Car insurance excess explained
Key takeaways
- Your car insurance excess is the amount you pay towards a claim before your insurer pays the rest.
- The total excess is split into the compulsory (set by the insurer) and the voluntary (chosen by you).
- Choosing a higher voluntary excess typically lowers your annual premium, but you must be certain you can afford the full total excess at any time.
- You pay the excess only when you make a claim that's determined to be your fault or if the responsible third party can't be identified.
What is a car insurance excess and how does it work?
A car insurance excess is the contribution you make towards the total cost of a claim. Your total excess is the compulsory excess plus the voluntary excess.
For example, say you have a £2,000 repair bill, with a £250 compulsory excess and a £150 voluntary. Your insurer will pay £1,600, whilst you'll pay £400.
If the cost of repairs ends up being less than the total excess, you'll pay for the repairs yourself, as it's not worth claiming.
What is voluntary excess on car insurance?
Voluntary excess is the optional amount you choose to pay on top of the compulsory excess. Your voluntary excess is chosen when you first buy or renew your policy.
Your voluntary excess can be set as low as £0 or as high as £1,000. You should think carefully about the voluntary excess you set as you'll need to cover the cost plus the compulsory excess if you make a claim.
Opting for a higher voluntary excess means a lower premium. This is because you're taking on more risk, so the insurer sees you as less likely to make a claim.
On the flipside, setting a lower voluntary excess can mean a higher premium and fewer quotes to choose from as the insurer sees you as a higher risk by not opting to contribute to the cost of a claim.
How much voluntary excess should I pay on car insurance?
This depends on your own personal budget. Let's take a look at some factors to consider:
- Affordability is key: The most important factor is ensuring you can afford the total excess. That's the compulsory excess plus voluntary excess. You should be able to afford it comfortably at a moment's notice.
- Balance the risk: A higher voluntary excess may mean a lower premium, but it also means higher out-of-pocket costs if you claim.
- Consider your driving habits: Safe drivers with low annual mileage might benefit most from a higher voluntary excess, as they're less risk.
Our data shows that increasing your voluntary excess from £0 to £150 can save up to 27% on an annual premium.*
Compulsory vs. voluntary excess: what’s the difference?
Compulsory excess is set by the insurer and is non-negotiable. It's based on factors like the driver's age, driving experience, car group, and risk profile.
Voluntary excess is chosen by the policyholder and can be anywhere from £0 up to a maximum amount set by the insurer.
Whilst a compulsory excess is fixed, voluntary excess is down to you and your individual budget.
- Compulsory: Set by the insurer and non-negotiable. It is based on factors like the driver's age, experience, car group, and risk profile.
- Voluntary: This is chosen by the policyholder and can be anywhere from £0 up to a maximum amount set by the insurer.
- Impact on price: Compulsory excess is fixed, while altering the voluntary excess is the lever you pull to affect your premium.
When do I pay excess on car insurance?
There are a number of scenarios where you'll pay an excess on your car insurance:
- Fault Claims: You pay upfront to the repairer, or it’s deducted from a payout.
- Non-fault claims: For claims where you're not at fault, you might still pay initially. Once liability is proven and costs are recovered from the other party, your insurer will refund your excess.
- Theft and fire: You always pay the excess for these claims, as there is no third party to claim from.
What is excess protection insurance?
This is a separate, secondary policy designed to cover the cost of both your compulsory and voluntary excess.
You'll still pay the excess to the primary insurer or garage first, then you'll make a claim on the excess protection policy to be reimbursed.
Let's take a look at some of the main pros and cons of buying excess protection insurance:
| Pros | Cons |
|---|---|
| Allows you to set a higher voluntary excess to lower your premium. | It's an extra cost to consider. |
| It prevents the financial shock of having to suddenly front large costs to pay your excess. | It's an extra claim process to go through, as you'll have to submit a claim to your excess protection provider to be reimbursed. |
| You won't be left out of pocket for an excess, especially in situations out of your control like severe weather, vandalism, or a no-fault accident. | It won't cover everything. Excess policies often exclude damage like tyre blowouts, misfuelling, or driving on unpaved roads unless added. |
Does claiming for a windscreen affect my excess?
Typically, no. Most comprehensive policies have a separate, much lower windscreen excess.
It's typically around £140-£400** for a full replacement, depending on make and model.
The good news is that windscreen claims usually don't affect your no-claims bonus. For more information on windscreen claims, check out our windscreen cover guide.
**RAC data, 2026.
Can I get my excess back if I’m hit by an uninsured driver?
Normally, no. If you can't recover costs from a third party, you'll typically lose your excess.
But some insurers do waive your excess if you can provide the other vehicle's registration, make, and model. This is often referred to as the 'uninsured driver promise.'
You can also use the Motor Insurers' Bureau (MIB) as a final resort for recovering costs. Check out our guide for what to do if you're involved in an uninsured driver claim.
*Uswitch data, March-May 2026. Figures reflect the median average for all policy types.
Get a car insurance quote
See a range of car insurance quotes in just a few minutes when you compare with Uswitch
