{"id":332971,"date":"2020-09-09T16:30:31","date_gmt":"2020-09-09T15:30:31","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=332971"},"modified":"2026-04-02T12:57:27","modified_gmt":"2026-04-02T11:57:27","slug":"car-insurance-excess","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/car-insurance\/car-insurance-excess","title":{"rendered":"What is car insurance excess?"},"content":{"rendered":"

A car insurance excess is the amount you pay when you want to make a claim. Excesses mainly exist to deter people from claiming really small damages<\/a>, or claiming things too often.<\/p>

It’s a toughie when you’re already stressed out from needing to make a claim, but unfortunately, all insurers have excesses in place. They can differ by thousands though, so if you haven’t already, review what excess you’re currently sitting on and consider lowering it if it’s out of your price range.<\/p>

Keep in mind that your premium will change depending on what your excess is. So if you have a high excess you’ll pay less on your premium, but if you have a low excess you’ll have a higher premium.<\/p>

What is car insurance excess?<\/h3>

The car insurance excess is the amount you will be required to pay when you make a claim on your policy. In other words, it\u2019s the amount you agree to contribute towards the cost of a claim, with the insurer covering the remaining amount.<\/p>

For example, if your policy has a \u00a3250 excess and you make a claim for \u00a32,000 damage to your vehicle, you\u2019ll cover the first \u00a3250 of the repair costs and the insurer will foot the bill for the remaining \u00a31,750.<\/p>

However, the amount of excess payable varies depending on a number of factors. Not only does the excess differ according to the policy you select, but you can also adjust your excess higher or lower to vary your premium amount. In addition, specific drivers such as those under 25 years of age, may be required to pay a higher excess amount.<\/p>

Want to save more in the long run? Look for policies with low excesses<\/h3>

An excess is the amount you pay when you want to make a claim. Premiums are one thing, but if you have to fork out an extra \u00a3500 after you’ve had an accident, that can easily eat away at your bank account. Before you sign on the dotted line, have a careful look at what excesses you’d be paying if you want to claim.<\/p>

Why do insurers include an excess on their policies?<\/h3>

The purpose of car insurance excesses is to reduce the number of small claims insurers are required to pay out. If the excess didn\u2019t exist, we\u2019d all be able to lodge claims for every minor little bump, scratch and dent that our cars suffer.<\/p>

While this may seem like a wonderful idea on the surface, in reality it would cause the cost of car insurance policies<\/a> to skyrocket, and the premium could leave a much bigger dent in your bank balance.<\/p>

But by getting policyholders to agree to pay the first part of each claim themselves, insurers are able to prevent myriad claims for minor repairs and therefore keep car insurance premiums down. This in turn means that you can fall back on car insurance in those situations where you really need the financial protection it provides.<\/p>

What types of car insurance excess are there?<\/h3>

It wasn\u2019t all that long ago that there was only one type of car insurance excess. These days there are several excesses that may apply, and it\u2019s worth remembering that you may need to pay more than one excess when you make a claim. Common excesses include:<\/p>