What is car insurance excess?

Car insurance excess is the amount you agree to pay towards the cost of a claim on your car insurance policy. Understanding how excess works is important because it affects both your insurance price and what you’ll pay if you need to make a claim.

Types of car insurance excess

Car insurance excess is usually made up of 2 parts: compulsory excess and voluntary excess.

Compulsory excess

This is set by your insurer. It could be higher if:

• you're a younger driver
• your car is high value or high performance
• you live in a higher risk area
• you have certain types of cover, like third-party

You cannot remove compulsory excess as it is a mandatory part of your policy.

Voluntary excess

This is the amount you choose to add on top of the compulsory excess. Increasing your voluntary excess can lower your policy cost but increases what you’ll pay if you make a claim. For example: if your compulsory excess is £200 and your voluntary excess is £150, your total excess will be £350.

Do I pay the excess if my car is written off?

Yes, if your car is declared a write-off:

1. The insurer calculates the market value of your car.
2. They deduct your total excess from the payout.
3. You receive the remaining balance.

If the accident was not your fault, you may later be able to recover your excess from the at-fault driver’s insurer.

How does it work if the repair costs are lower than my excess?

If repairs cost less than your excess, the insurer will not cover the claim. You must pay the full repair costs yourself, though you should still report the incident to your insurer. Always check your policy for the time limit to report an incident. Failing to report an accident could:

• breach your policy terms
• cause issues if another party later makes a claim
• potentially invalidate your insurance

Make sure that when you get your car insurance quote you are considering your excess carefully. Check your policy documents to see what your current excess is.

If you’re with Co-op Car Insurance and need to make a claim, we’ll help you every step of the way.