Insurance excess is your share of a claim. It may include compulsory and voluntary parts and should be shown in your policy documents.
Insurance excess is the amount you pay towards an insurance claim. The ABI defines an excess as the first part of a claim that the customer pays under the policy terms.
For example, if an insured repair costs £2,000 and your total excess is £250, your insurer may pay £1,750. This depends on the claim being valid, the cover limit, and the policy terms.
Your excess should be clear before you buy. The applicable excesses should be disclosed before purchase and set out clearly in the policy documents.
There are two main types of excess.
Compulsory excess is set by the insurer. You usually cannot change it. It may vary based on the type of policy, the claim type, the vehicle, the property, or the risk details.
Voluntary excess is an amount you choose to add. It is paid on top of the compulsory excess if you claim. MoneyHelper explains that choosing a voluntary excess can affect the cost of insurance, but you should only choose an amount you could afford to pay.
A higher voluntary excess may reduce your premium. But it can also mean you pay more if you need to claim.
Your excess can affect both the price of your policy and what you pay if you need to claim. A higher voluntary excess may reduce your premium, but it also means you would pay more towards a claim.
This is why it is important to choose an excess you can afford. A lower premium may not be the right option if the total excess would be hard to pay after an accident, loss, or damage.
Before you buy, check the compulsory excess, any voluntary excess, and whether different excesses apply to certain claim types.
For car and van insurance, the excess may include both compulsory and voluntary parts. If an accident was not your fault, your insurer may try to recover your excess from the other driver or their insurer. This is not always immediate and can depend on the claim details.
For home insurance, different excesses may apply to buildings, contents, flood, escape of water, or subsidence claims. MoneyHelper notes that some home insurance claims can have different excess amounts.
For landlord insurance, the excess depends on the insurer and the policy. It may vary across buildings cover, contents cover, liability, loss of rent, legal expenses, or tenant damage. Our landlord insurance page explains the types of cover landlords may need to consider.
Check the total excess, not just one part of it. This means adding the compulsory and voluntary excess together.
You should also check whether a different excess applies to certain claims, such as windscreen damage, flood, subsidence, escape of water, or accidental damage.
Your policy wording is the key document. Our policy documents page can help you find policy wordings and Insurance Product Information Documents for different types of cover.
At Got You Covered, we arrange insurance for many customers with more complex needs. This can include drivers with claims or convictions, van owners, homeowners with past claims, and landlords with non-standard properties.
When we help with a quote, we can explain where the excess appears and what it may mean if you claim. We arrange policies through insurers; we do not underwrite the policies ourselves, so the excess, limits, exclusions, and claim decisions depend on the insurer and the policy terms.
If you are arranging car insurance, van insurance, home insurance, or landlord insurance, it is worth checking the excess before you buy.
Insurance excess is your share of a claim. It can affect your premium and the amount you pay if you need to claim.
Before choosing a policy, check the compulsory excess, any voluntary excess, and any special excesses for certain claim types. Make sure the total amount is affordable for you and suits your needs.
