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What Is Car Insurance Excess And Do I Need To Pay It If My Car Is Written Off?

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The excess on a car insurance policy is the amount you agree to pay towards settling a claim. This sum can be anything from 50 upwards. If your car is damaged and the repairs cost 350, you would pay the excess, say 50, and the insurance company the balance. You are required to pay the excess regardless of whether you were at fault or not.

If you have an accident an insurance company will only repair your vehicle if it's economic to do so. The measure they use is whether the repairs can be satisfactorily carried out at a cost equivalent to less than 50 per cent of the vehicle's current market value. If declared a write off, the insurance company will settle the claim by offering either a replacement vehicle of similar age, condition and mileage or a cash lump sum less your excess amount. Ownership of the vehicle is then formally transferred to the insurance company and they make arrangements for its disposal.

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