Can’t pay your car insurance excess due to financial difficulty? Here’s what to do.

Shattered glass on the road at the scene of an accident.

Car insurance and motor insurance premiums seem to be increasing year on year, forcing drivers to find ways to reduce their premiums.

Reduce car insurance costs with a higher excess

With the arrival of comparison websites like Compare the Market, drivers can personalise their car insurance quotations to suit their specific needs easily.

One popular adjustment made to a car insurance policy is to raise the voluntary excess fee – this can result in cheaper annual premiums, but does not come without risk.

With the temptation of a cheaper car insurance quote, you might opt for a voluntary excess which is higher than you can comfortably afford to pay should you need to make a claim. If you can’t afford to pay your insurance excess, you insurer can refuse you cover.

One solution to this is to buy Excess Insurance.

>>> Get a FREE quote for Excess Insurance now <<<

What is excess insurance?

Excess insurance is an additional extra to your car insurance policy, designed to cover some – or all – of the insurance excess fees due in the event of a claim.

After making a successful claim on your motor insurance, you will be able to make a free claim on your excess insurance to get your initial excess reimbursed.

For example, if you take out £500 worth of excess insurance for the year, you will be able to claim back up to that amount on excess fees paid to your car insurer.

>>> Read more: What is Excess Insurance? <<<

Is excess insurance worth it?

To help you understand the potential savings that can be made by purchasing excess insurance, Bobatoo has run some real-life calculations:

Example 1

This example is based on a 30 year-old-man with 11 years No Claims Bonus (NCB).

  • If the 30-year-old chose to pay no voluntary excess at all in the event of a claim, the annual payment works out at £737.
  • A policy with a voluntary excess of £500 equates to a cheaper premium of £578 (annual payment) for the same 30-year-old man.
  • Plus an additional premium of £36 for your excess insurance policy.
  • Total cost = £614 - a potential saving of £123

Example 2

The following car insurance quotes are based on a 20-year-old woman with 3 years NCB.

  • With no voluntary excess, the 20-year-old is looking to pay £1,495 for her car insurance annual premium.
  • By increasing her voluntary excess to £500, the annual premium works out to be £1,186; that’s a saving of just over £300.
  • Add an extra level of cover with a premium of £36 for your excess insurance policy and you have a total cost of £1222.
  • This gives her a saving of £273

Get a quote for car insurance here, and buy your excess policy here!

The above examples should be seen as rough estimates, as your own personal car insurance quote could work out cheaper or more expensive, depending on a number of factors such as:

  • Your age
  • The level of risk you pose – i.e. if you’ve had any driving convictions or claimed on your insurance after an accident before
  • Your No Claims Bonus
  • Your vehicle – the older it is, the risker it is to insurers

While both are general examples, they clearly show that by increasing the amount of voluntary excess on your car insurance policy, the annual premiums decrease significantly.

A car insurance quote with no voluntary excess is roughly £160 more expensive than a quote with £500 voluntary excess. As discussed previously, raising your voluntary excess will undoubtedly save you money on your insurance premium – but if you need to make a claim, you’ll need to pay that £500.

Having said this, you can purchase £500 worth of Excess Insurance for just £36 with ALA Insurance, meaning that you will receive a full refund of your paid excess once your claim has been confirmed.

This gives you a total saving of £124, and with your voluntary excess paid back to you in full.

>>> Get a FREE quote for Excess Insurance now <<<


Is my excess set too high? Should I reduce my excess?

When you set your voluntary excess, your insurer will assume that you will have the money set aside to pay for it if you need to make a claim.

Unfortunately, this isn’t always the case, as more than 60% of motorists are unable to cover the costs of their excess after an accident.

You may think it is unlikely that you’ll need to make a claim on your car insurance policy, but unfortunate incidents can occur when you least expect it.

If you do not have the relevant savings in place to cover your excess, investing in Excess Insurance could give you peace of mind for as little as £20 with ALA Insurance.

What should I do if I can't afford my excess?

In an ideal world, the best way to protect yourself against excess fees is to have enough money saved up to cover them.

But if you don’t see this as a possibility, or if you would rather take a risk by increasing your voluntary excess, then your best option is to purchase an Excess Insurance policy – get a free quote here.

How much does excess insurance cost?

The cost of your excess insurance policy will depend on the level of cover you require.

For example:

  • £150 worth of excess insurance = £20
  • £250 worth of excess insurance = £29
  • £500 worth of excess insurance = £36
  • £750 worth of excess insurance = £47
  • £1,000 worth of excess insurance = £54

That means, for just £54, you will be able to claim back up to £1,000 worth of car insurance excess in a single year.

>>> Want a great deal on Excess Insurance? Get a FREE quote now. <<<


Do I pay excess if I was not at fault?

If you make a claim on your car insurance when you were not at fault, you shouldn’t need to make a claim on your excess insurance policy.

If you are cleared of any fault, your excess should be paid back to you by the insurance company of the driver who was at fault – this will usually be dealt with by your insurer.

Cheap excess insurance with ALA

ALA Insurance offer comprehensive excess insurance at a reasonable price, giving you peace of mind when out on the road.

To get a free, no obligation quote on excess insurance now, click the button below.