Excess

The 'excess' is the part of a claim that you pay yourself. For the average, experienced driver, this can be as little as fifty pounds, but for younger drivers the excess can be as much as five hundred pounds. The excess effectively dissuades you from claiming on your insurance for every scratch or bump you may have, since you would pay for a certain amount of the repair in any case.

In order to reduce your premium you can pay a 'voluntary' excess. This essentially increases the amount of any claim that you agree to pay yourself: you agree to pay more than the mandatory excess. As the cost of a claim will be reduced for your insurer, your premium is also reduced. If you are considered high-risk by your insurer, offering to pay a large voluntary excess can reduce your premiums.

It should be noted that most insurers will not ask you to pay the full excess for all claims: including those for windscreen repair and replacement (see Cover).