Insuring your excess...

[Invexis-]

I was talking to my mate last night, he was talking about his dad (police officer) and how some of his work colleges are buying a 'retirement' car with there lump sum they get when they retire, so im guessing some flash sports, or at least high insurance group.

He said how they plan to put the highest amount of excess they can and then insure there excess. on something like this http://www.insure4excess.com/motorExcess.asp?curID=1&langID=1&refID=100&subRefID=
Now iv never even thought about that nor heard of it.

But could it be worth it? I mean i havent looked into a great amount of detail about it as i havent had much time.

Has any one had experience? £59.00 sounds too good for £750.

I done a little search but couldnt find.

 

[.Stevo.C.]

Seems to good to be true :S

 

[jack_kemp]

I've never seen this before.....

 

[Invexis-]

Seems to good to be true :S

Exactly, there has to be some form of catch.
You have to pay your excess, THEN claim it back from this company?

 

[Adam.]

And I thought the police were meant to be smart......

 

[jack_kemp]

Exactly, there has to be some form of catch.
You have to pay your excess, THEN claim it back from this company?

Id imagine this was how it works.... But even then, the cost is less then 10% of the excess!

 

[Invexis-]

Id imagine this was how it works.... But even then, the cost is less then 10% of the excess!

Exactly, it seem seems far to good to be true. But if it is, then there is ALOT of money to be saved?

 

[Hixle]

They're a genuine company, we work in conjunction with them on our short term policies.

 

[highwolf]

Doesn't sound a good deal at all, especially when you consider you'll only pay an excess if you're at fault, or the other driver is uninsured. So if you're a decent driver, chances are you'll have your excess paid by a third party anyway. And £60 a year to insure £750 is actually a terrible deal unless you're a psychotic driver. Multiply it X10 and say you're insuring a car - say you pay £600 to insure a £7500 car. If you've a half-decent record then that's expensive and not only that, when you insure a car you're insuring third party risks, so if you smash into a Veryon your insurance will pay out £1m. When you pay £60 per £750 you're only insuring £750, which makes it even worse.

 

[Adam.]

In my experience, whacking the excess up made less difference than they are charging for those premiums!

As for not having to pay unless your at fault. If there is any dispute you need to shell out. I had no option to pay my excess to get my car back after I was hit by a 3rd party. After 2 months of the 3rd party ignoring my insurers and her own they finally refunded my excess.

 

[highwolf]

Yeah, you always have to pay your excess out. If you're unlucky you won't get it back but most times you do. As an aside, I just ran some quotes for my own car for excesses of £100 and £2000. The difference in premium was £11 per year - not worth even thinking about insuring.

 

[SimonR.]

The company is legit, it is a sub brand of Towergate Underwriters who are well established.

Also worth noting, to check how much your voluntary excess realistically saves you on your quote. For example a £2000 quote with only £50 excess then making it £750 and it reduces it to £1220 would not be worth it.

Plus the excess insurance is only available to people over the age of 21.