Car Hit Us From Behind, Insurance Company Want Us To Pay Excess Fee
What Is Insurance Excess For Car Accident Claims?
An excess on a policy is the fixed amount which you either have to pay out before the insurance kicks in or which is withheld by the insurance company in the event of car accident claims and other insurance payouts.
If you have an excess for £100 and make a claim for £1,000 of damage compensation, your insurance provider will pay out £900, the principal minus the excess. Even if you are making a claim for an accident which was someone else’s fault you will need to pay this excess initially, such as if a ‘car hit us from behind, the insurance company wants us to pay excess’. You may then be able to reclaim this from the other party.
Compulsory Versus Voluntary Excess
All insurance policies will have some form of compulsory excess. This is applied no matter the circumstances and will be automatically deducted by the insurer. The amount of compulsory insurance you will be charged will depend on factors such as you age, vehicle and length of time driving. Different drivers fall into different risk categories. A voluntary excess is a little different to this. In a voluntary excess, you will often set the additional amount which you are willing to pay. The more you increase this, the lower premiums often are. Drivers need to ensure that they are happy with the level of coverage and their combined excess value when taking out a policy. When making a claim you will need to pay the compulsory and voluntary excesses together.
Why Do Insurance Companies Charge An Excess?
Put simply, insurance companies will charge an excess to deter people from making minor, small or what could be termed as ‘frivolous’ claims. If you have an accident and make a claim for a relatively small amount (something below where typical excesses are levied), the cost of administering the payout could exceed the value of the payout.
When Do You Have To Pay Car Insurance Excess Fees?
You will have to pay the compulsory (and any voluntary) excess in the event of making any claim against your insurance policy. That means that even if you have been hit from behind, your insurance company will ask you to make this payment. If the accident is later proven to be the fault of the other party, the full cost of the damages will be recovered from their insurance provider. You excess payment will then be refunded, meaning you should not be out of pocket.
If you can not afford the excess payment at the time of the claim, the insurer may deduct this amount from the payout you receive. To prevent this, you can take out insurance against your excess. This means that in the event of making a claim, you would also have separate insurance which will cover the costs of your excess(es). You will still need to pay the excess at the time but will be able to recover it after your accident.
Paying Excess Fees For An Accident Which Wasn’t Your Fault
You may need to pay this fee and then later claim it back from the other party’s insurance company if you have had an accident which is not your fault. Your insurance company may organise reclaiming this for you.
No Win No Fee Car Accident Claims
Whether you are a driver, or a passenger in a car which has been hit from behind, filing a claim can be complicated and sometimes difficult if insurance excesses are involved. If your accident claim includes claims for loss of earnings, time off work, medical costs or having to have paid an insurance excess, it is a good idea to work with a specialist law firm. At Legal Expert, we can work with you to recover the money you are entitled to and help to protect your financial security.
We offer a no win no fee service. This means that you will not have to pay anything towards your legal costs if your case is unsuccessful and you do not receive any compensation for your injuries or other costs. From start to finish, you won’t have to pay anything. Our fee is paid as part of your compensation package by the person you are claiming against. This type of legal service is called a ‘conditional fee’ agreement and it has helped people across the country to get the compensation they deserve, without having to take any financial risk.
How Legal Expert Can Help
At Legal Expert our no win no fee solicitors can work with, helping you to recover the compensation you deserve after a car accident. We will also help you to recover expenses such as any excess fees you may already have had to pay. We are ready and able to work with you and can provide all the help and legal advice you need. Talk to us today and start your claim by calling 0800 073 8804. You can also send us an email or reach out to us using our online chat feature.
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