your policy. Minimum excesses do change depending on who you are, how you drive, and what insurance company you have. Today, the average excess is around GBP100, but younger drivers may have to pay up to GBP500, while older, more experienced drivers with a good driving record may only have to pay GBP50.
Then, what is a Voluntary Excess?
If you want to pay less for your insurance, you could offer to pay a higher excess than what your insurance company requires. Your voluntary excess is the amount you agree to pay on top of the required excess if you make a claim on the policy. Since a higher deductible lowers the financial risk for your insurer, they can offer you a much lower premium.
My car has been fixed, but the garage won't give it back to me until I pay the policy excess. Is that true?
Yes, that's how things usually work. But when you get the car, make sure to check it over. Make sure that the repair is done right. Then, make sure you keep their receipt for your excess payment, as you will need it if you want to claim against a third party's insurance. Make sure the repair shop gives you a repair schedule, just in case there's a disagreement. This will tell you what was done to fix your car.
