Excess Insurance Explained
Whether it’s down to voluntary or compulsory excess, making a claim on your car insurance policy is rarely free.
Excess Insurance – sometimes known as Excess Waiver Insurance or Excess Reimbursement Insurance – is designed to cover the cost of your Excess when you make a claim on your Car Insurance policy.
A Car Insurance Excess (or any other kind of Excess) is usually split into 2 parts: Compulsory Excess and Voluntary Excess.
What is Compulsory Excess? Sometimes known as a Mandatory Excess, this is the amount that you must pay your insurer when making a claim on your insurance, and it is agreed when you take your Car Insurance policy out.
What is Voluntary Excess? This can be adjusted when you first take out your policy and must be paid on top of your compulsory excess – typically between £250 and £1,000. The higher you set your voluntary excess, the cheaper your car insurance premium should be. This might sound great (and it is at the time of purchase), but if you have to make a claim, you’ll need to pay that Voluntary Excess in full in addition to your Compulsory Excess.
For example, if you take out Car Insurance with a £250 Compulsory Excess and £750 Voluntary Excess, that’s £1000 you’ll probably have to cough up when making a claim.
Excess Insurance is designed to cover the excess charged by your insurer when you make a claim. This will be an additional monthly cost or one-off payment, on top of your Car Insurance.
You can decide what percentage of your Excess will be covered when taking out excess insurance, but the more you are covered for, the higher your premium will be.
For example, if your total Excess due after a claim is £800, you can pay for £500 worth of Excess Insurance, meaning you’ll have just £300 to pay in the event of a claim.
If you are looking to cut costs on your Car Insurance premium, you might want to look at increasing your Voluntary Excess and taking out an Excess Insurance policy to cover you in the event of a claim. This could work out cheaper than taking a lower Excess.
Excess Insurance is an option if you do not think that you would have the means to pay a large lump sum to your insurer in the event of an accident.
But remember, the savings you make by increasing your Voluntary Excess might be insignificant in comparison to the additional cost of your Excess Insurance.
We recommend running different quotes to see if you are able to make savings with different Excess levels. Get a no-obligation, free quote here.
There are two types of Excess Insurance to choose from: Single and Lifestyle.
Single Excess Insurance is a policy taken out to cover any Excess due on one policy.
Lifestyle Excess Insurance is designed to cover the Excess on any of your insurance policies (car, home, travel and pet insurance to name a few). Be warned though, that the cap that you decided on when taking out an Excess insurance policy will now apply to all of your insurance policies.
If your annual limit is only £500 and you make more than one claim, the chances are that your Lifestyle Excess insurance would not be enough to provide you with full coverage.
As with any other type of insurance, the exclusions applied will vary from policy to policy.
Some insurers may not cover your Excess if you have an accident in another country for example, while most will only pay out if the insurance that you’re paying Excess on is in your name.
You should also check if your Excess Insurance Provider has an age limit, with some refusing to pay out if you are below or above a set age.
Some Excess Insurance Providers will also include time limits as to when you can claim, so be sure to inform your Excess Insurer that you have made a claim on your original insurance policy as soon as possible.
Depending on the level of cover you choose, Single Excess Insurance for your car is generally priced between £30 and £60 per year.
Lifestyle Excess Insurance is slightly more expensive and will usually cost anywhere between £45 and £65 per year.
Be sure to shop around using online car insurance comparison sites too, as you may find a cheaper policy. Just make sure that it covers you fully and that you know exactly what you're covered for (and what you're not covered against).
Do I have to take out excess insurance?
No, Excess Insurance is an optional extra and not a legal requirement – unlike car insurance. However, if you do not take out excess insurance, you will be liable for the full amount of excess charged when you make a claim.
Can I get van hire excess insurance?
Yes, if you’ve taken out a rental on a van, the rental company will usually provide their own comprehensive insurance cover – but this may include a high excess fee should a claim be made. You can cover the costs of this excess by getting a van hire excess insurance policy with Bobatoo.
How much excess protection can I get?
This will depend on your chosen excess protection insurance provider. However, you can typically purchase between £250 and £1,000 worth of cover.
How do I claim on my excess protection insurance?
To make a claim, you will first have to have a claim settled by your standard insurance policy. Once you have received confirmation from your main policy insurer that your claim has been settled, you can then go on to request a reimbursement of your excess by contacting your excess protection insurance provider.
Does excess protection insurance cover voluntary and compulsory excess?
Yes, with excess protection you are covered for both your voluntary and compulsory excess as long as your claim is within your claim limit.
How many claims can I make on my excess protection insurance policy?
There is no limit to the number of claims you can make on your policy, as long as you do not exceed your annual claim limit.
Can I renew my excess protection insurance?
Yes, as long as your car still falls under the requirements of your cover, you will be able to renew your excess protection insurance at the end of your policy.
Some insurers will also let you renew your policy after making a claim, if you have used up your entire claim limit.
Can I transfer my policy to a different vehicle?
Yes, as long as your new vehicle qualifies for cover with your insurer, you will be able to transfer your policy.
Whether you’re looking for Excess Insurance on a vehicle that you own or one that you’ve hired, you might struggle to find a specialist Excess Insurance Company.
Luckily for you, you can get a quote on Excess Insurance right here with Bobatoo! Just tap the green button below to get your free quote.
Remember, Excess Insurance is not an alternative to Car Insurance – it is simply an additional extra, providing you with extra cover should you need to make a claim.