No matter what the policy, every individual is required to agree to some degree of excess when buying car insurance. What it means is that if you are involved in an accident and your car requires repairs, you will pay that fixed amount of the bill. If you caused the accident, the money is non-recoverable. However, if the accident was caused by someone else, then the third party insurer will refund your out of pocket payment. If your car is written off, your insurance company will subtract the amount you are liable for from the amount your receive for the value of your car.
Life is never simple. Many uninsured drivers travel on British roads and highways. What happens to your claim if you’re involved in an accident with an uninsured driver?
Vehicle insurance is mandatory for all vehicles driven in UK roads. There is a rule in the road traffic act which clearly states the above. This insurance policy comes in the aid of drivers when they meet with an accident due to driver negligence by taking care of there payments .But the sad fact is drivers ignore the benefits of this policy whereby resulting in having to pay hundreds of pounds from there own pocket.
A recent study conducted by the Department of Transport estimates that up to 5% of drivers on the road are uninsured, and uninsured drivers have a higher probability of being involved in accidents. When an uninsured driver is at fault for an accident, the Motor Insurers’ Bureau pays the injured party for damages. Unfortunately, the Motor Insurers’ Bureau is funded by car insurance companies, who then pass on the additional costs to consumers in the form of higher insurance premiums.
Compulsory Excess — the least amount you are required to pay for damages to your vehicle insurance companies. Based on factors such as driving record and age, this is amount is set when the coverage is purchased. On average the amount is £100 but depending on your driving record and age the deductible can range from as little as £50 to as much as £500.
There are a few ways to save money on an auto insurance policy, such as voluntary excess. This is the amount that is well over the mandatory amount your insurer has set, and you are able to pay. The voluntary excess benefits you by lowering your premiums and it lower the amount the insurer will have to pay on a claim. This money saving feature is not offered by all insurers.
Car repair shops will not release the repaired car until the bill is paid in full. The car owner must pay the entire billed amount, and then submit the documentation to its insurance company for reimbursement of the amounts paid over the deductible. The car owner should obtain a copy of the schedule of work performed from the repairer in case of a dispute with the insurer.
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