The excess is the part of a claim you pay yourself. Setting it sensibly can lower your premium without leaving you out of pocket.
Key things to know
- The excess is the amount you pay towards each claim before the insurer pays the rest.
- Total excess is usually the compulsory excess set by the insurer plus any voluntary excess you choose.
- A higher voluntary excess often lowers your premium, but you pay more if you claim.
- Only choose an excess you could pay straight away if something went wrong.
Most insurance policies ask you to pay part of any claim. That part is the excess, and it works in the same way across car, home and pet insurance.
How it works
If you claim £1,500 for damage and your total excess is £350, the insurer pays £1,150 and you cover £350. If the damage costs less than the excess, it usually isn’t worth claiming.
Compulsory and voluntary excess
| Type | Who sets it | Can you change it? |
|---|---|---|
| Compulsory | The insurer | No |
| Voluntary | You, when buying the policy | Yes |
| Total | Compulsory plus voluntary | Shown on your policy schedule |
Insurers can set higher compulsory amounts for certain claims or drivers, such as young or newly qualified drivers.
Excess and your premium
Adding a voluntary excess usually lowers the premium, because you’re taking on more of the risk. The saving can be modest, so compare quotes with and without it.
Worth doing
Before raising your voluntary excess, check you could pay the total excess from savings tomorrow. A cheap premium isn’t a saving if a claim leaves you struggling.
Check your policy
Check your policy schedule for separate excesses. Home policies often have a higher excess for escape of water claims, and car policies may differ for windscreen claims.
Choosing your excess
Look at the total excess on each quote, not just the price. Our guide to using comparison sites explains how to compare like for like, and our guide to making a claim covers what happens when you need to use the policy.
Questions answered
Do I pay the excess if the accident wasn’t my fault?
You may pay it at first, then get it back if your insurer recovers costs from the other driver’s insurer.
Is excess protection insurance worth it?
It can help if you claim often or have a high excess, but compare its cost with how likely you are to claim.
Can a policy have different excesses?
Yes. Policies often set different amounts for different claims, such as escape of water on home insurance or young drivers on car insurance.
This guide is general information, not financial or insurance advice. Policies differ, so always read your own policy documents and check with your insurer. If you have a complaint, your insurer’s complaints process and the Financial Ombudsman Service can help.