The main types are :
- A Compulsory excess : this is the amount that the insurer applies to all policies of your type and which can’t be removed.
- A Voluntary excess : this is an amount you choose to pay in order to reduce your premium. It is important to note that the Voluntary Excess applies in addition to the Compulsory Excess. So in the previous example where repair costs are agreed at £1,250, if the Compulsory Excess was £500 and you had agreed to take a £300 Voluntary Excess (to keep your premium reasonable) then the Insurer would pay £1,250 – £500 – £300 = £450.
- Young Driver excess : most insurers apply additional compulsory excesses if the driver at the time of the claim was under 25.
Other excesses : check your individual wording to see if there are any other excesses which apply in your individual circumstances. Common examples include :
- a No Traceable Third Party Not Excess, which you would have to pay if your vehicle was involved in an accident and you re unable to provide the details of the Third Party driver involved.
- a Non Selected Repairer Excess : insurers prefer you to take your vehicle into one of their Selected or Approved Repairers. This is a network of garages, specific to each insurer, where the insurers have pre-agreed standards of service (and rates of labour). In order to encourage you to take your car to one of their network members, some insurers will increase your excess if you choose not to.
- a No Photo Excess : it sounds bizarre but some insurers, particularly temporary insurance companies, will increase your excess if you are unable to provide a photo of the vehicle prior to the damage taking place!
Category:
The Essentials