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- What is excess insurance?
- What are the different types of excess insurance?
- What is a compulsory excess and a voluntary excess?
- Should I take out excess insurance?
- What is not covered by excess insurance?
- Compare car insurance excess
Protect yourself against costly insurance excess fees
Find out what excess insurance is and why it could be beneficial if you need to make a claim on your insurance policy.
What is excess insurance?
Excess insurance is an additional insurance policy that you can purchase to cover the excess you would have to pay in the event of a claim on your car insurance. The excess is the amount you are responsible for paying towards the cost of any claim you make, and it’s made up of both a compulsory excess and a voluntary excess.
With excess insurance, you can choose the upper limit on which the policy will pay out. This limit typically ranges from £250 to £1,000, and the higher the amount of excess you want to cover, the more your excess insurance policy will cost.
If you need to make a claim on your car insurance, you will first need to pay your excess before your insurer covers the rest of the cost of the claim. However, with excess insurance, you can claim back the amount you paid in excess, up to the pre-agreed limit of your policy.
Excess insurance can be particularly useful if you have a high excess on your car insurance policy or if you’re concerned about the financial impact of having to pay the excess in the event of a claim. By taking out excess insurance, you can have peace of mind knowing that you’re financially protected if you need to make a claim.
What are the different types of excess insurance?
There are two types of excess insurance available for car insurance policies: single and lifestyle excess insurance.
Single-policy excess insurance only covers the excess on a single-car insurance policy. This type of policy is useful if you only have one car and one insurance policy to cover.
On the other hand, lifestyle excess insurance covers excesses on multiple insurance policies that you may have, not just car insurance policies. This could include excesses on your home, travel, medical, or pet insurance policies. With lifestyle excess insurance, you can have peace of mind knowing that you’re covered for excesses on all your insurance policies.
It’s important to note that the excess insurance claims cap you have paid for will still apply to lifestyle excess insurance. For example, if you have an annual policy that covers up to £500 of excess, and you make a claim on both your car and home insurance policies in the same year, your insurer won’t pay out more than the £500 cap.
When considering excess insurance, it’s essential to compare policies and prices to find the best option for your individual circumstances. It’s also crucial to ensure that you understand the terms and conditions of the policy before making a purchase.
What is a compulsory excess and a voluntary excess?
When you take out car insurance, your policy will include an excess – a sum of money that you must contribute towards the full cost of a claim. The excess is usually split into two parts: a compulsory excess and a voluntary excess.
The compulsory excess is set by the insurer and is non-negotiable. This means that you will have to pay this amount if you make a claim, regardless of the circumstances. In most cases, the compulsory excess is a standard amount set by the insurer, based on factors such as your age, driving experience, and the type of car you drive.
The voluntary excess, on the other hand, is an amount that you choose to pay on top of the compulsory excess. By opting for a higher voluntary excess, you can lower your car insurance premiums, as you will be taking on a greater share of the financial risk in the event of a claim. However, it’s essential to remember that you will have to pay this amount if you make a claim, so it’s important to choose a voluntary excess that you can afford.
It’s worth noting that while increasing your voluntary excess can help to reduce your premiums, it’s not always the best option. If you’re likely to make a claim in the near future, it may be better to choose a lower excess to ensure that you can afford the contribution towards the claim. Additionally, some insurers may set a maximum voluntary excess that you can choose, so be sure to check this before making any decisions.
- Car insurance policies include an excess – a sum of money that you must contribute towards the full cost of a claim.
- The excess is usually split into two parts: a compulsory excess and a voluntary excess.
- The compulsory excess is set by the insurer and is non-negotiable.
- The voluntary excess is an amount that you choose to pay on top of the compulsory excess.
- Opting for a higher voluntary excess can lower your car insurance premiums, but it’s important to choose a level that you can afford.
- Increasing your voluntary excess may not always be the best option, especially if you’re likely to make a claim in the near future.
- Some insurers may set a maximum voluntary excess that you can choose, so be sure to check this before making any decisions.
Learn more about compulsory excess and voluntary excess
Should I take out excess insurance?
Opting for a higher voluntary excess on your car insurance is a quick and easy way to lower your premium costs. However, it’s important to keep in mind that increasing your voluntary excess can leave you with a larger payment if you need to make a claim.
If you’re concerned that you may not be able to afford your excess payment in the event of a claim, excess insurance can be a helpful option. Excess insurance is a type of insurance that covers the cost of your excess payment in the event of a claim. This can provide peace of mind and reduce the financial burden of an unexpected expense.
It’s essential to remember that excess insurance is an additional cost on top of your main car insurance policy, so it’s crucial to factor this into your budget. The cost of excess insurance can vary, starting from around £20 a year, depending on the level of cover you choose and whether you opt for a single policy or lifestyle excess insurance. It’s worth shopping around to find the best deal for your needs.
What is not covered by excess insurance?
When considering excess insurance, it’s important to carefully review the terms and conditions of your policy to ensure that you are fully aware of what is covered and what is not covered. Some important points to keep in mind include:
- Waiting periods: Some excess insurance policies may have a waiting period before you can make a claim. For example, you may not be able to make a claim within the first 14 to 30 days of your policy starting. It’s essential to check this before purchasing your policy.
- International coverage: If you plan to drive abroad, it’s important to check if your excess insurance policy covers accidents that occur outside of your home country. Some policies may only cover you for accidents that occur within the UK.
- Policyholder name: If you purchase excess insurance under your name, it’s important to check whether the policy covers other insurance policies held in your partner’s name. Some providers may only cover the excess for policies held under your name, meaning that your excess insurance may not pay out if your partner has a separate policy.
By understanding the terms and conditions of your excess insurance policy, you can ensure that you are adequately covered in the event of an accident, without any unexpected surprises.
Compare car insurance excess
When it comes to finding the best car insurance deal for you, Comparoo offers a convenient and user-friendly platform to browse quotes from over 110 insurance providers. To get started, simply enter a few key details about yourself, your car, and your driving history. Comparoo’s sophisticated algorithms will then generate a range of tailored quotes, based on your specific requirements and preferences.
One of the great features of Comparoo is that it allows you to easily adjust the voluntary excess for your policy. By default, Comparoo pre-selects a voluntary excess of £250, but you can change this to any amount between £0 and £1,000. This allows you to see how different excess levels can affect the cost of your premium, and make an informed decision about the level of excess that works best for your needs and budget.
Once you’ve found a quote that you’re happy with, simply click on the deal and you’ll be directed straight to the provider’s website to complete your purchase. By using Comparoo’s comparison platform, you can save time and money by easily comparing multiple quotes from a range of providers, all in one place.
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