We know car insurance excess can be confusing. It can be hard to understand what it is, when you have to pay it and how much it’ll be.
We’ve put together this handy guide on everything you need to know about excess and what it means for you.
What’s car insurance excess?
A car insurance excess is the amount you pay when you make a claim.
There are two types of excess: compulsory and voluntary excess.
Everyone has to pay compulsory excess. But you can also choose to add a voluntary excess when you get a quote.
It’s an amount you choose to pay on top of your compulsory excess. It can help bring the overall cost of your insurance down.
We’ll go into a little more detail about the differences later on.
Why do we have car insurance excess?
Excess helps cut down on people making small claims, for things like minor scratches or a scuff.
These small claims can add up, so reducing them helps keep the overall cost of insurance down for everyone.
Insurance is there for the big claims you might not be able to pay yourself.
How does car insurance excess work?
Let's say your policy has a £50 excess, and you have an accident.
The cost of the repairs for your car is £1,050. We pay out £1,000, you pay the £50 excess, and there we go – the bill is paid.
If your wing mirror is cracked after being hit, for example, you might only need to fit new glass. That’ll probably cost about £30.
In that case, you can’t claim for it, because the cost to repair the damage is less than your excess. The good news is the fix won’t cost too much – and should hopefully be quick!
Basically, the excess makes sure your insurance is there to help when you really need it. For example, to settle that £1,000 repair bill that would be trickier to pay.
What’s compulsory excess?
Compulsory excess is a fixed amount you have to pay if you need to make a claim. Your insurer sets the amount.
It’ll vary depending on:
- your car
- the age and experience of the drivers on your policy
- if you choose to take protected or guaranteed no claims bonus
A new driver might have to pay a higher compulsory excess than a more experienced driver. That’s because they’re seen as a higher risk.
Expensive performance cars might also mean a higher compulsory excess, because they’d be pricier to repair.
What’s voluntary excess?
A voluntary excess is an amount you choose to pay on top of your compulsory excess. You choose it when you first buy your policy.
If you choose a higher voluntary excess, the cost of your insurance will usually be lower.
Remember to make sure you can afford to pay the excess if you need to make a claim.
For example, say your compulsory excess is £200 and you set your voluntary excess at £100. That means you’d pay £300 if you need to make a claim.
Can you change your excess after you've bought a car insurance policy?
You can’t change your compulsory excess, as this is set by your insurer.
But you can change your voluntary excess. You can add one, change the figure you’ve chosen already or remove it completely. It’s up to you.
Just remember that the changes you make will affect the cost of your insurance.
If you’re insured with us, log in to MyAccount or get in touch with us to change your voluntary excess.
When do you pay your excess on car insurance?
You pay an excess when you make a claim on your insurance. It doesn’t matter who was at fault for the accident – you always have to pay your excess to start with.
But, if it's proven that the accident was the other person’s fault, you might get your excess back further down the line.
That’s because your insurer would be repaid the full cost of the claim by the other person’s insurer.
It’s important you check what your car insurance covers you for and the excess you’ll need to pay, so you don’t get any surprises.
Do you pay an excess on windscreen cover?
Usually, yes. But a lot of insurers set a separate excess for windscreen cover.
For example, if you’re insured with us, the excess is:
- £25 for repairing your windscreen
- £115 for replacing your windscreen
Our comprehensive Admiral, Gold and Platinum levels of cover include windscreen cover.
Always check your policy documents carefully to make sure you know what your excess is before you claim.
Still confused?
If you’re confused about any other car insurance terms, head over to our handy jargon buster to find out more.
