When you take out a car insurance package, you always end up paying a little bit more because the insurance system is set up that way. This is how it works: When an accident happens to your car, which you have insured, you will be required to pay a certain amount (excess amount) towards the cost of the repairs. If you cause the accident, you do not get any compensation and you lose money. If you are not at fault in the accident, the third party insurer reimburses you for the excess payment. If your car is totalled and cannot be repaired, your insurance company will reduce the excess payment from the settlement amount payable to you.
Things are not always simple, there are number of drivers on British roads that don’t have any insurance. The question is what happens with your claim if you have an accident with an uninsured driver?
Vehicle insurance is mandatory for all vehicles driven in UK roads. There is a rule in the road traffic act which clearly states the above. This insurance policy comes in the aid of drivers when they meet with an accident due to driver negligence by taking care of there payments .But the sad fact is drivers ignore the benefits of this policy whereby resulting in having to pay hundreds of pounds from there own pocket.
We all know that vehicle insurance is the best medium to mitigate risk. As per the estimate of the Department of Transport, approximately 5% of the drivers are not insured. It can be proved that most of the accidents can be linked to the uninsured drivers. This gap needs to be stopped and the regulatory controls have to be put in place. For these drivers’ mistakes, the Motor insurers’ bureau will bear the cost. Actually these are funded by all those take insurance properly by way of higher premium.
Compulsory Excess – the amount the insured individual must pay toward damages. This amount is determined at the inception of motor vehicle insurance and will depend upon an individual’s age and driving record. An older person with a clean driving record, for example, may have to pay £50. With a poor or short driving record, a person might have to agree to £500. The average for compulsory excess is £100.
Voluntary Excess is the amount beyond the minimum compulsory amount the insurer determines you should pay. This can help you lower you premiums, since agreeing to a high excess will show the insurer that its payout will be less if you submit a claim. It’s very likely this method will save you a good deal of money on an auto insurance policy, but whether this is an option depends on each insurer.
Does a repair shop normally ask for the deductible before it releases the vehicle? If you move forward with repairing your vehicle before the liable party’s insurance pays then yes you are owe the deductible. You will then need to file a claim with the insurance company of the liable party for them to reimburse you for your expense. Inspect your vehicle before leaving the repair shop to make sure all items have been repaired to your satisfaction. In case there is any question of your expenses or the repairs made, you will need to retain a copy of the repairs made and a copy of any receipts for costs paid directly by you.
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