What is an excess?

An excess is the first portion of a claim which the policyholder will have to pay. Excesses are always advised when you buy car insurance on your schedule. A total excess can be made up of different excesses: These should be added together to give you the total you pay. This is usually paid to the repairer once the repairs are complete or deducted from the total loss settlement.

Voluntary – this is chosen by you. You can decide to increase or decrease this depending on your requirements.

Compulsory – this is set by the insurer underwriting the policy. This excess is added to the voluntary excess to give a total excess you could pay in the event of a claim.

Young/Inexperienced drivers – this is set by the insurer and will be advised at time of buying your insurance but if you are under 25 and/or have less than 1 year’s driving experience on a full UK licence, you can expect to pay an additional excess on top of your voluntary and compulsory excess.

Limited mileage – you may get a cheaper insurance premium if you driver lower miles in the year. Some insurers may add this excess meaning that if the stated mileage has been exceeded in the event of a claim the excess will be added to the compulsory and voluntary excess.

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