Insurance Excess Question
Discussion
My friend has been involved in and accident. He has quite a sizeable excess.
When reporting the accident to his insurers, he has been advised by them that the excess is recoverable not only if he claims for his own vehicle damage but also against the cost of all third party claims. This would mean that even if he doesn't present a claim for his own vehicle damage, he still has to pay an excess on the cost of the third party claim.
I've previously had experience dealing with RTA claims and have never heard of this before. I've looked over his policy and it seems the insurers have confirmed it in the schedule too.
Does anyone have any experience with this?
When reporting the accident to his insurers, he has been advised by them that the excess is recoverable not only if he claims for his own vehicle damage but also against the cost of all third party claims. This would mean that even if he doesn't present a claim for his own vehicle damage, he still has to pay an excess on the cost of the third party claim.
I've previously had experience dealing with RTA claims and have never heard of this before. I've looked over his policy and it seems the insurers have confirmed it in the schedule too.
Does anyone have any experience with this?
Extremely rare policy and one that's hard to police and enforce as they'll potentially struggle to get the excess out of their policyholder. If he chooses not to pay then they will probably have to spend more to get it ironically. It will leave him with a CCJ though.
That's why the market stopped selling them as a mainstream policy a long time ago.
That's why the market stopped selling them as a mainstream policy a long time ago.
I was thinking about the in's and out's of enforcing the policy.
I presume they'd start to pursue him once they've made payments totalling over his excess. Surely they'd have to wait 6 years in case further specials claims were presented. Or then again if an infant was a passenger it could be up to 21 years before all claims are presented then they'd have to wait for them to be finalised.
I presume they'd start to pursue him once they've made payments totalling over his excess. Surely they'd have to wait 6 years in case further specials claims were presented. Or then again if an infant was a passenger it could be up to 21 years before all claims are presented then they'd have to wait for them to be finalised.
They can chase him as soon as they've incurred more than his excess in cost. The excess is always the first part of a claim.
I'm assuming that the excess is a fixed figure rather than a percentage of ultimate settled cost. It'd be nigh on impossible to collect it if it were, as limitation would be reached on some of the heads of claim in a claim form a minor.
I'm assuming that the excess is a fixed figure rather than a percentage of ultimate settled cost. It'd be nigh on impossible to collect it if it were, as limitation would be reached on some of the heads of claim in a claim form a minor.
Edited by LoonR1 on Monday 23 March 15:10
Sorry, it's one £3k excess which is deductible against any heads of claim whether it be from his own vehicle damage or third party claims. They advised him that even if he doesn't present a claim for his own vehicle damage, they'll still ask for recovery of his excess once a claim has been presented from the third party.
PAV would be around £4-£5k.
PAV would be around £4-£5k.
Well I'm baffled why he'd want it written off. He's got an excess of 60-75% of the value of his car. So if they write it off and deuct salvage he'll be lucky to get anything. If the excess is covered by the TP claim then he'll have a written off car and £3000 at best.
Not sure how that's any better than it being repaired or him not keeping salvage.
Either way I wonder whether he should be on the road with a policy like this following. A an and another crash within his first year back on the road.
Not sure how that's any better than it being repaired or him not keeping salvage.
Either way I wonder whether he should be on the road with a policy like this following. A an and another crash within his first year back on the road.
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