How to Compare Car Insurance Excess Amounts
Excess. It's that slightly awkward word on every insurance quote that most people either ignore; or misunderstand completely. But if you're not paying attention to the excess amount, you could be in for a nasty surprise when it comes time to claim.
So, what does it actually mean? And how do you compare different excess levels without getting bamboozled by numbers and fine print? Let's get into it; with a bit of common sense, a few real-world examples, and just enough cautionary tales to keep things interesting.
How Do You Define Car Insurance Excess?
In simple terms, the excess is the amount you agree to pay out of your own pocket if you make a claim. It's a contribution towards the cost of the repair or replacement, and the insurer covers the rest.
There are two main types to know about:
- Compulsory excess - Set by the insurer. Non-negotiable.
- Voluntary excess - Chosen by you. You can raise or lower this when setting up your policy.
Add them together, and that's your total excess. If your compulsory excess is 250 pounds and you choose a voluntary excess of 200 pounds, you'll pay 450 pounds towards a claim before your insurer steps in.
How Does Excess Affect the Cost of Insurance?
Generally speaking, the higher your voluntary excess, the lower your premium. Why? Because it means you're willing to shoulder more risk yourself - and insurers quite like that.
But, and it's a big but; choosing a high excess to save a few pounds upfront can backfire when the unexpected happens. If you can't afford to pay your excess, your claim won't be processed at all. No repairs. No payout. No joy.
Just imagine: you slide into a bollard in a car park and cause 500 pounds worth of damage. You've set your total excess at 600 pounds. That means you'll have to pay for the entire repair yourself - and there's no claim at all. Ouch.
How to Compare Excess Amounts on Different Policies
When looking at quotes, don't just focus on the premium. Always compare the full excess breakdown. Ask yourself:
- What is the total excess? Add compulsory and voluntary together.
- Is it worth the risk? Could you afford that amount tomorrow if needed?
- Does it apply to all claims? Some policies have different excesses for theft, fire, windscreen, or young drivers.
- Is the saving on the premium worth it? Sometimes a lower premium hides a very high excess.
One driver picked a policy that was 80 pounds cheaper, only to realise later it came with a 750-pound total excess. A minor claim left them footing the entire bill. The "saving" quickly turned sour.
What's a Reasonable Excess Amount?
There's no magic number, but a total excess between 250 and 500 pounds is pretty typical for most drivers. If you're young or driving a high-risk vehicle, the compulsory part alone might be higher.
The key is to strike a balance. Set a voluntary excess that's high enough to bring your premium down, but low enough that you can actually afford it without panicking.
Other Things to Watch For
- Young driver excesses - Some insurers add extra excesses for drivers under 25.
- Windscreen excess - Usually lower than the standard excess, and may be waived entirely for small repairs.
- Uninsured driver protection - Some policies refund your excess if the accident wasn't your fault and the other driver is uninsured.
Don't Let Excess Catch You Off Guard
Excess amounts matter. They can make a big difference to how useful your insurance really is when you might need it. A lower premium might look good on screen, but if the excess is sky-high and unrealistic, it could leave you stranded with a damaged car and no way to fix it.
Click here to compare car insurance quotes now, see the full picture, including excess breakdowns, and find cover that fits your driving life without hidden risks.