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Are you looking to protect the excess amount you may have to pay on a motor insurance claim? Here we explain how Motor Excess Insurance protection can help you cover that situation. We also provide some of the cheapest rates for this type of cover in the UK.
Motor Excess Insurance, also known as Excess Reimbursement Insurance or Excess Protection Insurance, is a cost-effective additional insurance policy that covers the excess amount you would have to pay when claiming your primary motor insurance policy.
When you take out a standard motor insurance policy, you typically agree to an excess amount, the portion of the claim cost you would be responsible for before the insurer pays the rest. This excess is usually divided into two parts: compulsory excess, set by the insurer, and voluntary excess, which you choose to lower your premium potentially.
Prices are inclusive of Insurance Premium Tax
Private Motor Excess Insurance comes into play when you need to make a claim. If your claim is successful, your primary motor insurance policy will cover the cost of the claim minus the excess amount. The Motor Excess Insurance then reimburses you for the excess amount you had to pay up to the limit specified in the policy.
This type of insurance provides financial protection against paying a significant excess in the event of a claim, making the claims process less financially burdensome for policyholders. It benefits those with high excess amounts or who want to minimise out-of-pocket expenses when making a claim.
However, it's important to understand that Motor Excess Insurance does not replace your primary motor insurance policy; it only complements it by covering the excess amount. It is an optional additional policy you can purchase based on your needs and preferences.
Like most insurance products, they are considered because they protect against unpredictable financial loss. Excess protection is not compulsory insurance. Whether you buy a policy or not is up to you.
Some key points to consider when opting for Motor Excess Insurance include:
Motor Excess Insurance provides financial protection by covering the excess deduction you must pay when claiming your primary motor insurance policy. It can make the claims process less financially burdensome and provide peace of mind, especially for those with high excess amounts or who want to minimise out-of-pocket expenses.
However, it is crucial to understand the terms, conditions, and exclusions of both your primary motor insurance policy and the Motor Excess Insurance policy to ensure you have adequate coverage in case of an accident or other claim-worthy events. Always take the time to compare different policies and providers to find the right coverage for your needs and budget.
Yes. The compulsory excess is the amount your motor insurer imposes as your minimum contribution to any claim. You can then opt to pay an additional voluntary excess when you purchase your motor insurance policy. This additional amount is added to your compulsory excess if you make a claim.
You will be charged the total of your combined compulsory and voluntary excesses when you make a claim on your motor insurance. Once you have paid this total you can then claim this back from your motor excess insurance policy, subject to the claim limit you select on the policy.
There is no maximum to the number of times you can claim on the motor excess insurance policy itself. However, the amount you claim is limited to the claim limit on your policy. For example, if you have a £1000 motor excess policy, you could claim twice for £500 each time. However, once you have claimed £1000 within the annual period, then that is the end of the policy claims available.
The motor excess contribution on your GAP Insurance can only be claimed if the vehicle is written off or stolen and as part of a total loss settlement by your motor insurer. Any other situation where you may claim on your motor insurance (like a small, repairable bump) where the vehicle is not written off, and you pay your excess can be covered by your Motor Excess Insurance policy.
Also, remember that the motor excess contribution in a GAP claim is limited to £250. If you have an excess of, say £500, then a motor excess insurance policy can make up the difference.
The Motor Excess Insurance policy is an annual policy. It will last until the annual expiry date, or if sooner, the date on which you have reached the maximum claim limit on the policy. If that happens before the annual expiry then you can buy a new policy at that point.
Yes, you can renew your Motor Excess Insurance policy each year or when your policy reaches the maximum limit for the claims. Upon renewal, you can select a motor excess limit you require for that year.
Yes, when you buy your first Motor Excess Insurance policy from Total Loss GAP, there is a 14 day 'waiting period' on your initial cover. This means you cannot make a claim within the first 14 days of cover. This is to deter fraudulent purchases where someone has an accident and then buys the Motor Excess Insurance to cover any potential claim.
When you renew your policy, then there is no waiting period.
No, the Motor Excess Insurance policy cannot cover an incident that happens prior to the policy purchase.
If you are involved in an accident that is not your fault, you may still initially have to pay the excess bill when you make a claim on your motor insurance policy.
However, suppose the other party involved in the accident is found to be at fault, and their insurer accepts liability. In that case, you can typically recover the excess charge from the at-fault party's insurer.
Sometimes, your insurance company may waive the excess or deal with the recovery process on your behalf. The method of recovering your excess can vary depending on the specific circumstances of the accident and the level of cooperation from the other party's insurer.
It's important to note that the recovery process might take some time, especially if there are disputes or delays in determining fault. Additionally, recovering your excess may be more challenging if the other party is uninsured or underinsured.
Having Motor Excess Insurance can provide a level of financial protection in these situations, as it would reimburse you for the excess bill you had to pay up to the limit specified in your car excess insurance policy, regardless of whether you can recover the excess from the at-fault party's insurer.
Yes. You can buy excess cover for several other situations. These include Car hire excess insurance, where you look to protect the excess charges applicable if you damage your hire car.
You can also find combined excess cover for multiple products. Lifestyle Excess insurance can often cover excess claims on personal car insurance, pet insurance, home insurance and travel insurance under one excess policy.
Acasta European Insurance Company Ltd underwrites the Motor Excess Insurance policy from Total Loss GAP.
Total Loss GAP, a trading style of Aequitas Automotive Ltd, provides the policy.
Aequitas Automotive Ltd is authorised and regulated by the Financial Conduct Authority in the UK. Aequitas Automotive Ltd is also a member of the British Insurance Brokers Association. The Financial Services Compensation Scheme and the Financial Ombudsmen Service also cover your policy.
Excess protection Insurance can be purchased from many places. These include your motor insurer, online comparison websites and independent providers like Total Loss Gap.
With all insurance products, you must consider policy features and the premium. However, with an excess protection policy, the general cover should be similar wherever you look. Premium costs can differ, however.
Updated 22/7/23, written by Mark Griffiths