A compulsory excess is the sum that your insurer sets and is non-negotiable. This amount depends upon different factors including your age, the type of claim and your car type. The compulsory excess amount is added to the voluntary excess amount to make your total excess should you make a claim.
What does compulsory mean on insurance?
Compulsory insurance is any type of insurance an individual or business is legally required to buy. Compulsory insurance is mandatory for individuals and businesses that want to engage in certain financially risky activities, such as operating an automobile or operating a business with employees.
What does the excess mean on car insurance?
A car insurance excess is the amount that you have to pay yourself if you make a claim. There are two types of excess: Compulsory excess – this is a fixed excess, set by us, which you’ll have to pay if you make a claim. The amount varies depending on your circumstances.
Do you always have to pay excess?
‘Do I have to pay excess if not my fault’: The car insurance claim excess. An excess is usually always compulsory with any car insurance policy. The payment of an excess is necessary to initiate an accident claim if one needs to be made.
What does no compulsory excess mean? – Related Questions
Why is my compulsory excess so high?
If you’re a young, inexperienced driver, your compulsory excess is therefore likely to be higher than someone who’s been driving for a while. The compulsory excess on your policy is also likely to be higher if you drive a valuable or high-performance vehicle such as a sports car.
What happens if I can’t afford my excess?
What if I can’t afford to pay the excess? If you can’t afford to pay the excess your insurer might offer you a payment plan, but they could refuse to process your claim. Always check what excess you’re committing to pay when you take out your policy. Keep it affordable – don’t put your voluntary excess up too high.
Do I pay excess if I damage another car?
Yes – unless you or another driver of your car have a no-fault accident, you have to pay the Basic Excess and any additional excesses that apply.
Who pays the excess on an insurance claim?
Do I have to pay an excess on my car insurance policy if only the other party is claiming? An excess is the amount you pay towards your own repairs or claim, so you don’t have to pay an excess for a third party’s claim. Also, if you don’t claim for your own damage, you don’t pay an excess either.
Who pays compulsory excess?
There are two main types of car insurance excess: Compulsory excess – this is set by your insurance provider and can’t be changed. Voluntary excess – this is how much you choose to pay on top of the compulsory excess.
Do you pay voluntary and compulsory excess?
Car insurance excess is an amount of money you need to pay if you want to make a claim, but you only have to pay it in certain circumstances. It’s made up of two parts — compulsory excess, and voluntary excess and you must pay both to start a claim.
Do I have to pay compulsory excess if not my fault?
Paying excess for a car accident that isn’t your fault
If your insurance company have dealt with the claim, they should claim the excess back for you. If you have a no fault accident, a credit hire company can also make a claim on your behalf.
What should I set my voluntary excess at?
The voluntary excess amount that you commit to will mostly be determined by the disposable income you have access to if the need for a claim arises. It should be set at an amount that you can comfortably manage to pay whilst taking the inclusiveness of compulsory excess into consideration.
Is it better to have high or low excess?
Generally, a higher excess is considered higher risk. But it might save you money right now. If you’re an infrequent driver and mostly have your car safely stored then the level of risk may be low and the savings could be great.
How much should my excess be?
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.
How do you choose excess?
Similarly, choosing an excess is about:
- Looking back at past experience and what you expect to encounter in future, then.
- Factoring in your financial situation, before.
- Deciding on what dollar amount you can commit to in securing financial cover when you need it.
What is minimum excess in insurance?
Insurance excess is the amount you have to pay towards the overall cost of an insurance claim. It’s usually a pre-agreed amount. Your insurer will then contribute the rest – up to the limit of the cover. You’ll see insurance excess on insurance products like travel, motor, home and health.
Is it worth claiming on car insurance for a dent?
In a nutshell, small dents/scratches on your car’s surface does not require a car insurance claim. In fact, it is best to refrain from raising a claim in such a scenario, as you may otherwise lose a lot of money.
What does an excess of 500 mean?
Put simply, the excess is the sum of money you’re obliged to pay should you make a claim on your car’s insurance policy. You are expected to pay if you are deemed to be at fault for the incident that caused the damage.