Car insurance excess explained: compulsory, voluntary and claims

An excess is the amount you may have to pay towards a claim. The policy may include a compulsory excess set by the insurer and a voluntary excess you choose. The exact terms vary, so check the schedule and wording before deciding.

Add the excesses together

If both apply to a claim, they may be combined. A higher voluntary excess can reduce a quoted premium, but it also means you need to fund more of a repair. Choose an amount you could pay immediately, not simply the largest amount that lowers the price.

Check how excess applies to windscreen, theft, fire, accidental damage, named drivers and young or inexperienced drivers. Some benefits have separate excesses or limits. A policy with a low premium can still cost more after a claim.

Understand when it is payable

Ask whether excess applies if another driver is at fault, whether your insurer can recover it, and how it is handled for an uninsured or untraced driver. A claim can still affect renewal even if you pay an excess; the insurer’s no-claims and recovery rules are in the contract. Do not assume that a third-party insurer will reimburse you immediately.

MoneyHelper’s car insurance guide explains cover basics. Compare quotes using the same excess and cover level. For a first car, read insurance groups and premiums; if the vehicle is financed, review agreement requirements in PCP, HP and PCH.