Is this car insurer trying to screw me over?
Discussion
The cheapest car insurance I can find has a 1.5K excess on it. The insurer shows the following terms before I buy:
XS Direct
Please read the below before continuing to our site.
No Claims Bonus, This policy does not give you a NCB discount so proof of NCB is not required.
This policy provides you with COMPREHENSIVE cover.
The total policy excess is £1500.00. This is an All Sections Excess.
Usually a policy excess will only be applied if you the policyholder are claiming against your policy; for damage to your own vehicle, or for a fire or theft claim.
However an All Sections Excess applies to ANY claim made against your policy, whether it is by you, or a third party.
So, even if you are not claiming, or are not covered, for damage to your own vehicle, you could be asked to make a contribution towards a claim that another party is making on your policy.
The following applies if you fail to repay the Excess Amount in the event of a claim:
Interest on the Excess Amount due to be repaid to the Company shall accrue from the date when payment becomes due (the date when you are notified for payment) daily until the date of payment at a compound rate of 2.5% per calendar month. For example, if an excess of £3,000 is due, after one month the amount due is £3,075 and after 3 months £3,231. Interest is added after as well as before any judgement.
If you do not repay the Excess Amount when it is due, you will have to pay any costs the Insurers incur in trying to obtain payment, such as solicitors’ and collection agency costs.
If you have not repaid the Excess Amount after 30 days, you will also have to pay insurer administration fees of the greater of £20 or 10% of the amount overdue (up to a maximum of £200).
The insurers guarantee not to increase your premium as a result of a claim against your policy providing no other details have been changed.
The insurers do not have a No Claims Bonus system. At renewal they issue a Certificate of Claims Free Driving with them or detailing any claims on the policy.
If over 25 this policy does cover you to drive other vehicles third party only, and you are in receipt of your certificate/schedule of insurance.
This policy does cover you to drive in Europe, on a THIRD PARTY ONLY basis; this can be upgraded to fully comp for £75 a week if required.
The main exclusion from this policy is theft of the vehicle or any of its contents if it is unlocked and unattended.
This is my first time buying insurance so im not too sure what all this means. Can someone please help me get through this jargon?
Thanks.
XS Direct
Please read the below before continuing to our site.
No Claims Bonus, This policy does not give you a NCB discount so proof of NCB is not required.
This policy provides you with COMPREHENSIVE cover.
The total policy excess is £1500.00. This is an All Sections Excess.
Usually a policy excess will only be applied if you the policyholder are claiming against your policy; for damage to your own vehicle, or for a fire or theft claim.
However an All Sections Excess applies to ANY claim made against your policy, whether it is by you, or a third party.
So, even if you are not claiming, or are not covered, for damage to your own vehicle, you could be asked to make a contribution towards a claim that another party is making on your policy.
The following applies if you fail to repay the Excess Amount in the event of a claim:
Interest on the Excess Amount due to be repaid to the Company shall accrue from the date when payment becomes due (the date when you are notified for payment) daily until the date of payment at a compound rate of 2.5% per calendar month. For example, if an excess of £3,000 is due, after one month the amount due is £3,075 and after 3 months £3,231. Interest is added after as well as before any judgement.
If you do not repay the Excess Amount when it is due, you will have to pay any costs the Insurers incur in trying to obtain payment, such as solicitors’ and collection agency costs.
If you have not repaid the Excess Amount after 30 days, you will also have to pay insurer administration fees of the greater of £20 or 10% of the amount overdue (up to a maximum of £200).
The insurers guarantee not to increase your premium as a result of a claim against your policy providing no other details have been changed.
The insurers do not have a No Claims Bonus system. At renewal they issue a Certificate of Claims Free Driving with them or detailing any claims on the policy.
If over 25 this policy does cover you to drive other vehicles third party only, and you are in receipt of your certificate/schedule of insurance.
This policy does cover you to drive in Europe, on a THIRD PARTY ONLY basis; this can be upgraded to fully comp for £75 a week if required.
The main exclusion from this policy is theft of the vehicle or any of its contents if it is unlocked and unattended.
This is my first time buying insurance so im not too sure what all this means. Can someone please help me get through this jargon?
Thanks.
Jesus Christ.
I'm no expert, but that is the most phenomenal set of terms I've ever read through. I'm surprised it's even possible to bring that to market. Absolutely brutal shafting in every direction - avoid like the plague, unless you can afford to drop £1500 on a claim every year and still be better off than other premiums!
I'm no expert, but that is the most phenomenal set of terms I've ever read through. I'm surprised it's even possible to bring that to market. Absolutely brutal shafting in every direction - avoid like the plague, unless you can afford to drop £1500 on a claim every year and still be better off than other premiums!
McSam said:
Jesus Christ.
I'm no expert, but that is the most phenomenal set of terms I've ever read through. I'm surprised it's even possible to bring that to market. Absolutely brutal shafting in every direction - avoid like the plague, unless you can afford to drop £1500 on a claim every year and still be better off than other premiums!
Well the thing is the next cheapest insurer who doesn't have the £1500 excess is admiral and they cost just over £1500 more then these guys...I'm no expert, but that is the most phenomenal set of terms I've ever read through. I'm surprised it's even possible to bring that to market. Absolutely brutal shafting in every direction - avoid like the plague, unless you can afford to drop £1500 on a claim every year and still be better off than other premiums!
Edited by Looking4aCar on Monday 23 May 14:21
ctid said:
said:
No Claims Bonus, This policy does not give you a NCB discount so proof of NCB is not required.
Wouldn't be too happy with that either!I wouldn't touch them with a barge pole, not only do they hike on a massive excess, but then detail many different ways of absolutely hammering you should you fail to repay the excess straightaway - seems to me as if this is a real moneymaker for them. The NCB stuff sounds very fishy too, why can't they issue NCB proof?
StottyZr said:
ctid said:
said:
No Claims Bonus, This policy does not give you a NCB discount so proof of NCB is not required.
Wouldn't be too happy with that either!StottyZr said:
ctid said:
said:
No Claims Bonus, This policy does not give you a NCB discount so proof of NCB is not required.
This being the case, I'd take the cheaper premium for one year only and bank the premium difference in case of a claim.
eybic said:
Agreed. What they are saying is "we don't want to insure you so will give you silly t's & c's and an extortionate excess" definately try another company.
These are their standard terms of business not jut for the OP. They seem to have a strange business model, take a lookhttp://www.xsdirectinsurance.co.uk/step1.php
There are a few of these emerging of late, it is an interesting business model. Have seen higher excesses that that as well.
The key point is the All Sections Excess. Unlike 99% of private motor insurance policies, *YOU* contribute £1500 if someone claims from you. Although legally it doesn't work like that (they can't force you to pay the TP) they will treat it like a loan.
Screwing you over ? Well, not really. They are selling a very very specific product, i.e. one that is as cheap as possible. The customer service will be no frills, however it is "backed" by Hannover Re, who are one of the largest re-insurers in the world.
Not worth it for everybody, but maybe for some ? However.....you get what you pay for !!
The key point is the All Sections Excess. Unlike 99% of private motor insurance policies, *YOU* contribute £1500 if someone claims from you. Although legally it doesn't work like that (they can't force you to pay the TP) they will treat it like a loan.
Screwing you over ? Well, not really. They are selling a very very specific product, i.e. one that is as cheap as possible. The customer service will be no frills, however it is "backed" by Hannover Re, who are one of the largest re-insurers in the world.
Not worth it for everybody, but maybe for some ? However.....you get what you pay for !!
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