You might know that when you make a car insurance claim, you have to make a contribution towards the cost, known as an excess. What you might not know is that this excess is made up of two different contributions: a compulsory one, which you have no influence over, and a voluntary one, which you do. Read on to discover the differences and why they matter.<\/p>
A car insurance excess<\/a> is the amount that you have to contribute if you need to make a claim on your policy. So if, for example, you skid on ice and crash into a wall, the cost of repairs to your car (and potentially the wall) might run to thousands of pounds. But you will only need to pay the excess amount. This usually won\u2019t exceed two or three hundred pounds, and may be less. Your insurer will cover the rest of the costs.<\/p> There are two main types of excess: compulsory excesses and voluntary excesses.<\/p> A compulsory excess is set in stone by your car insurer. You have no influence over the level of compulsory excess on your policy, and must pay it if you make a claim on your car insurance.<\/p> A voluntary excess is an amount that you can choose to pay on top of the compulsory excess. But why would anyone choose to pay more towards a claim, I hear you ask? Well, in short, it can reduce your car insurance premium. We explain why, and by how much, later in this guide.<\/p> You have no choice about having a compulsory excess on your policy. Them\u2019s the breaks, sadly. You can, however, choose to reduce the level of your voluntary excess to \u00a30. Just be aware that this is likely to drive up the cost of your up-front premium.<\/p> If you were involved in an accident where another driver admits they were fully at fault, then you typically won\u2019t be liable to pay the excess amount. This is because your insurer should be able to recover the full cost of putting any damage right from other driver\u2019s insurer. However, you may need to pay the excess initially to get repairs on your car kicked off. Your insurer should pay you back when it has been able to recover its costs.<\/p> For most other claims, including theft, accidents, and other types of damage, you will need to pay an excess. There are a few exceptions to this rule. They include:<\/p> The precise timing depends on your insurer. Some will ask you to pay as soon as you make a claim. Others might send you a bill when the claim is paid out.<\/p> Bear in mind that while you do have to tell your insurer about all incidents (or risk invalidating your policy if you don\u2019t), you don\u2019t necessarily have to claim on your insurance for all repairs.<\/p> *Top 5 policies vary depending on the voluntary excess selected, so premiums should be taken as indicative rather than direct comparisons.<\/p>What is a compulsory car insurance excess?<\/h3>
What is a voluntary car insurance excess?<\/h3>
Do I have to have both a compulsory and voluntary excess on my policy?<\/h3>
Do I always have to pay an excess in the event of a claim?<\/h3>
When do I have to pay my car insurance excess?<\/h3>
Voluntary excess<\/th> Range of top 5 premiums*<\/th><\/tr><\/thead> \u00a30<\/td> \u00a31,313-\u00a31,608<\/td><\/tr> \u00a3100<\/td> \u00a31,193-\u00a31,525<\/td><\/tr> \u00a3250<\/td> \u00a31,085-\u00a31,433<\/td><\/tr> \u00a3500<\/td> \u00a31,059-\u00a31,384<\/td><\/tr> \u00a3750<\/td> \u00a31,037-\u00a31,355<\/td><\/tr> \u00a31,000<\/td> \u00a31,036-\u00a31,354<\/td><\/tr><\/tbody><\/table>
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