Compulsory excess is set by your insurer and is non-negotiable. It’s based on your individual risk profile, including factors such as age, driving experience, claim history, and the type of vehicle you drive.
Some common examples:
- Young drivers often have a higher compulsory excess.
- High-performance or luxury vehicles may also come with higher compulsory excess amounts.
This part of the excess is always paid if you make a claim, no matter what voluntary excess you choose.
Voluntary excess is the extra amount you choose to pay on top of your compulsory excess. When setting up your policy, you can often select a voluntary excess to help reduce your premium.
- Higher voluntary excess = lower premium
- Lower voluntary excess = higher premium
It’s a balancing act. Whilst choosing a higher voluntary excess can make your insurance cheaper, make sure it’s still an amount you’d be comfortable paying if you need to make a claim.
You usually pay your total excess (compulsory + voluntary) when you make a claim on your policy, especially if it’s your fault or no other party can be held responsible.
Here’s how it works:
- Fault claim: You’ll pay your full excess amount.
- Non-fault claim: You may still have to pay, but your insurer will try to recover it from the other party.
- Windscreen or minor damage claims: Some policies have separate, smaller excesses for this.
Always check your policy documents for details, as excess amounts and terms can vary.
Also worth knowing: you can insure your excess too. Some insurers offer “excess protection” as an optional add-on, which means they’ll reimburse your excess after you’ve paid it, whether it’s voluntary, compulsory, or both. It’s a small extra cost that could be useful if you ever need to make a large claim.
No. You can only choose your voluntary excess. The compulsory excess is set by your insurer and can’t be changed.
Usually, yes, but the savings may not be huge. Always balance the savings with how much you can realistically afford to pay if you need to claim.
Many policies include a separate windscreen excess, which is often lower than your standard excess.
Not usually. However, some insurers offer “excess protection” as an add-on, which reimburses you after you pay it. Some third-party companies, away from your insurer, can also offer this.
