What You Need to Know About Claiming Excess
Discovering that you are not fully covered at the claim stage is frustrating. Claiming excess can seem like an intimidating process. But it doesn’t have to be when you fully understand what it is.
Insurance excess is the amount you pay when submitting a claim. The policyholder pays the amount to the service provider. This sum of money covers the uninsured portion of your claim. It is to be paid before the claim is settled.
Many people get frustrated when they, through no fault of their own, still have to pay their excess. However, the administrative cost is always the same.
If you are not the guilty party, #Rodel4U will help you claim the excess back from the person who is to blame, when successful.
How does insurance work?
Upon buying insurance, you agree to pay a monthly or annual premium. In return for a payout when you need it. You pay the premium and promise to be careful. People don’t like to buy insurance; however, in the event of an unforeseen accident, this is when your “grudge payment” comes in handy.
Insurance not only provides protection, but it also gives you peace of mind. It can protect you from accidents or damage to your property — both in your personal and business capacity. There are different types of insurance coverage. It can be for commercial, domestic, and liability coverage.
Understanding insurance excess
There are different types of excess. Your excess is set in advance when you take out your policy. Your excess is usually an agreed fixed amount or a percentage of the sum insured.
For example, let’s say your laptop insurance includes accidental damage, and your accidentally damage your screen. On your policy, it states an excess of R1,500. Always make sure you read the fine print, so you are not surprised when claiming and excess is due. Assuming the cost to fix your laptop damaged screen is R5,000, you will be expected to pay the first R1,500, and the insurer will cover the balance.
Most insurance policies have a voluntary excess or a standard excess. Standard excess applies to every claim at a specified amount. Voluntary excess is an additional amount chosen by you. This option can help reduce your monthly premium
Your choice of excess will either reduce or increase your premium. The cheapest premium might mean the most expensive excess. Therefore, paying a high premium might mean paying a less expensive excess.
Some excesses will apply whenever you make a claim. Others will depend on the circumstances of your claim. So, by agreeing to fund a certain amount of your claims. You effectively get a discount on your insurance premiums.
Having an excess on a policy prevents people from making small claims and serves to motivate policyholders to be more responsible. It is also useful for keeping premiums more competitive.
Claiming excess and how it works
Your insurer doesn’t pay out if the excess is less than the claim itself. In some situations, your insurer may waive any excess that applies. Under some policies, there may be no excess at all. It is always best to follow up on your policy with your broker should you be unsure of anything.
Many policyholders struggle to understand what an insurance excess is. They don’t know why they have to pay for this. Or how to claim excess if they are not at fault.
Using a car accident as an example will explain the process in detail. Let’s say that someone drove into your car, and they are the only person at fault as you were driving legally. You would follow the 5 steps and make contact with Rodel 4 U via your app or by calling the emergency number 0861111082.
Once you claim you will be liable for paying your excess and then once your claim is successful, the Rodel 4 U team will work with you on claiming back your excess paid.
Remeber, excess payment occurs even if someone else caused the accident. You and your insurer are the first and second parties to the insurance contract. The contract does not bind the third party and, if it’s a third-party claim, claiming excess can only take place upon the success of the claim.
If money is recovered, you will receive a refund, although the amount you receive is determined by the terms and conditions of your policy.
The benefit of an insurance policy is to cover you in your time of need when you can’t afford to pay for massive repairs/replacements yourself. Please ensure that there will be money available when you need to claim for your excess, especially when you are claiming for higher amounts.
Remember claiming back insurance excess from the third party is possible. The insurer may be able to recover it through legal means. However, there is no obligation on an insurer to recover the excess from another party.
Know and understand why you pay the excess. So that you can make informed financial decisions. Read your policy very carefully and ask your broker what excesses you are liable for when a claim happens.