what is the difference between the mandatory excess and the voluntary excess?
There are two parts of your excess that you will need to consider:
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- the mandatory deductible is decided by the insurer
- voluntary excess based on what you could pay if you claimed
- fire damage
- at-fault accident claims
you choose the
the total deductible you pay is the compulsory deductible plus the voluntary deductible.
For example, if your mandatory excess is £150 and you choose a voluntary excess of £100, your total excess is £250. You will need to pay a total of £250 towards the cost of a claim.
You only pay the excess for your losses and when you are at fault. for example, if you are responsible for an accident and damage your car.
why is there an excess?
Excesses help deter fraud and reduce the number of very low value claims.
Having to pay an excess means anyone who files a claim is more likely to be genuine – it’s one way insurers protect themselves against fraud and false claims.
Choosing to pay a higher voluntary excess can also make your insurance premiums cheaper, since you’ll be paying most of the bill yourself.
But you want to make sure you choose a deductible you can afford, so don’t go too high for the sake of potentially cheaper insurance.
how much is my excess?
The excess amount you are expected to pay should be shown when you get an insurance quote. it will also appear in your policy documents.
gocompare auto insurance spokesman ryan fulthorpe said, “[our] research shows that excesses, along with other insurance terms, remain one of the most misunderstood areas of insurance. Given that 36% of people don’t even know their current insurance excess amount, it’s no surprise that more than one in ten people (13%) who had to file a claim said the excess amount was more than what they expected. /p>
Can I change my voluntary and mandatory franchise?
You cannot change the mandatory excess as the insurer decides, but when you compare car insurance you can look for policies that have a certain excess.
You can choose the amount of the voluntary excess that you pay when contracting the policy. if you want to change it after the policy is in force, you must contact your insurer.
Should I increase my voluntary franchise?
That’s up to you. If you increase your voluntary franchise you could benefit from cheaper insurance. but you need to make sure the excess amount is affordable, as you will have to pay if you claim.
You will have to pay both to file a claim.
When do I have to pay the deductible?
Insurers generally require you to pay the excess immediately to start a claim. the investigation process, which reviews what happened and who was at fault, comes next.
Sometimes your deductible is deducted from the total repair bill, so you pay it at the end of the claim process. It depends on your insurer, the circumstances of your claim, and the policy.
If the cost of the repairs is less than your deductible, you cannot claim your auto insurance.
You will pay your total excess (mandatory, plus any voluntary) for:
pay the excess when it’s not your fault
If the other driver has admitted fault and has already told their insurer, the deductible may not apply. but usually you will have to pay for it, so make sure you can afford it.
When your insurer is sure it was not your fault, they will pay you back.
if the other driver is not insured
If you are in an accident with an uninsured driver, some insurers will protect your no-claims discount, waive your excess, or both.
The same applies if the driver leaves the scene and cannot be identified.
when you will not pay a deductible
You won’t have to pay your excess when someone else claims you.
if you have a third party only insurance (tpo), you will not have to pay excess either. That’s because your losses aren’t covered, and when someone claims you, your insurer covers them.
If it is determined that you were not at fault, your insurer claims the excess from the at-fault party’s insurer, along with other costs.
Assume you will first have to pay your excess to start your claim.