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Motor Excess Insurance: Understanding the Claims Process


Navigating the world of motor excess insurance can seem daunting, especially when understanding the claims process.


This article will simplify the process, giving you the knowledge to handle any motor excess insurance claim confidently.


  1. How to make a Motor Excess Insurance claim?
  2. What is Motor Excess Insurance?
  3. The Role of Excess in Insurance?
  4. Claims Step-by-Step Guide to the Claims Process?
  5. An example of a Car Insurance claim and excess deduction?
  6. Make a claim on your Motor Excess Insurance.
  7. Conclusion
  8. Key Take Aways


In the following sections, we will delve into the nitty-gritty of motor excess insurance, its importance, and the step-by-step guide to the claims process.


We will also explore the role of excess in car insurance claims, common challenges in the claims process, and how motor excess insurance can help. 


Before we dive into the claims process, let's take a moment to recap what motor excess insurance is.


Simply put, it's a type of insurance that covers the cost of your car insurance excess in case of a claim on your primary car insurance policy.


But what does that mean?


When you take out a motor insurance policy, there's usually an amount - the excess - you agree to pay towards any claim you make. This excess can be made up of two aspects: Voluntary and compulsory. Opting for a higher combined compulsory and voluntary excess can be a significant amount of money, and paying it can be a financial burden, especially if you're already dealing with the stress of an accident or theft.    


That's where motor excess insurance comes in. It's a separate policy that covers the cost of your excess, ensuring you're not left out of pocket when making a claim.


For a more detailed explanation, visit our comprehensive guide on Motor Excess Insurance.


The Role of Excess in Insurance Claims


In the context of insurance, excess is a form of self-insurance. It's an amount you agree to pay towards the cost of a claim, with the insurance company covering the rest.


The idea behind excess is that it protects the insurer against frivolous or low-value claims, as the policyholder will have to bear all or a portion of the cost themselves.


However, in the event of a large claim, the excess can be a significant sum, which can be a financial burden for the policyholder.


Step-by-Step Guide to the Claims Process


Reporting the Incident


The first step in any claim is reporting the incident to your car insurance provider. This should be done as soon as possible, providing all the details about the incident.


The claim can be for different kinds of incidents, but the most common would be where you have suffered accidental damage to your vehicle.


It's essential to provide as much detail as possible, as this will help your car insurer to assess your claim accurately. It's also crucial to report the incident as soon as possible. Delaying could lead to complications with your claim and, in some cases, even result in your claim being rejected.


Claim Assessment


Once the incident is reported, your insurance provider will assess the claim. This involves reviewing the details of the incident, checking your policy terms, and determining liability.


But what does claim assessment involve?


If the vehicle has been damaged, then a claims assessor may be sent to provide an accurate account of the damage to the car.


The car insurance claims team will then gather all the information regarding the claim, such as police reports, witness statements and the report from the damage assessment.


Essentially, it's the process through which your insurer determines whether your claim is valid and, if so, how much they should pay out. This involves reviewing all the information provided, checking your car insurance policy terms, and determining who was at fault for the incident.


Excess Payment


If your claim is accepted, the next step involves the excess payment. This is where your motor excess insurance comes into play.


When you purchase your annual car insurance policy, you will potentially have two excess contributions to pay.


The motor insurer sets the compulsory excess amount. In assessing how much they want you to contribute to each claim, they may look at factors like your age and driving history. Someone who is a younger driver, or has a history of claims, may have a higher compulsory excess imposed on their policy.


Next comes the voluntary excess amount. This is the amount you agree to pay towards any claim. The higher voluntary excess you agree to, the more your annual motor insurance premium should come down. How much voluntary excess you agree to must be set when you buy the annual car insurance policy. You cannot set it for each and every claim.


The combination of the voluntary and compulsory excess is a fixed amount that will be charged on any claim on your comprehensive motor insurance policy.


Claim Approval and Excess payment


If your claim is approved on your car insurance, then the car insurance company will look to charge your excess immediately. The insurer will then authorise the claim and the car repaired. The motor insurer will cover the difference between your excess payment and the total repair bill.


An example of a Car Insurance claim and excess deduction


So in the claim example above, the total cost of the approved claim is £2,500. The policyholder must pay the combined compulsory excess of £300 and Voluntary excess of £250, so £550 in total.


The car insurance will collect the excess of £550 from the policyholder and pay the remaining £1,950 to pay the claim repair costs in full.


Make a claim on your Motor Excess Insurance.            


Once you have been through your claim on your car insurance and paid your excess, if you have a Motor Excess Insurance policy, you can claim your excess payment back.  


To make a claim on your Motor Excess Insurance policy, you must provide evidence that you have paid your excess on the claim on your car.


You can claim for both the compulsory excess and the voluntary excess amounts you have paid together. This is up to a maximum shown on your annual motor excess protection insurance cover.


Your annual motor excess protection insurance provides a maximum claim limit, or pot, that you can claim for on that policy. So if you have a £500 limit, you can make claims up to, but no more than £500.


In our example, the excess paid is £550, and Total Loss GAP currently offers Excess Protection Insurance cover at £500 and £750, closest to this amount. You could have a £500 excess level and pay the £50 outstanding, or you could have a £750 level to pay the entire £550 excess claim. You would have a further £200 to use on another claim later that year.


Alternatively, you could buy a new £750 excess policy after you have claimed on this one. This would allow you to claim an additional £550 for an excess claim in the following 12 months.




Understanding the claims process for motor excess insurance can empower you as a policyholder. It provides the knowledge to navigate the process confidently and prepares you for potential challenges. By understanding the claims process, you can ensure that you take the proper steps at the right time, giving your claim the best chance of being accepted and settled quickly. And with the help of motor excess insurance, you can navigate the claims process without worrying about a large excess payment hanging over your head.


Key Takeaways

1. Understanding the claims process for your car insurance and motor excess insurance is crucial for any policyholder.

2. The claims process involves reporting the incident, claim assessment, excess payment, and claim approval and compensation.

3. Excess plays a pivotal role in the claims process, and having motor excess insurance can help cover this cost.

4. Motor Excess Insurance can only be claimed IF you have made a successful claim on your car insurance AND paid your excess as part of that claim.

5. Motor Excess Insurance has a maximum claim limit per annum or per policy term, whichever is shorter. This is effectively a pot of money that you can make a claim. If you have a £500 motor excess cover, you can only claim a maximum of £500 from that policy. Once that has been exceeded, that is the end of the cover, regardless if you have time left on the policy.


Frequently Asked Questions


This section addresses some common questions about the claims process for motor excess insurance. From understanding excess payments to navigating claim disputes, we've got you covered.


What is the first step in the claims process for motor excess insurance?


The first step is to make a successful claim on your main standalone policy for your car. If you are charged an excess (a combination of a compulsory excess and a voluntary excess), and you pay it, then you can make a claim on your Motor Excess Insurance to claim this total amount of excess back.


Are there any circumstances where you cannot claim Motor Excess Insurance coverage?


Yes, the key one is that you have not been charged your excess on the car insurance claim because you have not reached the threshold. For example, if you have an excess of £750 but the claim damage cost is only £600, your motor insurer will leave that claim to you.


If you pay the £600 to get the repair done, then this would have to pay out of your own pocket. Also, as no excess has been paid to your motor insurer, then you cannot claim the £600 from your motor insurance excess protection.


How does motor excess insurance help in the claims process?


Motor excess insurance covers the cost of your excess in case of a claim on your main motor insurance policy. This means you won't have to pay the excess out of your pocket, easing your financial burden and speeding up the claims process.


What type of circumstances can be covered by Motor Excess Insurance?


Motor Excess Protection Insurance covers where a successful claim has been made on your motor insurance policy, and you have been paying the excess. This could be for accident, fire, theft or flood. It can cover the main insured and any named driver.


What type of vehicles can you get Motor Excess Insurance for?

Generally, motor excess protection insurance is available for cars, vans (for certain commercial uses) and motorbikes.