Hah! Your stupid neighbour thought he'd save money on his insurance by upping his excess, and now he's trying to get you to pay it! Trust me, ring your insurer and they'll confirm it. (so will your neighbour's insurance company). I used to get that all the time in my last job - people thought it was unfair(once they had a claim, not before when it was cheaper, oh no!)that they had to pay money when the accident wasn't their fault. But it is possible to get car insurance with nil excess, just more expensive. Your neighbour will have to cough up the dosh himself and wait till his insurance company can claim it back for him. Tough donuts to the cheapskate!
Cor, you fall asleep for a week, and when the prince (well, I'd rather a princess, but I was asleep at the time) wakes you up your mile behind the times. Reading back three pages worth of conversation was great fun though! [Btd] A blast of positive karma to you, or whatever equivalent you'd prefer. Maybe an Indian takeaway.