Insuring car insurance excess - can this be done?

C

colly

Registered User
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Hey Guys,

I'm currently trying to get insurance on a high performace car. As I have not built up any no claims bonus with any company it is practically impossible to get my own insurance policy on ths car. The only company that will give it to me are XS Direct - (from ) and I have got a fantastic price from them - just over a grand. The only problem is that there is a €4,000 excess, which means that if I crash I have to fork out the first 4k. This is a pretty big risk but really if you had a small crash on a normal policy you're going to end up getting a hike in your premium for the next few years anyway, so it just depends which way you want to pay for it....

However, it was suggested to me by a friend that used to work in Insurance that you can "Insure the Excess". He said you can pretty much insure anything. So this way you pay a small premium to insure against the possibility of having a crash, and if you do you are covered for the 4k!

Can anyonr tell me if this is really possible and how I would go about doing it?

Thanks
Colly.
 
I have never heard of such a thing but if it was available I would have thought that the broker would offer the facility in the same way that you can insure your no claims bonus.
 
If you think about it, there is a good reason why there is an excess and you can't insure it...

Insurers like you to share the pain. Its a good incentive to better driving and lower claims (along with a NCB).

They also don't want to deal with piddly claims as it costs more to deal with than the claim itself.
 
The only place i've heard of insurance on the excess is, hire cars.

perhaps that info will help, but perhaps not.
 
The main reason you are getting a competitively lower premium is because the excess is higher. Even if you can insure the excess, the total cost will be similar to buying a standard policy with a low excess. As the point was made above this is a different approach where you are really sharing the risk and self insuring. You cannot really have it both ways.Personally I think it is a good approach where people tend to be more careful than normal with driving habits.
 
I believe what your friend is talking about is reinsurance which is something the insurance comanies do themselves between each other to limit their risk.
AFAIK its not possible for an individual in your case.
Example, you pay €1000 to get your car insured with Co. A.
Co. A then decide that they will take your risk up tp €100000 and agree with Co. B to insure themselves from €100001 upwards and pay Co. B €200 to accept the risk from €100001 upwards.
Co. B can then reinsure themselves from say €500000 upwards off co. C etc etc

If you have a claim for €300000, co A will pay out €100000 and get the other €200000 off co B

Reinsurance is big but only on a large scale insurance company level
 
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