XS Direct /Excess worth more than my car

[JO01]

HELLO PLEASE HELP,

 

I have a car insurance with XS direct, during summer mid-July I was involved in an accident. the other party claim against my insurance the cost to repair their car over £5000. it was a really minor incident. I don't understand the huge cost. Unfortunately, at the time I have taken my insurance I didn't really understand what excess was and meant. so I sign up for a car insurance with £3000 excess because the premium was cheap. BIG MISTAKE.

 

NOW, my insurance is claiming that I pay them the £3000 excess to compensate for the repair. I drive a BMW X3 54' Plate currently worth over £1300. I dont understand why I should pay them that much money. Please help. I use my car on the daily basis as well AND THEIR THREATING TO CANCEL MY PREMIUM. PLEASE HELP

[renegadeimp]

Theyre asking that much because thats how much you said you were willing to pay on your excess. With the total amount being 5 grand. if you had said 250, then youd pay 250, but you said 3k.

 

Can i also ask, what damage did they say has been caused, what car were they driving, and how has it come to over 5k, when you state it was a minor incident? COuld it be that the incident was a lot more damaging than you think?

[dx100uk]

urm something smells £5k..who's being mugged here

tell us about the accident.

 

what happened?

[renegadeimp]

Going by a quick google, they seem to have a history of doing this.

 

Excess is usually only if theres damage to your vehicle. However this company applies it to ALL claims.

[unclebulgaria67]

Get a complaint registered with the Broker who sold you the policy and XS Direct. By doing this, it should stop the policy being cancelled and delay you having to pay this excess.

 

See this thread. Suggest you read it.

 

https://www.consumeractiongroup.co.uk/forum/showthread.php?477150-3k-Total-Excess-Worried-regarding-Debt-Collectors

 

You need to ask for a copy of the phone call where the £3000 excess was explained to you.

 

In the thread linked to the Brokers were found by the FOS to have handled the Insurance arrangement correctly, because they told the customer about the all sections £3k excess applying.

 

However, the FOS are still looking into a separate complaint about the excess policy wording about whether the terms are fair or not. There is no explanation of how the excess might be repaid to xs direct, just pay the excess or the policy will be cancelled. It is possible the FOS might uphold this complaint, because the policy wording is pretty unfair.

[renegadeimp]

http://www.xsdirectinsurance.co.uk/documents/T&Cs.pdf

[dx100uk]

though I recognised the story uncle.....

[BazzaS]

http://www.xsdirect.co.uk/faq.php.html

 

Is there a minimum car value XS Direct will insure?

Yes, the minimum car value that we insure is £3,000.

 

 

my insurance I didn't really understand what excess was and meant. so I sign up for a car insurance with £3000 excess because the premium was cheap. BIG MISTAKE.

 

NOW, my insurance is claiming that I pay them the £3000 excess to compensate for the repair. I drive a BMW X3 54' Plate currently worth over £1300.

 

Against you is that they will have sent you policy documents and likely advised you to read them to ensure the policy was suitable, and you will have had a “cooling off period” in which to do so.

 

Yet if your car wasn’t worth £3k, you have a strong case to argue the policy was wrongly sold from the outset.

[unclebulgaria67]

A 54 plate BMW X3 is probably worth over £3k ?