XS direct sending £2300 claim

dacouch

mattk_180 wrote: »

Aretnap, very true, I think I got my wires crossed.


Now that I've looked at it again, you're right, the OP just needs to contact their insurance company to settle the amount to the TP insurer.


If the TP hasn't received settlement within a certain timeframe, it is common that they will write to the driver directly for payment, as wrong as it may seem, but they may just be delaying payment whilst they investigate the amount being claimed. Again, this can just be put to bed by a call to the OP's insurer.

Technically the OP will owe the money to his own Insurer.

The Road Traffic Act does not allow an Insurer of a vehicle to make a deduction such as for an excess from the amount the third party receives (To protect innocent third parties).

So the Insurer is legally obliged under the Road Traffic Act to pay the third parties claim in full. XS Direct then have to attempt to recover the £3000 excess from their own client. Bearing in mind their target market is young drivers and / or drivers with high performance cars and / or a bad driving history, their clients are often not in the position to repair them.

XS Direct are the only "mainstream" (Used very loosely) to apply All Sections Excess (An excess that also applies to third party claims). The last time I looked into them they had stopped accepting new business but they must have started accepting it again.

A nasty end of the market that very few in the industry approve of as the majority of their customers will grossly underestimate the chances of them having to pay the £3000 out

Sathish

Thanks all for your responses




Thanks. I cancelled my insurance policy with previous insurance provider and taken Tesco car insurance and this insurance policy is half the price compared to previous one.


I am worried about that £2300 claim


When I checked with few other colleagues, they said £3000 excess is only to repair my car and not third party car.


Is that correct?


Colleagues suggested to get the breakdown of the £2300 from the XS direct


XS direct is the third party insurance provider
I had insurance with One call insurance

Quentin

Sathish wrote: »

I am worried about that £2300 claim

Why?


Have you passed it to your insurer to deal with (post #3)


You do need to disclose to Tesco that this claim is "open", and ensure that you have claimed the correct NCD (this claim will reduce it!)

Aretnap

Sathish wrote: »

When I checked with few other colleagues, they said £3000 excess is only to repair my car and not third party car.

Is that correct?

Yes, in 99% of cases that's correct - the excess only applies to claims for damage to your own car, and your liabilities to third party's will be paid in full by your insurer.

One of the few exceptions to this rule is if your insurer is XS Direct, in which case you can end up personally liable for up to £3000 if you damage someone else's car. This seems like a pretty good reason not to insure with XS Direct to me.

In your case you should contact the insurer you were with at the time of the accident (One Call) immediately, let them know that you've received this letter, and pass the details on to them. They should settle the claim in full. If they're being a bit slow about paying, it's not unusual for the third party's insurer to send you this sort of letter yourself - it means that One Call will now be getting hassle to settle things from you as well as the third party's insurer, which should hurry them up a bit. It doesn't mean that you're going to have to put your hand in your own pocket at the end of the day.

Colleagues suggested to get the breakdown of the £2300 from the XS direct

Don't do this. You should not attempt to negotiate with the third party's insurer or attempt to settle the claim yourself - the terms of your own policy will say this. Just pass the details on to One Call - it's precisely the sort of thing you pay (or at least, paid) them to worry about for you.

As above you should also ensure that your current insurer (Tesco) is aware of the open claim, if you haven't already told them about it.

Sathish

Yes I agree this claim will reduce my NCD. I will inform Tesco about this Claim is open..
I spoke to my previous insurer (One call) few minutes back and one call had registered now this as accident in their system.


One call are asking me to speaking me to speak to XS Direct to settle the claim :-(


I had paid lot of money to One call around £2100 1st year as Premium and this is so annoying now that I have to pay again to settle this claim


I kick myself now that I shouldn't gone for £3000 All Section excess.
It is a big lesson to me.

agrinnall

As you appear not to have told Tesco about the claim I would expect that they will levy an increase to your premium as well as reducing the NCD that they applied when you took out the policy, so there could well be a significant bill for you to pay still.

Quentin

If you have an excess to pay of £3000 for third party claims against you, and the claim only comes to £2300 in total, then cancel your claim now to retain your existing Ncd.

Meaning you have told Tesco the correct Ncd so you just need to let them know you have an undisclosed incident to report to them which has not resulted in a claim as you settled privately. (Assuming that is what you intend doing)

Aretnap

Sathish wrote: »

One call are asking me to speaking me to speak to XS Direct to settle the claim :-(


I had paid lot of money to One call around £2100 1st year as Premium and this is so annoying now that I have to pay again to settle this claim


I kick myself now that I shouldn't gone for £3000 All Section excess.
It is a big lesson to me.

Ouch!

On closer inspection One Call are a broker, not an actual insurer, ie they're a middleman who arranges a policy for you with one of a panel of insurance companies. I notice that one of the companies on their panel is XS Direct. So who were you actually insured with - is it XS Direct by any chance? (Your documents should say somewhere who the underwriter is)

rs65

Sathish wrote: »

XS direct is the third party insurance provider
I had insurance with One call insurance

Sathish wrote: »

I kick myself now that I shouldn't gone for £3000 All Section excess.
It is a big lesson to me.

The fact you had a £3000 all sections excess suggests that XS Direct are your insurer.

Is it the other parties insurer or your insurer who sent you the bill.

Sathish

Right Sir - One call is broker of my insurance policy and One call said XS direct is underwriter