Excess

Most policies have a standard excess which means you agree to pay the first part of any claim, for example the first £100 or £200. If you agree to a higher excess you might get a cheaper insurance premium. This is called a voluntary excess.

The insurer may impose an additional excess over and above the standard excess if they feel the risk is too high. For instance, if you are a young driver (under age 25) your car insurer may well impose an additional excess.

Top tips

  • If your claim is smaller than your excess, the insurance company will not pay out. It's probably not worth claiming for amounts that are less than, or even slightly more than, your excess, particularly if this affects your no claims bonus.

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