How excess works
When you make a claim on your own policy, you pay your excess first and your insurer covers the rest. The excess is your agreed contribution to your own claim.
In a non-fault accident handled through the at-fault driver’s insurer, you are not making a claim on your own policy. The at-fault driver’s insurer is meeting the liability of their policyholder. Your policy is not invoked, and your excess plays no part.
When you would pay excess
You would need to pay your excess if you chose to claim on your own policy rather than through the at-fault driver’s insurer, if fault is disputed and your own insurer steps in while the dispute is resolved, or if the at-fault driver was uninsured and you claim on your own policy’s relevant cover.
When fault is disputed
If the other driver disputes liability, the claim becomes more complicated. Your own insurer may pay out initially and then pursue the at-fault driver’s insurer to recover the cost. In this scenario, you may need to pay your excess upfront. If the recovery is successful, it is returned to you, but this process can take considerable time.
One way to avoid this is to keep the claim out of your own policy from the start and handle it as a third-party claim. This is what we do. We manage the claim against the at-fault driver’s insurer directly, which means your excess is never engaged.
What if I already paid my excess?
If you paid your excess because the claim went through your own policy, and the claim is later resolved as non-fault, your insurer should recover the excess from the at-fault driver’s insurer and return it to you. This can take months. It is one reason why keeping the claim off your own policy in the first place saves both time and money.