£3000 excess bill

one.use

Any help would be greatly appreciated!!

Like a clown i took out car insurance with one call which had a £3000 excess. At the time tbh i was paying more attention to the monthly payments and based on that i took it out.

As you may have guess this policy was brokered to xs direct. I had an accident in May which I thought at the time was not serious as it was a light hit in traffic and i came off with nothing more than a broken numberplate. I've found out now that the other car has been written off. I hit the other cars tow bar which somehow buckled the structure of the car so the excess is due.

The only problem is they want me to pay within 14 days, with interest being charged daily with immediate affect. So i guess interest has been accumulated already for the past few days. My problem is they are refusing to negotiate a payment plan and are ready to cancel my policy and get debt collectors involved. I don't know how they expect me to pay at a moments notice.

Anybody been in a similar situation? Suggestions in regards to what possible steps i should take would be greatly appreciated.. Im going to get back on the phone to them.

Thanks.

lisyloo

The only problem is they want me to pay within 14 days

There is no excess on 3rd party claims !!!!

Why are you claiming for a broekn number plate if you have a £3K excess???? !!!!

The excess is only for your claim not for the other party.
Suggest you clarify what the excess is for and if it's for repairing your car then you cancel that part of the claim.

vaio

Generally speaking an excess is only payable if you claim for damage to your car although one or two insurers are now charging it on third party claims.

Check your policy details.

one.use

Im not claiming for anything, its the other driver. They've said its under an all sections excess

mcjordi

ive had a quick look at xs direct's policy book and from the looks of it they charge the third party excess..

qouted from 3rd page of booklet
"Therefore, in the event of a third party claim, the Company will remain liable but the
Company is entitled to recover the Excess Amount from
the Insured."

one.use

I understand that, I wanted to know whether they can impose the 14 day deadline. Or am i going to have to reach court first before I can negotiate a more reasonable payment plan. If i had known it would be this tight i could of made arrangements or prepared to some degree. I cant magic £3000 so at the moment im hopeless.

mcjordi

im not sure on the deadline thing, check your documents to see if a timeframe is mentioned.
It may be worth speaking to them about a payment plan.

rs65

lisyloo wrote: »

There is no excess on 3rd party claims !!!!

£3k all section excess. Bizarre but true.

OP, they are going to have to come to some arrangement if you don't have the money but it may end up as a CCJ and whatever monthly amount the court says you have to pay.

raskazz

lisyloo wrote: »

There is no excess on 3rd party claims !!!!

Why are you claiming for a broekn number plate if you have a £3K excess???? !!!!

The excess is only for your claim not for the other party.
Suggest you clarify what the excess is for and if it's for repairing your car then you cancel that part of the claim.

Normally this is correct. However XS Direct's cheap rates stem from the fact that their excess applies to third party claims in addition to claims for the client's own loss or damage. Some non-standard risks through brokers will also carry third party excesses.

Caveat emptor.

deutsch

£3000 xs? does your value of the car and the total annual premium meet this!?

bouncydog1

The Insurers have to pay the claim as they have provided the cover. As their Insured you have a contract with them that is subject to a £3k excess which you agreed to when you took out your policy.

Your best bet is to see if they will agree to a payment plan - whether they will or not depends on their stance to recover their outlay. You do have a contract and under the terms of the contract you are liable for your excess. it really will come down to the wording as to whether or not they can ask for 14 day settlement.