How much excess is applied by the MIB for property damage caused by unidentified third parties?

The correct answer reflects the standard amount of excess that the Motor Insurers' Bureau (MIB) applies specifically for claims involving property damage caused by unidentified third parties. In circumstances where an insured vehicle is damaged as a result of a hit and run or an incident involving an unidentified party, the MIB enforces a monetary excess as a means to potentially deter fraudulent claims and share some of the financial responsibility with the claimant.

This excess serves as a threshold that the claimant must pay before the MIB covers the remaining costs of the damages. By setting this amount at £400, the MIB encourages a sense of responsibility in the policyholder while also providing essential support in genuine claims. Knowing how excess amounts function within insurance policies is crucial for understanding the dynamics of making a claim and the financial implications involved. The other figures of £250, £300, and £500 do not represent the standard excess for such claims per MIB guidelines or may relate to different types of damage or circumstances.