Insurance excess changes | Motability Scheme

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Insurance excess changes

Motability Operations recently wrote to Car Scheme customers about changes to the terms and conditions of their contract hire agreement. These changes relate to excess payments that need to be paid in the event of an insurance claim. 

As you know, an insurance excess is a payment which you make towards repairs when an insurance claim is made.

For example, if the damage to your car amounts to £1,000 and your excess is £100, then you would have to pay the first £100 and RSA Motability (RSAM) would pay the remaining £900 towards the repair of your vehicle. 

What is changing?

As of 1 January 2016, the standard insurance excess for drivers aged 25 and over will increase from £75 to £100

Excess payments for younger drivers will also change:

  • Drivers aged 16-20 will need to pay an excess of £500 (previously £450),
  • Excess payments for drivers aged 21-24 will remain at £300.

The increase in excess payments for younger drivers is a reflection of the broader car insurance market, where young drivers face the highest premiums.

If your windscreen needs replacing this will now require an excess payment of £50, however the cost of repairs are included as part of your lease, at no additional cost. So, when you notice a chip or crack in your windscreen or windows, it’s best to book in a repair as soon as possible. 

1. Find a summary of what is and isn’t covered by your insurance policy here .

2. For the full details on your insurance policy, download the RSAM insurance cover booklet Will download a resource(PDF 2MB) .

3. Visit in new window or call RSAM on 0300 037 3737 for more information or if you need to make an insurance claim.


More about insurance excess changes

Why are costs increasing now - what has changed?

Motor insurance costs have been steadily rising for many years and insurance is the largest single cost factor in the delivery of the Motability Car Scheme. Factors such as busier roads, more accidents and more expensive claims have all raised costs.

Motability Operations works to ensure that the Car Scheme remains affordable and occasionally we need to make changes to reflect increasing costs within the market. This is the first time we’ve made an increase to insurance excess charges in over 20 years.

When does the excess have to be paid?

An excess needs to be paid by you to the repairer, or to Autoglass for windscreen claims, before any works are carried out on the car.

What if the accident wasn’t your fault?

If the third party accepts liability for the accident, they will need to advise their insurance company.

When RSAM (the Motability Car Scheme insurer) receive confirmation that the other insurance company will cover all costs, the excess can be waived. This process can take several days so often the excess is required upfront and RSAM will then return this to you once the claim is settled.

If the car is driveable, and repairs can wait, then you may be able to delay fixing the car until RSAM have received liability confirmation from the third party. The car can then be repaired without paying the excess.

I need to make a claim - who should I contact?

If you need to make an insurance claim, for example, if you have been involved in an accident or your Motability vehicle has been broken into, damaged or stolen, please call RSAM on 0300 037 3737 or visit the RSAM websiteOpens in new window .

What else is covered by my insurance policy?

Find a summary of what is and isn’t covered by your insurance policy here .

More information about my insurance policy

For the full details on your insurance policy, download the RSAM insurance cover booklet Will download a resource(PDF 2MB) .

I still have a question about insurance…

Take a look at our FAQs on insurance here for answers to common queries about adding drivers, making a claim, and travelling abroad.