Getting back your car insurance excess
By AdFeatures | Tuesday, July 03, 2012, 20:04
When you compare various car insurance quotes you will see that the cost of the insurance premium is affected by the excess on your insurance policy. Here we will look in detail at what is meant by this excess, and two ways of getting it back, the first being through an additional insurance policy and the second being by reclaiming it from the other driver.
Generally there are two forms of excess. The first is called a compulsory excess and as it says it is compulsory. It is a condition of that insurance policy that it you were to make a claim, then you would have to contribute that compulsory excess amount to it.
The other part is called a voluntary excess. It works the same way as the compulsory excess apart from the fact that you can decide how much it should be. If you take out a large voluntary excess then your insurance premium would be lower than if you took out a small one or indeed none at all. Effectively it is how much risk you are willing to take on board for yourself. Should you be involved in a claim, then you would need to contribute the sum of both excess amounts which could be several hundred pounds.
That is all fair enough, but there can be problems with the very high amounts of compulsory excess that some insurance companies impose on younger drivers. Rather than just a few hundred pounds, it can be very much more; possibly as much as £700 or even £900 which could be crippling for a young person.
However, it is possible to take out an additional insurance policy on this excess. Just as with any other insurance policy you will be charged a premium that reflects the assumed level of risk and the amount of excess you wish to cover. When you make a claim it is usual for you to pay the excess directly and to reclaim is from your excess insurance afterwards.
Some excess insurance policies will just insure your car insurance excess, but others will cover you for any excess, for instance your car insurance, your home insurance, your pet insurance, and so on.
If you do not have excess insurance, then it is still possible to reclaim your excess if the accident wasn’t your fault. If you insurance company has dealt with your claim, then it is likely that you will have to pay the excess and lose your no claims discount even if the accident was not your fault. The coast of these taken together can be very high, amounting to perhaps well over a thousand pounds.
If you are able to demonstrate that the fault was not yours but was that of the other driver, then you have a legitimate claim against him, which would be settled by his insurance company. In such circumstances it is worth seeking out the help of a solicitor, but often it is worth the cost. Any claim would be made through the small claims court so there wouldn’t be any expensive court costs.