What Is Voluntary Excess?

Compulsory excess is set by your insurance provider. This excess amount cannot be changed and will be deducted from a claim that exceeds the excess total.

If you're a young or inexperienced driver, then it may be that your compulsory excess quote is more than someone who is older or has been driving for a longer time. This is because an insurer will deem you more of a risk due to your young age or lack of driving experience.

Similarly, when it comes to car insurance for drivers over the age of 80, the compulsory excess may be higher due to the increased risk that insurers associate with older drivers. If you drive a high-performance or luxury vehicle, then your compulsory excess may also be more than average.

How does voluntary excess differ?

Voluntary excess is a non-obligatory amount that you choose to pay on top of the compulsory excess. 

When you receive a car insurance quote, we suggest that you look at how changing the voluntary excess affects your monthly premiums.

* Remember to choose a voluntary excess amount that you’re comfortable with. This fee is not negotiable when you make a claim and as such, it needs to be factored into your budget. 

People opt to pay voluntary access because it can help to save money.

Many insurance providers will offer you a cheaper premium if you agree to pay this sum when you make a claim.

It is appealing to keep the voluntary excess amount at £0 when you take out a new policy for your vehicle, but we would recommend you try out different voluntary excess amounts when getting quotes to see how it affects your monthly premium.

* Just keep in mind that you will be obligated to pay this excess if you do ever need to make a claim.

The voluntary excess amount that you commit to will mostly be determined by the disposable income you have access to if the need for a claim arises.

It should be set at an amount that you can comfortably manage to pay whilst taking the inclusiveness of compulsory excess into consideration.

Many younger drivers prefer to avoid voluntary excess because their disposable income and savings are limited. In this case, it’s safer and easier to factor in higher insurance premiums.

Mature drivers, on the other hand, are more likely to have the financial stability to take advantage of voluntary excess and the lower premiums that come with it.

Essentially, the level of voluntary excess you choose (if you choose it at all) is narrowed down due to three factors:

• Your personal preference;
• Your disposable income and;
• Your financial stability.

Some insurance companies provide a specialised policy called “car insurance excess protection”.

This type of policy will allow you to claim back your excess if you make a claim.

It’s an additional premium that you would have to pay and is typically separate from your insurance agreement.

Car insurance excess protection offers added peace of mind; however, you may end up paying for a product you never use i.e. you never make an insurance claim.