Excess insurance is a policy that’s separate to your motor insurance policy. It protects against paying a large excess in the event of a claim.

When buying motor insurance, you’re typically liable for a fixed amount that you’ll need to pay out if you make a claim.  So if, for example, your excess is £400 and there’s £1,000 worth of damage done to your vehicle, the insurer will keep £400 and will pay you £600.  If the claim is deemed to be someone else’s fault, this excess may be waived. This isn’t always the case, so it’s worth checking your policy’s terms and conditions.

A compulsory excess may be applied to a policy by your insurer, and can vary. Things like your vehicle type, experience as a driver and your age can all play a part in the excess. Young drivers are typically hit with a high compulsory excess as insurers see them as high-risk.

Voluntary excess works a little differently, as this is set by the policyholder. Increasing your voluntary excess can often be a good way of lowering the initial cost of your insurance. However, this obviously increases the amount you’ll be liable to pay if you were to be involved in an accident.

Perhaps you’re a young driver concerned about a high excess on your policy. Or maybe you’re looking for ways to reduce your insurance premiums while reducing your risk. Either way, motor excess insurance could be for you.

There are four levels of cover available, with prices ranging from £30.00* to £70.00**:

• £350
• £750
• £1,000
• £2,000

*Price based on buying an annual policy on 4th October 2018 covering an excess up to £350 

**Price based on buying an annual policy on 4th October 2018 covering an excess up to £2,000