Can someone explain car insurance excess?

[gavroche]

I am in the process of shopping around for my car insurance due next month. When asked how much excess you want, the amount you choose is never the amount you are prepared to pay. For example, I put £250 excess and then it comes up with: Voluntary £250, Compulsory £ 245 making a total of £495. What is this Compulsory excess? What is the point of asking me what I am prepared to pay if they double it afterwards?

 

[Spinney]

It means what you are prepared to pay on top of the compulsory excess. Although that often isn't clear.

 

[vickster]

As above. Read the Ts & Cs. If unsure, speak to a broker who can explain it all (you may or may not get the best price vs online)

Excess is ultimately a bit of gamble, don't go higher than you'd be prepared to pay out of pocket in event of a claim (offset against the premium)

General tip - you can sometimes get cashback through a site like Quidco. Last year I got £60 back from Aviva (and they were competitive anyhow)

 

[gavroche]

It means what you are prepared to pay on top of the compulsory excess. Although that often isn't clear.

I understand that but what is this compulsory excess? How decides its value and why compulsory? I also realise the complexity of the question.

 

[vickster]

I understand that but what is this compulsory excess? How decides its value and why compulsory? I also realise the complexity of the question.

https://www.moneysupermarket.com/car-insurance/excess-insurance/
https://www.confused.com/car-insura...ctor-car-insurance-voluntary-excess-explained

...etc

If you want a lower excess, you usually have to pay a higher premium to offset

 

[gavroche]

Thank you all. Sorted now. LV wanted £252 renewal with my wife added as another driver. Not going to happen. Will be going with Ageas for £160 for the two of us and £250 voluntary excess plus the dreaded £245 compulsory of course.

 

[vickster]

Thank you all. Sorted now. LV wanted £252 renewal with my wife added as another driver. Not going to happen. Will be going with Ageas for £160 for the two of us and £250 voluntary excess plus the dreaded £245 compulsory of course.

Never heard of Ageas...what are the reviews like?

 

[gavroche]

Never heard of Ageas...what are the reviews like?

This is on Go compare and there are no reviews yet.

 

[vickster]

This is on Go compare and there are no reviews yet.

Ah ok. No reviews generally via Google?
They might just be part of another company of course

Oh dear, it looks like their Google reviews are pretty ropey... Up to you to decide

 

[gavroche]

Just checked on Google and very depressing reading indeed so will probably change my mind and go somewhere else. Direct Line quoted £189. Thanks @vickster

 

[vickster]

Just checked on Google and very depressing reading indeed so will probably change my mind and go somewhere else. Direct Line quoted £189. Thanks @vickster

Personally, I wouldn't go near Direct Line as they were vile when it came to my injury claim, but they are at least known and established so for the sake of £30, do that (check quidco too)

 

[snorri]

Insurance payouts have subject to an "excess" presumably to deter trivial caims, for many years. Your company appears to have changed "excess" to "compulsory excess". It doesn't appear to change anything for the policyholder.

 

[Dave Davenport]

I take out an annual 'excess' insurance policy for £58, it covers any excess on any one claim in the year and by then going for higher excess on my home and bikes insurance it saves about £300 on that and it would cover any motoring or other excess I'm liable for too.

 

[Kempstonian]

Although compulsory, insurance is a con.

When I bought my car (off the Vauxhall Friends & Family scheme) I insured it for about £10,000. Now the book price of it is around £2,000 but I'm paying more to insure it now than I was then.
I actually phoned the company up and asked them "If I were to write my car off in an accident, would you pay out the amount I have it insured for or the current book price?". I was told "The book price". I said it didn't seem right that my premium was almost a quarter of what the car is worth, due to another increase, so they dropped it to the amount I paid last year. Which was still too much in my opinion.
I wish I could do without the car altogether tbh.

 

[Beebo]

Although compulsory, insurance is a con.

When I bought my car (off the Vauxhall Friends & Family scheme) I insured it for about £10,000. Now the book price of it is around £2,000 but I'm paying more to insure it now than I was then.
I actually phoned the company up and asked them "If I were to write my car off in an accident, would you pay out the amount I have it insured for or the current book price?". I was told "The book price". I said it didn't seem right that my premium was almost a quarter of what the car is worth, due to another increase, so they dropped it to the amount I paid last year. Which was still too much in my opinion.
I wish I could do without the car altogether tbh.

Why would you insure something for more than it is worth?
By your logic i could buy an old banger, insure it for £100,000, deliberatly crash it and expect to be paid £100k.