Excess Reduction Insurance

The Excess Reduction Policy allows you to claim back part of your Policy Excess in the event of a fault claim. You do still need to pay out the excess first at the point of a claim, but you can recover up to the Excess Reduction amount back. 

Please note, claims must be notified to the main motor insurer and then to Universal Insurance Company for the reimbursement of the Excess Reduction amount. Excess Reductions claims must be reported within 90 days of the incident.

Excess Reduction Explained

Most insurance policies include an Excess amount - this is the first part of any claim cost that the insured is responsible for.

In order to reduce the financial burden our customers would be liable for in the event of a fault claim, our policies are packaged with an exclusive Excess Reduction Insurance policy, which makes part of the excess amount you are responsible for recoverable. (For non-fault claims, the excess would be claimed from the Third Party.)

Please note - you will still need to pay the full Motor Policy Excess* amount for the repairs first, but you can claim the Excess Reduction part back, reducing the total amount you will be ‘out of pocket’ if a claim occurs. (*full policy excess amount is confirmed in Motor Policy Schedule and documentation)

How it works

Your motor policy has, for example, a £500 Excess as standard. The Excess Reduction Insurance policy makes £400 of that excess amount recoverable in the event of a fault claim. Example:  

• £500 Standard Policy Excess – this amount will still need to be paid by you towards a claim
• £400 Excess Reduction policy – this amount is recoverable from the Excess Reduction Insurance policy (you need to inform them about the claim also)
• £100 balance – after a claim in this scenario, you would only be £100 ‘out of pocket’, rather than £500

When would you be responsible for paying your policy Excess

• Any incident irrespective of blame 
• Your vehicle is damaged by fire
• Your vehicle is stolen and not recovered

When would you recover your Excess Reduction amount 

• After paying out your excess on a fault claim (for non-fault claims you recover the excess amount from the Third Party)
• After paying out your excess on a fire claim
• After paying out your excess on a theft claim

Situations that are not covered

• you must report the claim to the Excess Reduction Insurance company within 90 days, or your claim will not be accepted – details will be included with your documentation
• any additional excesses applied or betterment
• there is no cover for personal effects or audio equipment claims

Claims must be notified to the main motor insurer and Universal Insurance Company for the reimbursement of the Excess Reduction amount. Excess Reduction Insurance claims must be reported within 90 days of the incident.

Download the Motor Excess Reduction Insurance Policy Wording and Insurance Product Information Document (IPID) for more information. 

This policy cover has been arranged with Universal Insurance Company (Guernsey) Ltd. Sky Insurance is connected for the purposes of the Insurance Companies Regulations 1994 to Universal Insurance Company (Guernsey) Ltd who is authorised and regulated by the Guernsey Financial Services Commission.