FAQs
In simple terms, car insurance excess is the amount you agree to pay towards the repair of your car if you need to make an insurance claim. So, if your car's damaged in an accident, there'll be a set amount you'll have to pay towards the repairs and your insurer will cover what's left of the cost.
What does the excess mean on car insurance? ›
An excess means that you, the policyholder, agree to take part of the 'insurance risk' away from your insurer, as you are agreeing to pay a portion of the initial costs of any claims.
Is it better to have excess or no excess? ›
Excesses help to deter fraud and false claims, as having to pay an excess means anyone making a claim is more likely to be genuine.
How do you explain excess insurance? ›
Your insurance premium is the monthly or yearly amount you pay for your cover. Your insurance excess is your contribution towards any claim you make that is covered by your policy. While these are separate payments, the amount of excess you choose to pay can affect your premium.
What is an example of excess insurance? ›
For example, if the primary insurance coverage limit was $50,000 and the excess policy covered another $25,000, a claim of $60,000 would result in a $50,000 payout from the primary insurance and $10,000 from the excess policy.
Do I still pay excess if not my fault? ›
Do I pay excess if accident is not my fault? – typically yes. Your insurer should recover the money from the insurer of the at-fault driver – eventually, then they will pay it back to you.
Who pays the excess on an insurance claim? ›
You will need to pay your excess if you're in an accident and you make a claim, even if it wasn't your fault. The good news is you may be able to recover this amount from your car insurance provider if there is evidence that the accident was someone else's fault.
What is the purpose of excess in insurance? ›
The excess helps keep the cost of handling and meeting insurance claims down and so the premiums everyone pays are cheaper.
What is the purpose of an excess? ›
An excess (also known as a deductible) is an amount the policy holder must pay if they proceed with making an insurance claim on their insurance policy. It's the first amount payable by the policy holder in the event of a loss and is referred to as the uninsured portion of the loss.
What are the benefits of excess insurance? ›
Excess and surplus lines insurance covers policyholders that have unique risks, extra high risks, and/or poor loss history. These candidates would generally be unable to obtain insurance through standard lines, meaning that there's a huge gap in coverage for them.
Most policies require that you pay an excess unless the cost of the excess can be recouped from the other driver who caused the accident. So basically if it wasn't your fault and you got the driver who was at fault's details.
Can I claim my excess back? ›
You can and should get any excess you had to pay out, recovered from the at-fault driver's insurer. However, depending on the complexity of your claim, this can take anything from a couple of months to several months to be returned. We know of drivers sometimes having to wait over a year to get their excess back.
What does it mean when coverage is excess? ›
Blog Insurance Explained. Excess liability insurance covers claims that exceed the limits of a primary insurance policy. If a business hits the per-claim or aggregate coverage limit on a particular primary policy, excess liability insurance will kick in to cover the amount in excess of the underlying policy limit.
What is the most common excess on car insurance? ›
Our data shows that the most popular voluntary excess is £250 - 62% of our customers chose this amount when they got a car insurance quote.
Is it worth having excess on insurance? ›
By opting for a higher excess, you may see significant savings on your insurance costs. This can be especially beneficial for those with a low-risk profile or a history of few claims, as they are less likely to need their insurance coverage frequently.
Who needs excess insurance? ›
Many small business owners use excess liability insurance as a cost-effective way to increase the limits on their underlying coverage, for any claims that might exceed their primary insurance coverage.
Should you pay higher or lower excess? ›
The higher the excess, the less you might pay in premiums, and vice versa. Of course, a higher excess means you may end up paying more out-of-pocket if you need to make a claim. If you're a safe driver with a clean driving history, going with a higher excess could make sense for you.
Do you pay excess before or after repair? ›
When is a car insurance excess paid? If your car is repairable, we'll ask you to pay your car insurance excess before the repairs start. If your car is written off and we are paying you a total loss settlement, we'll deduct the excess from the final settlement amount we pay you.
Do I get my excess back? ›
Paying excess for a car accident that isn't your fault
If your insurance company have dealt with the claim, they should claim the excess back for you. If you have a no fault accident, a credit hire company can also make a claim on your behalf.
Is excess protect cover worth it? ›
When you take out car insurance excess protection you have peace of mind that you won't need to find a lump sum of cash to pay for the excess if you make a claim. You can take advantage of cheaper car insurance premiums, but if you do have an accident, you won't be faced with any big bills.
