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:

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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