How the excess works for car insurance

Key points:

• There are two types of car insurance excess - a compulsory excess, which is set by the insurer, and an optional voluntary excess, which is set by the policyholder

• If you claim, you must pay both excesses combined before your claim is settled or deducted from your payout.

• For example, if your total claim is £1,200 and your total excess is £200, your insurer covers £1,000.

• Choosing a higher voluntary excess may reduce your premium, but you must be sure you can afford the total excess if you need to claim.

What is car insurance excess? 

A car insurance excess is an amount of money you are expected to pay if you make an insurance claim.

You are responsible for paying the excess and your car insurer will cover the rest of the cost of a claim.

What are the different types of excess? 

There are two key types of car insurance excess - compulsory and voluntary. The compulsory excess is set by your car insurer and this needs to be paid by you if you make a car insurance claim. The amount may differ depending on the claim. 

Just like with car insurance premiums, the compulsory excess is calculated by looking at details such as your car, driving experience and age. 

The voluntary excess is an amount of money you set. When you take out car insurance you choose the level of your voluntary excess, and you will need to pay this as well as the compulsory excess when you make a claim.

For example, John Lewis Money Car Insurance offers standard compulsory excesses starting from £300 for Essentials insurance and £100 for Premier insurance, though additional compulsory excesses may apply depending on driver age and vehicle type.

An additional excess may also apply if you choose to use a non-approved repairer.

How does the excess work? 

If you make a car insurance claim, you are responsible for paying your total combined excess.

You may have to pay the excess before you claim, or once you’ve received a payout from your insurer. For example, if your total claim for vehicle repairs comes to £1,000 and your combined excess is £200, you pay £200 to the repairer, and your insurer covers the remaining £800.

When you make a claim you may also lose your no-claims bonus, unless it’s protected or the claim is another driver’s fault.

Do I pay the excess if it wasn’t my fault? 

You might not have to pay the excess, or it will be refunded to you, if an accident or damage to your car was not your fault. 

If your insurer can recover the costs of a claim from another driver’s insurer, for example, your excess could be refunded. You may need to pay it upfront while the claim is being investigated.

However, if you don’t know who caused the damage, or if the responsible driver is uninsured and untraceable, you may still have to pay the excess.  

Does paying the voluntary excess make car insurance cheaper? 

If you choose a higher voluntary excess, your monthly premiums may be lower. 

However, you should only set a voluntary excess you can comfortably afford to pay at short notice. If you cannot afford to pay your total excess in the event of an accident, your repair or claim settlement may be delayed.

What is windscreen excess? 

The windscreen excess is the amount of money you need to pay if you make a car insurance claim related to your windscreen (if covered under your policy). This could be having a crack or chip repaired, for example, or replacing the windscreen altogether.

Always check your policy documents or contact your insurer before booking glass repairs to make sure you use an approved provider.

This article is for promotional or information purposes only. You must not rely on it as advice.