An excess payment is also known as the money you must pay whenever your car insurance covers the repair of your vehicle. You’ll typically make this payment to the auto shop that you go to when you pick up your car. However, if your car is totaled, the excess is deducted from the value of the car, and the remainder is paid to you.

If you are in an accident, and your insurance company and the insurer of the other driver agree that it was caused by the other driver, you will be compensated for any damage to yourself or your property from the other driver’s insurance company. However, what if the other driver did not have insurance? Under Section 143 of the Road Traffic Act, passed in 1988, if you are driving a car, you must have auto insurance to protect yourself against any damage you may cause while driving. Still, many people choose to ignore this law. It is difficult to estimate how many drivers do not have insurance in the United Kingdom, since many of the rule breakers never have to reveal this fact.

According to the Department of Transport, driving without insurance in UK is now considered a social problem there since 5% of the vehicles are not insured. They are putting insured drivers at risk with their high premiums.

Driving without car insurance is not a victimless crime. If an accident has occurred with an uninsured driver and the accident was not your fault the repair cost will be paid by the Motor insurer’s Bureau who has funded entirely by the industry or by your insurer. Therefore if you have met with an accident which is caused by an uninsured driver than the car will be repaired but still you have to pay the excess amount and their will be no one reclaim your excess form.

Insurance companies vary in the minimum excess payment they will accept, but it usually depends on your driving history and age. The average excess is around 100 pounds, but a long, successful driving record may garner a much lower amount and young people with limited driving experience and immaturity may pay a very much higher amount.

You can usually obtain a lower rate on your insurance premium by voluntarily increasing the amount of excess you agree to pay in the event of a claim of you policy. Since this lowers the financial risk assumed by the insurance company, they can afford to offer you a reduced premium.

When taking delivery of your car after getting it repaired at a garage, confirm yourself that the repair is faultless. Also ensure that their receipt for excess payment is obtained. For, you may need it in case you recover a third party’s insurance. It will be better to insist on the repair schedule issued by the garage, should there be a row. This will record the whole history of the repairs made to your vehicle.

Filed Under Car insurance
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