Can you explain what car insurance excess is and how it works?

1 Sept 2026, 22:30
Q A Reader Asker

Can you explain what car insurance excess is and how it works?

A CoverWise Team Answered by

Car insurance excess is the amount you agree to pay out of your own pocket when making a claim on your policy. For example, if you have an excess of £300 and your claim is for £1,500, your insurer will pay £1,200. There are typically two types of excess: compulsory, set by the insurer, and voluntary, which you choose to lower your premium. It's important to be aware of your excess, as it affects how much you’ll receive after a claim. If you're unsure about your excess or how it applies to your policy, consider consulting your insurer or a regulated insurance adviser for clarity.

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