The Cost of Someone Else Paying Your Excess

 

 

 

Insurance companies implemented a policy excess system in order to deter gratuitous claims. However now there is a culture which could be using this deterrent to encourage the very thing it was designed to curb.

How somebody else paying your excess could be costing you.

In insurance, the policyholder contribution, or the ‘excess’, is the amount you have to pay if you make a claim. Without an excess, claims would increase dramatically and, ultimately, the cost of insurance would rise. It is a studious measure to deter people from making frivolous or unnecessary claims for minimal damage which would, invariably, inflate the cost of insurance. It is also helps to prevent fraudulent claims. This article focuses on that small, yet significant aspect of car windscreen (and glass) claims: the excess.

Who pays?

Windscreen Excess Amount

Cash Notes

In a nutshell, a windscreen repairer offering to pay your excess is vying for your business. By offering to cover a policyholder’s contribution, they are trying to attract custom, plain and simple. However, given that the average excess amount is circa £75.00, the amount would seem too great to write off; it would need a claw-back somewhere, surely. Where does the buck stop? If the billing is carte blanch, the repairer might simply add the ‘waived’ amount to the final invoice before billing the insurer. There may even be some creative billing whereby fictitious constituent clips, peripheral parts or out of hours charges will be added to cover the shortfall created by offering the insured party a freebie. Some busier (or even desperate) repair companies may even absorb the impact based on either the volume of work this kind of marketing might be generating, or that it is seen as something doing (and better than standing around scratching their proverbials). Whichever way you want to look at it, or any business attempts to justify it, knocking off around 50-quid distorts the market and ultimately alters the true value of repairing or replacing a windscreen. Per contra, windscreen repair and replacement companies are not the only culprits of this perfidious practice.

Secondhand car sellers.

Selling a car with a damaged windscreen or poorly repaired stonechip could prove to be a deal breaker. It may also take a huge chunk out of the seller’s profit margin as the cost is usually not covered by their car trader policy. Some sellers for example will offer a £50.00 discount suggesting that the buyer could claim for a new windscreen on their insurance after buying and subsequently insuring the vehicle. Others might even promise to pay the excess when – or if – the windscreen is (eventually) replaced. Of course, morality aside, to initiate an insurance claim for damage which occurred before policy inception is tantamount to fraud. The system however, is open to this kind of abuse and much of this type of activity goes on undetected.

Overall, the motor insurance industry is extremely competitive; motor insurance providers are relying more and more on high volume sales which in turn enables them to offer cheaper rates to the consumer. Conversely, every change in an individual’s circumstances will have a bearing on the cost of their insurance; age, car type; postcode, usage, where the car is kept; previous claims; driving convictions and more. These are all significant factors in calculating the cost of insuring motorists. An increase in the number of claims made will also be collated to profile different motorists, and calculate the risk of insuring them based on that data.

Is your claim necessary? If it is, ask yourself what the overall implications would be if someone was distorting the claim amount for their own gain. It would be incredibly short sighted to satisfy your thinking if the answer was for fiscal reasons. If you are saving the excess payment; the repairer is gaining the claim amount, and the insurer ultimately is indemnifying the loss, there can be no complaints when there is a premium hike when the policy lapses. Now rethink the previous statement in reverse. Is the insurer subsidising a transaction?

Ask yourself, would you still be making the claim if you were paying the excess yourself? Better still, ask the repairer why they would ‘lose’ or waive a significant part of the final bill in replacing a broken windscreen. If you’re not paying, who does?

 

Look Without Watching

 

Why watching your windscreen fitter may not be a good idea.

 

The moment you have been fearing has arrived. You’re about to have your windscreen replaced, and the thought of a stranger getting intimate with your car is making you feel uncomfortable. What do you do?

An immediate and infinite resource is the internet, and you can always tap into the experience of somebody else who has survived such an event; forewarned is forearmed. However, one commonly offered fragment of windscreen wisdom might just preempt the very thing you fear the most.

Windscreen Replacement in Progress

Windscreen Replacement in Progress

Popular advice to, “watch the fitter like a hawk” is understandable given the horror stories being recited by those who have had the misfortune of witnessing them. But what if your own actions are to blame? What if your own fear becomes the cause of the fitter fluffing it? Nothing says, ‘you cannot be trusted to do a good job without me watching you’ more than becoming the technician’s shadow during the process. This is not to say that you should not be around, or that you’re not welcome, but discussing your concerns could mean that you may not, after all, have to perch yourself upon the poor chap’s shoulder, ready to Kango through his skull, to peck out his brain the moment he slips up.

Hiding in Garage

Resist hiding in your garage

Relax. If you’ve been diligent in your research you might even have the right person turning up to do the job. In which case, greet him, exchange a few pleasantries and simply get on with your day (offer him a cup of tea as you would do with anyone when welcoming them to your abode). Breaking your new-windscreen-replacement virginity however may require a bit more courting before the fitter starts stripping down (the car, that is).  Do make yourself available, perhaps telling him where you’ll be should he need you for anything.This may also be a useful time to utilise, perhaps in the garage, garden or greenhouse for example.

Windscreen Replacement in Progress

The Stealth Watchman

Is it alright to watch the fitter from start to finish?

Ask him (or her) if they would mind you being nosey. Be honest about it (but without being obvious). Many tradesmen cannot perform if they’re being watched. It makes them nervous, or that they become too aware of the company which throws them off their routine. Replacing a windscreen is a methodology which requires concentration and alertness. An experienced windscreen technician – or automotive glazier – will follow a step-by-step procedure they have in their head, and this (usually) ensures everything gets done, and in the right order. In the circumstances it is probably best to leave him to his own devices; you’re just going to have to trust him, but do try and tap into your own instincts. Does he inspire confidence? Is he well presented? Is his van clean and tidy? How happy (or sad) is his demeanor? Remember, he’s not only working on your car; he’s also your guest and so you should make him feel as welcome as one. If the impression you get is not good, it might just be your cue to become a curtain twitcher.

Windscreen Voyeurism?

Peekaboo! Windscreen Voyeurism?

By all means look, but try not to watch. You could end up maneuvering your gaze into a voyeuristic trespass.