What is the difference between voluntary and compulsory excess?
Compulsory excess is the amount your insurer requires you to pay towards a claim. Voluntary excess is an extra amount you choose to add on top — and the two are combined when you claim.
How the two excesses work together
Your excess is what you contribute towards any claim before the insurer pays the rest. There are two parts:
- Compulsory excess — fixed by the insurer based on factors like your age, car and experience
- Voluntary excess — an amount you choose to add, which can lower your premium
When you claim, both are added together. So if your compulsory excess is one figure and you've chosen a voluntary excess on top, you pay the total of the two.
Setting a higher voluntary excess can reduce your premium, but only commit to an amount you could comfortably afford if you needed to claim.
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Can I reduce my compulsory excess?
Not directly — it's set by the insurer. But comparing quotes can reveal insurers that apply a lower compulsory excess for your circumstances.
Does a higher voluntary excess always save money?
It usually lowers the premium, but the saving varies. Weigh it against the larger amount you'd pay out of pocket when making a claim.
Do I pay the excess for a non-fault claim?
You may have to pay it initially, but if your insurer recovers costs from the at-fault party, your excess is normally refunded to you.