Car Insurance Excess: How Does It Work?

Car Insurance Excess: How Does It Work?

Let’s assume your insurance policy holds £70 car excess, and you’re unfortunate just to have an accident. The price of your repair is £1,070, so the insurer will shoulder £1,000, which leaves you with £70 excess to pay the bill in full.

Or possibly you’ve only grieved for a broken door mirror. All it requires is a new lens, which costs £20. As that’s less on your £50 excess, which means you can’t claim for it – though at least the cost of replacement is cheap.

From this manner, the excess made sure your insurance is beyond to help if you absolutely need it. For instance, to pay off that £1,000 repair money that would be inconvenient to pay. Besides,  most policies come with two types of excess – compulsory and voluntary. Here’s a guide about compulsory excess and voluntary excess.

Excess insurance, also known as excess waiver insurance and car hire excess insurance, is an optional insurance policy that guards you against any excess costs you may acquire in case you damaged the car you rented.

What Is A Compulsory Excess?

Compulsory excess is a set cost that you will pay in case of a claim. This figure or cost is set by your insurance provider. The amount can change based on driving skill, age and the type of car.

A new driver may need to pay a greater compulsory excess than a more skilled driver as they are seen as a higher risk. While high-performance cars could bring a higher compulsory excess than a standard car model

What Is Voluntary Excess?

The voluntary excess is attached to the compulsory excess – these numbers are the cost you will need to pay when making a claim. But as the designation suggests, you can choose how much voluntary excess you wish to pay. By raising your voluntary excess you may be capable to bring your premium down. However, remember that you will have to pay this out if you make a claim.

Lower excess, higher premium or higher excess, lower premium? You decide because you’re in control.

When Do You Pay Excess On Car Insurance?

You pay the excess in case of any claim given on your insurance policy regardless of who’s lapses or flaws. However, if it’s determined the accident was another person’s account, yet the full value is recovered from their insurer, you can possibly recover this amount.


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