A surplus on the payment is the fixed contribution you must pay every time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair garage when you collect the car. Once your car is declared to be written off, your insurance company will deduct the excell agreed upon on the policy from the settlement payment it makes you.

If the accident was the other drivers fault, and this is accepted by the third party’s insurer, you’ll be able to reclaim your excess payment from the other person’s insurance company. But what if the driver fails to take up insurance?

All drivers and car owners know for a fact that it’s a legal requirement (under Sec.143 of the 1988 Road and Traffic Act) to have insurance for any damage caused to third parties. Nevertheless, many uninsured drivers still roam around our main thoroughfares. An estimate of the incidence of uninsured driving in the UK is hard to come by and, for the obvious reasons, those drivers involved in breaking the law have every reason to keep quiet about it.

Calculations from the Department of Transport suggest that in the UK around 5% of vehicles are being driven without valid insurance. This group of people not only impose costs on honest motorists in the form of higher premiums, but their presence on our roads also represents a serious risk to other road users. Subsequently, uninsured driving is increasingly becoming a major social dilemma.

But driving without insurance is not a victimless crime. If you have an accident with an uninsured driver and the mishap isn’t at all times your fault, the repair expenses incurred will be paid for by the Motor Insurer’s Bureau that’s funded in tis entirety by the industry, or by your car insurer. Thus, if you are involved in an accident caused by an uninsured driver you will eventually get your car repaired but you’ll still have to pay the excess and there’ll be no one to reclaim the excess from.

What is compulsory Excess?

A compulsory excess is the required lowest excess payment your insurer company will accept on your insurance policy. Minimum excesses do vary according to your personal details and driving record and by insurance company. Today the average excess is around £100, but younger drivers could be faced with excesses of up to £500 – whilst more mature, experienced drivers with a good driving record, could be offered an excess of just £50.

What is Voluntary Excess?
In order to minimize your premium dues, you may want to offer to pay a higher excess than that required by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a higher excess reduces the financial risk carried by your insurer, your insurer will be able to proffer you a significantly reduced premium.

Several garage has repaired my car but it would not release the car until I pay the policy excess to them. Is this proper?

Yes, this is a very commonplace practice. Ensure to inspect the car whenever you collect it. Satisfy yourself that the repair is perfect. Always make sure that you keep your receipt for whatever excess payment as you will need this if you’re reclaiming against the third party insurance. And just in case there’s a dispute, it’s a good idea to make sure the repair garage gives you a repair schedule. This will list all the repairs that were made to you car.

Learn more about online car insurance today and get your online car insurance quotes today.

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