Navigating the post-accident financial maze can be perplexing, particularly when facing the prospect of paying an excess on your car insurance. A common query is: "Do I have to pay excess if it wasn’t my fault?" The brief answer is, 'yes', initially you might - but whether you pay excess will typically depend on a number of secondary factors.
Whether you want to know more about how car insurance excess works, or simply need advice on how to proceed with a claim, in the following article we’re going to take a closer look at excess payments, and importantly, how fault factors into this equation. Let’s dive in!
In the world of car insurance, excess refers to the upfront amount you're obliged to pay when making a claim, irrespective of who was at fault. This sum is a pre-agreed amount set out in your policy, and is essentially a means of sharing the risk between you and the insurer.
There are generally two types of excess:
Now, taking a deeper look at the crux of the matter, the payment of excess is typically required when you lodge a claim, irrespective of fault. However, fault determination plays a pivotal role in whether you can reclaim this excess:
An "at-fault" accident refers to a scenario where you are deemed responsible for the incident. In such cases, you will have to bear the excess, and it's unlikely you'll reclaim it.
Conversely, with a non fault accident claim, another party is responsible. You might still have to pay the excess upfront when claiming, however, if the third party admits liability and their insurer agrees, your insurer will often try to reclaim the costs, including your excess, from the third party’s insurance.
It might seem unfair to bear the upfront excess cost when you're not the culpable party, yet this system expedites your claim process: by paying your excess, you enable repairs or replacements to begin without having to wait for fault disputes to settle. This is particularly beneficial when the other party's insurer is slow to accept liability or if there are complications proving fault.
Yet, this doesn't imply you're left at a financial disadvantage. As the Citizens Advice Bureau points out, if another driver is at fault, you can reclaim not only your excess but also other costs you've incurred due to the accident.
Once it's established that you weren't at fault, your insurer will step into the shoes of the 'subrogation' process. Here's what this entails:
If you find yourself in a quandary where your insurer refuses to refund your excess despite evidence of your non-liability, you do have options:
Before resorting to external channels, raise the issue within the insurer's internal dispute resolution department. They're mandated to review your grievance and provide an outcome.
If the internal processes don't yield satisfactory results, the Financial Ombudsman Service can intervene. They provide an independent review of unresolved complaints, and their decision is binding on insurance companies.
When all else fails, engaging a solicitor experienced in road traffic accidents and insurance disputes can be your final arsenal. While this may come at a cost, some operate on a 'no win, no fee' basis, ensuring you're not further out of pocket.
The aftermath of a car accident is, without doubt, taxing, both mentally and financially. While paying an excess even when not at fault might seem like salt on the wound, understanding the dynamics can ease the process and increase your chances of reimbursement. Remember to document everything meticulously, from photos at the scene to correspondence with insurers.
Lastly, it's crucial to choose an insurance policy that aligns with your needs. Being informed about such intricacies, including aspects surrounding excess payments, can offer peace of mind during tumultuous times. So, the next time you're assessing your insurance options, ensure you comprehend all the terms, and don't hesitate to ask questions. After all, your insurance is a safety net, so ensuring it holds strong when tested is paramount.