An excess payment is the fixed contribution you are contractually required to pay on each and every occasion you claim for repairs to your vehicle through your car insurance policy. There are 2 types of excess that can be applied to your policy:-
• Compulsory – where your insurance provider will only supply the necessary insurance cover if you agree to pay this amount should you claim on your policy.
• Voluntary – where your insurer agrees to discount the premium you pay in return for you agreeing to pay an agreed contribution towards any repairs to your vehicle if you claim.
The amount of compulsory excess you will be required to pay will depend on a number of factors such as:-
• Your age
• Your driving experience (new drivers are likely to attract a higher excess that say someone who has been driving for a number of years without incident)
• Your previous driving history (whether you have had previous accidents or convictions)
• Whether you have any medical conditions that may affect your ability to drive (certain medical conditions may increase your excess)
• The model of car you are driving
• A combination of any/all of the above
A voluntary excess is generally available to all policyholders, even those subject to a compulsory excess. You could generally expect to receive somewhere between 5 and10% off the insurers normal premiums in return for taking say a £100 voluntary excess. This could increase a little more if you agree to take an even larger voluntary excess of say £250.
Following a claim, you normally pay this excess direct to the repairer when you collect your car. Repair specialists recommended by your insurers tend to provide a 2-3 year guarantee on their work so it is always woth checking this out.
Normally the payment is made directly to the accident repair garage when you collect the car. If your car is declared to a write off (it is not considered economical for repair), your insurer will deduct the excess from the settlement payment it makes to you.
If the accident was the other drivers fault, and this is accepted by the third party’s insurer, you will be bale to recover your excess from their insurer