Although filing a car insurance case can be stressful, knowing how to get your excess back can help make it a bit easier. Here are the steps to follow if you’ve been in an accident that results in you needing to file a claim for car insurance.
What is excess car insurance?
The excess amount of car insurance is the pre-agreed amount that a policyholder must pay to their insurer when filing a claim. Insurance providers often ask for excess payments before the claim process can start.
Example Bill’s car insurance policy limits his excess to PS400. To claim the PS1,600 due to him for repairs, Bill will need to pay PS400 to the insurance company if his car is damaged by PS2,000.
How do you get your excess car insurance back?
Although most insurers require excess payments upfront before the claims process can begin, this money doesn’t always go for good. It may be possible to get back excess car insurance depending on the circumstances of the claim.
Let’s take a look at four ways that you can claim your excess car insurance.
#1. If there is an identifiable third party at fault
It is simple to claim back if the third party is directly responsible for the damage. Insurers will usually request that a third-party’s insurer covers their client’s excess as of the claim.
Example Bill’s car is rear-ended by a third party while sitting at a red light. The third-party admits that he was responsible. The third party’s insurance covers Bill’s damages and the PS400 excess.
#2. Unidentifiable third parties may be at fault
Sometimes it might not be possible to identify who caused the damage. Your insurer will typically require that you pay the excess amount in full. If a third party is identified later, you will likely be able to appeal.
Example Bill’s car was vandalized as it parked on the street. The incident is not documented or witnessed by anyone. Bill is not responsible for the incident, but he must pay the PS400 excess to start the claims process.
#3. If you’re at fault
You will need to pay the excess payment if you are responsible for any damages caused by your car insurance claim. These scenarios don’t allow you to recover your excess insurance.
Example Bill walks past a parked car while he leaves for work. Bill accepts responsibility for the car is legally parked. Bill must pay the PS400 excess before his insurance covers the damage to other cars.
#4. It doesn’t matter who it is.
Things can become more complicated if the accident’s circumstances are unclear and the fault is unknown. Your insurance company will likely ask you to pay the excess upfront. The insurer may offer to reimburse you if they feel they can recover the excess payment from another party’s insurance.
Insurers will often waive excess payments when there are ambiguous circumstances. Although claimants may argue that the insurer shouldn’t hold them responsible for excess payments, each case is considered on its merits.
Example Bill scuffs a car illegally parked on the side road while driving past. The car sustains some damage, but it is unclear who is responsible. Bill’s insurance provider decides that Bill’s excess payment will be waived and will reimburse him.
How can you get your excess back?
Car insurance excess payments are usually non-refundable. Sometimes, you can claim back excess insurance payments automatically. Your insurance provider will reimburse you if a third party is at fault if they receive payment from the liable party.
However, in ambiguous situations, you may need to raise your concerns with your insurance provider. When choosing a car insurance policy, you need to consider the excess.
Check out these FAQs for more information on excess car insurance.
Most Frequently Asked Questions
What is the point of excess?
An excess is a cost that you must pay for your car insurance. It allows insurers to safeguard themselves against false or fraudulent claims. People would continue to make claims to win their luck if there wasn’t an excess.
What is the difference between voluntary excess and compulsory excess?
The compulsory excess is a fixed cost and cannot be adjusted. However, Who can pay the voluntary excess on top of it. The lower your insurance premium, the more you pay for your voluntary excess.
Can I modify my compulsory and voluntary excess?
Who cannot change your compulsory excess, but you can modify your voluntary excess.
What happens if you have excess car insurance?
Excess car insurance is paid when you file a claim on your policy. You may be eligible to receive the excess if you are not found to be at fault.
Is it possible to claim back excess insurance?
If you are not at fault, claiming back, excess insurance will not affect your No Claims Discount. You will lose any claims if you are found to be at fault or Who cannot claim the costs from the other party. The Financial Ombudsman can provide more information here.