What is an Excess payment?

An excess is the fixed contribution you must make towards the repair of your car when you make a claim on your car insurance policy. This payment is normally made directly to the repair garage when you collect the car. If your car is a write off, your insurance company will deduct the excess from the settlement payment it sends to you.

If the accident is proven to be the other drivers fault, you will be able to claim your excess payment back on the other person’s insurance policy. But what happens if the other driver is uninsured?
We all know that it’s a legal requirement under Section 143 of the 1988 Road Traffic Act to have insurance against third party liabilities. Reliable estimates of the incidence of uninsured driving in the UK are hard to come by and for the obvious reasons, those that are involved in breaking the law have every incentive to keep their activity as private as possible. But calculations by the Department of Transport suggest that around 5% of vehicles in the UK are being driven without valid insurance. Uninsured driving is increasingly being regarded as a major social problem since this group of people not only imposes costs on honest motorists in the form of higher premiums, but their presence on our roads also represents a serious risk to other road users.

Clearly then, driving without insurance is not a victimless crime. The costs associated with the damage to persons and property caused by uninsured drivers are largely paid for by the Motor Insurers’ Bureau which is funded in its entirety by the industry, or by your insurer. Ultimately therefore, if you are involved in an accident caused by an uninsured driver you’ll get you car repaired but you’ll not be able to reclaim your excess.

What is a compulsory Excess?

A compulsory excess is the minimum excess value your insurer will accept on your policy. Minimum excesses do vary by insurance company and according to your personal details and driving record. Whilst the average excess is around £100, younger drivers could be faced with as much as £500 whereas a mature experienced driver with a good driving record, could be asked to pay just the first £50.

What is a voluntary Excess?
In order to keep your insurance premium down, you may volunteer to pay a higher excess than that demanded by the insurance company. Your voluntary excess is the amount over and above the compulsory excess which you agree to pay in the event of a claim on the policy.

My car has now been repaired and but the garage will not release my car until I pay the policy excess to them. Is this right?

Yes, this is the normal practice but be sure to inspect the car when you collect it to satisfy yourself that the repair is perfect. Then make sure you retain their receipt for your excess payment as this will be required if you are reclaiming against a third party’s insurance. Just in case of disputes, it’s also a good idea to make sure you have a repair schedule, which lists all the repairs that were made to you car.

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