Do I have to pay an excess? Most policies require that you pay an excess unless the cost of the excess can be recouped from the other driver who caused the accident. So basically if it wasn't your fault and you got the driver who was at fault's details.
Most policies need you to pay an excess, unless an exception applies. Most policies have an excess you need to pay, and it may not matter whether you are at fault or not. Your insurance Product Disclosure Document (PDS) sets out when you don't have to pay an excess, or when your excess is refunded.
In some situations your insurer may waive any excess that applies, and under some policies there may be no excess at all. For instance, if you are involved in a car accident your insurer may waive the excess if you were not at fault and you can provide the name and address of the person who was.
An insurance excess is the amount you need to contribute when you make an insurance claim. Generally speaking, you always need to pay the excess when you make an insurance claim (even if you're not at fault), but insurers usually agree to waive the excess under specific circumstance.
You usually have to pay every time you make a claim, but not always. For example, if you were in a car accident that wasn't your fault, you wouldn't be expected to pay – or your excess would be refunded. Some insurers may have different excess amounts under a single policy.
In excess of means more than a particular amount.
Excess insurance provides additional financial limits above those covered by the underlying policy. Unlike umbrella policies, excess insurance does not expand the terms, or scope, of the underlying policy, but rather, covers higher limits to safeguard against unforeseen, catastrophic claims and loss.
Do I have to pay an excess? Most policies require that you pay an excess unless the cost of the excess can be recouped from the other driver who caused the accident. So basically if it wasn't your fault and you got the driver who was at fault's details.
Why do you pay an excess? Insurers use excesses as a way to make sure that you do not claim for every small loss. They do so not only for their own benefit but for all policyholders to ensure that insurance does not become unaffordable. Insurance should be there for when you cannot afford to pay for a loss yourself.
Let's say you have a collision and your car requires repairs costing £5,000. If your excess is £500, the insurance company will only pay £4,500 to the repair shop, leaving you to pay the remaining £500.
Is a higher voluntary excess worth it? In the long run, an increased voluntary excess will save money on your premium as a high voluntary excess will usually reduce your insurance premium. However, in the event of a claim, those savings may be reduced or even wiped out.
Do you have to pay insurance excess if you hit a kangaroo? You may be required to pay an excess which varies depending upon the type of policy you have. This depends on what your policy says. If you do have to pay an excess, you need to consider whether it's worthwhile pursuing the claim.
To put it clearly, let's give you an example: Suppose your hospital treatment amounts to £2,500, and you agreed to a policy with a £250 excess. That means you would need to pay £250, while your current health insurance provider will pay the remaining health care costs of £2,250.
Your insurance company will pay for your damages, minus your deductible. Don't worry — if the claim is settled and it's determined you weren't at fault for the accident, you'll get your deductible back. The involved insurance companies determine who's at fault.
But a no-claims bonus is only relevant at the annual renewal of the policy. If it's been found that you weren't at fault for the accident by the renewal date, your no-claims bonus won't be affected, regardless of whether the claim is closed or not.
In situations where a known at-fault driver doesn't have insurance, or doesn't have enough, you can file a lawsuit and try to recover compensation from the driver's personal assets. But recovering compensation from an individual, as opposed to an insurance company, is a challenging and complex legal process.
The amount and types of excess you have to pay will be stated on your certificate of insurance. If you are in financial difficulty and cannot afford to pay the excess for an insurance claim, the insurer may reject your claim leaving you with a large repair bill you have no way of paying. How can FOS help you?
As a general guide, standard excesses tend to range from around $200 up to $700, but could be higher or lower depending on your circumstances.
The more you drive the higher the chance that you may be involved in a collision, even if you do all of the right things and are considered a safe driver. If so, it may be better to opt for a lower excess. This way, you'll pay less if you need to make a claim – although your premium will be higher in the short term.
You'll need to pay an excess if: you or the person driving your vehicle was at-fault in an incident. the incident wasn't your fault but you don't have the details of the at-fault party.
As each year passes without you placing a claim you will move up on the discount level until you reach the maximum level of the 65% no claim bonus. Most policies keep 60% as the highest no claim bonus when you take out a new policy.
65% Claim Free Privilege1 is earned after you've had a 60% No Claim Bonus1 for one claim free period. 65% Claim Free Privilege Plus1 is earned after you've had 65% Claim Free Privilege1 for one claim free period. This includes free No Claim Bonus Protection.
For example, if your general liability insurance limit is $1 million and you're sued for $1.5 million, an excess liability policy would cover the $500,000 that's not covered by your underlying general liability insurance.
Usually, agreeing to pay a higher excess will get you a cheaper insurance policy. Providers will often offer different price tiers based on the amount of excess you're willing to pay. If you're willing to pay a higher excess, they'll generally lower your quoted premium.
It's similar to having an additional insurance policy on top of your existing coverage. For example, if you had $2 million in general liability insurance and faced a $2.75 million claim, you and your business would have to cover the $750,000 that exceeds your general liability limits.