Compulsory excess is the non-optional part of an insurance excess, set by the insurer and applied to relevant claims.
A compulsory excess is the fixed part of an insurance claim that your insurer says you must pay. The ABI explains insurance excess as the first amount of a claim that the customer pays, with the insurer paying the rest, subject to the policy terms.
The word “compulsory” means it is not optional. MoneyHelper says compulsory excess is added to the policy by the insurance provider and you cannot usually change it.
This is different from voluntary excess. Voluntary excess is an extra amount you choose to add on top of the compulsory excess. If you make a claim, both amounts may be deducted from the claim payment or paid by you, depending on the insurer and the claim.
When you make a valid claim, the compulsory excess is the part of the loss you are responsible for. It may be taken from the claim settlement, or you may need to pay it up front.
For example, if your compulsory excess is £250 and your voluntary excess is £150, your total excess may be £400. MoneyHelper explains that car insurance excess can include both compulsory and voluntary amounts.
A compulsory excess can vary by policy, insurer and claim type. On home insurance, different excesses may apply to buildings, contents, flood or subsidence claims. This is why it is important to check the full policy terms, not just the price.
Compulsory excess affects how much you may receive after a claim. If the claim is small, the excess could be close to, or higher than, the amount being claimed. In that case, it may not be worth making a claim. You may still need to report the incident under the terms of your policy, even if you decide not to make a claim.
It can also affect what you need to budget for. A lower premium may not be the best option if the total excess would be hard to pay after a claim.
The Financial Ombudsman Service says policy excesses should be clear in the policy documents. This helps customers understand what they may need to pay if they claim.
Insurers can set different compulsory excesses based on the cover, the customer’s details, the property, the vehicle, and the type of risk.
For motor insurance, it is important to give accurate details when getting a quote. On our car insurance and van insurance pages. If information is inaccurate or incomplete, it may affect the policy or a later claim. The outcome will depend on the circumstances, including whether you took reasonable care when answering the insurer’s questions
For home insurance, the excess can vary for different types of claim. This can matter for homes with flood risk, subsidence, renovation work, or long periods of unoccupancy. We help arrange home insurance for a range of non-standard property needs.
For landlord insurance, different parts of cover may have their own excesses, limits and conditions. This can include buildings cover, loss of rent, legal expenses, or property owners’ liability. Our landlord insurance page explains some of the cover options landlords may need.
Before you buy or renew, check:
The FCA says firms should support customer understanding, with information that helps customers make informed choices. In practice, you should be able to understand what you are buying, what is covered, and what you may need to pay if you claim.
We arrange insurance through insurers, so compulsory excess amounts can vary by insurer and policy. We can help you review key parts of a quote, including excesses, limits, exclusions and conditions.
We may be able to help with car, van, home and landlord insurance, including cover for some customers with previous claims, convictions, low no-claims bonus, flood risk, listed buildings, or unoccupied homes.
Always check that the total excess is suitable for your needs, as well as the premium.
Compulsory excess is the fixed part of a claim set by your insurer. It is not usually something you can change, and it may be added to any voluntary excess you choose.
Always check the total excess before buying cover. Make sure you understand when it applies, how it is paid, and whether different excesses apply to different types of claim.
