Compulsory vs voluntary excess explained

Excess is one of the most important parts of a car insurance policy. This guide explains the difference between compulsory excess and voluntary excess, how they work together, and how they affect claims and premiums.

What is excess on car insurance?

Excess is the amount you agree to pay towards a claim. If your claim is approved, the insurer typically pays the remaining cost after excess is deducted.

Compulsory excess

Compulsory excess is set by the insurer and applies automatically. You cannot reduce or remove it. It often depends on factors such as age, experience, and vehicle type.

Voluntary excess

Voluntary excess is the amount you choose to add on top of compulsory excess. Choosing a higher voluntary excess may reduce your premium, but increases your out-of-pocket cost if you claim.

Always choose an excess you could realistically afford to pay.

Excess FAQs

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

Sometimes yes, depending on the claim and whether costs are recovered from the other insurer.

Can excess differ by claim type?

Yes. Windscreen claims and young driver policies may have different excess amounts.