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Drivers can save on their car ( mortgage quotes ) insurance by agreeing to a higher excess – this article explains how it works.
Author: Anna Richardson
If you have an accident, you are not at fault, and the third party is not insured,
then you will be reimbursed by the Motor Insurers' Bureau. Who funds them? The ( car insurance quotes ) car insurance industry! That's where some of your inflated premiums end up. You will also find that you'll have to pay the agreed excess yourself, there will be no-one able to refund that for you.
Here's the low-down on the basics about ‘excess':
Compulsory Excess – this is the amount that the ( term assurance ) insurance company regards as the minimum amount that you must pay towards the cost of damages . This is agreed at the outset and depends on a few details you're your age and your driving record. For example, if you are older and have a clean driving record, you could only have to pay a minimum of £50. Those with a more chequered driving history, or those that have not been driving for very long, could feasibly have to agree to pay £500. The average for most drivers is £100 .
Voluntary Excess – this is the amount ( life insurance adviser ) over and above the minimum ‘compulsory' amount set by the insurer that you are prepared to pay. This is an opportunity to lower your premiums, because if you can agree to a high excess, then the insurance company knows it won't have to pay out as much if you need to make a claim. It's one of the few sure fire ways of saving a few pounds on a car insurance policy, but you may not be offered the choice, it depends on individual insurers.
The garage won't give my repaired car back until I give them a cheque for the excess – is this what usually happens?
This is completely normal, and you will have to pay and then get the money back from the third party insurer. Always give the car a good once over to ensure that the repairs have been satisfactorily completed. You also need to keep the receipt to get the excess back from the insurer, and just in case they dispute the charges, get a copy of the repair schedule so the insurer can see exactly what work was completed on your vehicle.
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