XS Reimbursement Insurance
“A practical way for fleet owners to protect against high excess shortfalls on claims.”
Most insurances policies have an excess element which is the amount which will not be paid by the insurance company when a claim is made on your fleet insurance policy. Many operators are losing out by not protecting themselves against the cost of the excess.
For fleet owners and managers, the amount they pay each year to cover the excess part of the claim can be substantial if there are multiple claims and the excesses are high. Sometimes a high excess is imposed by the insurer if there is a history of high claims or a higher excess may be selected by a company with a good insurance record to keep the premium cost down.
Excess Protection Insurance is a low-cost way of gaining added security and peace of mind as all the costs involved in a claim are covered.
Excess Protection is an easy way to ensure that there are no sudden demands on cash flow when a claim is made, as the claim amount will be reimbursed in full. It is a financially prudent initiative as it takes the guesswork out of planning this aspect of fleet costs. The policy is in addition to the usual fleet policy and the annual level of cover can be selected, covering multiple incidents.
How it works
Companies buy an Excess Protection Policy in addition to their underlying insurance policy. It may be possible to achieve a lower premium on the underlying policy by increasing the excess amount, which is then insured separately. In some cases, this will reduce your overall insurance spend while ensuring you are better protected.
Fleet excess cover can be bought on one or all of your fleet vehicles. The cover will be handled on a per vehicle basis. The insurers need to be notified if a vehicle is added, deleted or substituted.
Select the annual level of cover which meets your anticipated claims –
£250, £500, £1,000 and then you can claim back any insurance excess charges during the period insured, up to that limit. These are aggregate limits.
For a claim to be valid the Fleet policy must pay out and the claim must be greater than the excess amount. For example, if you choose a £1000 excess, and repairs came to £900, you will be liable to pay the £900.
Please be aware that there is a 14 day cooling off period after purchase of a policy.
Improved risk planning and better budgeting
Total cover where cost of replacement or repair is higher than the excess
Possibility to save money by accepting a higher excess, leading to a lower premium