Is it better to have excess or no excess?
Asked by: Juana Hudson | Last update: August 27, 2025Score: 4.2/5 (12 votes)
Is it better to pay excess or not?
Purely based on likelihood of risk, paying extra excess when you do end up claiming insurance will usually^ be cheaper cumulatively over all the years that you drive a car, than paying extra in premiums.
Is voluntary excess worth it?
Should I increase my voluntary excess? Increasing your voluntary insurance tends to reduce the cost of your car insurance quote, but increases the cost of making a claim. If you can afford to pay the excess, it's worth looking at how changing your voluntary excess impacts your insurance costs.
What is the point of excess?
An excess is an amount that you must pay towards each claim you make. An example: Imagine your car is damaged in a covered accident and needs $3,000 of repairs. If your policy has a $500 excess, then you'll need to pay the $500 excess and your car insurance will cover the remaining $2,500 for the cost of repairs.
Should I remove excess on travel insurance?
The general advice for whether you should remove the excess on your travel insurance policy comes down to your personal preference. If you like having peace of mind and don't want to deal with out-of-pocket expenses when making a claim, paying for a no-excess policy might be worthwhile.
Compulsory excess or voluntary excess? U.K. 🇬🇧
Is it better to have more or less excess?
Increasing your excess usually lowers your monthly premiums. But it also means that, in the event of a claim, you will need to pay a larger amount upfront. It's therefore important to agree to a compulsory and voluntary excess total that you can afford.
What are the benefits of excess insurance?
The purpose of excess liability insurance is to provide coverage beyond standard limits. Think of it as an umbrella that shelters you when the storms of liability claims become too strong. It prevents exposure when regular policies fall short. These scenarios, although rare, can happen.
Why is insurance excess a thing?
Excesses help to deter fraud and false claims, as having to pay an excess means anyone making a claim is more likely to be genuine. It's also a way to reduce the number of very low-value claims, which will help keep the overall cost of insurance down.
What does $5000 excess mean?
So, if your car has been damaged in an incident, and the repair bill comes to $5000, you will pay for the first portion of the repair bill with your excess. If your excess is $500, the insurance company will pay for the remaining $4500. This doesn't mean you always have to pay the excess if you have an accident.
What is the purpose of an excess?
An excess (also known as a deductible) is an amount the policy holder must pay if they proceed with making an insurance claim on their insurance policy.
Is excess protect cover worth it?
It's all about finding the right balance. However, if you're concerned about being able to afford to claim, excess insurance cover can be very useful. For just a few extra quid a month, you won't have to worry about paying any excess as this will now be covered by your insurance provider.
Is voluntary insurance worth it?
Voluntary life insurance may be a good option to consider if your employer offers it, you'd like additional coverage and you want an easy way to pay for coverage. Just be sure to find out if your coverage ends if you leave your job.
Is 500 excess a lot?
Insurance excess exists mainly to prevent people from making lots of small claims. A car-park ding that might cost a dent specialist £300 to pull out would not be worth making a claim for if your excess is £500, for example, as it would actually cost you more to get fixed if going through your insurance provider.
When should I pay excess?
1. The excess amount is the first amount payable by you when your claim is settled or paid out. 2. It serves to motivate you to be more responsible, to take better care of your valuables and to prevent small, petty claims.
Can you pay off your excess?
Normally, a car insurance excess is paid as a lump sum, not in instalments. If you can't pay it as a lump sum due to financial hardship, you can ask us whether you might be entitled to assistance. If you are, we may give you longer to pay the excess or allow you to pay it in instalments, for example.
Do I have to pay if I hit someone's car?
Hitting a parked car is the same as any other kind of car accident when it comes to key issues like fault and insurance coverage. If no insurance covers the incident, the driver who hit the parked car will personally be on the financial hook for any resulting vehicle damage.
Should I pay more or less excess?
The answer to this depends on whether you have the 'rainy day savings' to potentially pay a higher excess if you get into an accident, Staff says. Having a higher insurance excess will mean a lower premium, which is certainly convenient provided you never have to make a claim.
What excess should I choose?
However, you should, in all circumstances, only agree to as much total excess as you will be able to afford. Do remember that you'll only need to pay the total amount of excess stated on your policy at the point of a claim.
Do I still pay excess if not my fault?
To claim, your insurer will require you to pay the total excess. To make a non-fault claim, insurers require non-fault drivers to pay their total policy excess. This total amount, combining your compulsory and voluntary excess, can be an unexpected financial burden.
Is it good to pay excess?
Car insurance excesses deter people from making lots of claims for minimal damage (like a cracked door mirror). By reducing low-value claims, it helps to keep the overall cost of insurance down for everyone.
Do you pay excess before or after repair?
You pay your car insurance excess when you make a claim on your car insurance policy, on a per-incident basis. This means you need to lodge a claim and pay an excess for each separate incident. In most cases, for example if repairs need to be made to your vehicle, you will need to pay the excess before work can begin.
Do you get excess back?
When you pay the excess for a car accident which isn't your fault, you may need to claim this back from the insurance company of the driver who caused the accident once the claim is settled, if you don't have legal expenses cover to pay this for you.
What is the purpose of excess in insurance?
In insurance, the excess is the initial amount you, as the policy holder, must contribute towards a claim before your insurance coverage kicks in. So before your insurance company pays for any damages, you first pay out of pocket.
What is the difference between a deductible and an excess?
An excess operates in a very similar way to a deductible. However, where there is an insurance policy with an excess, the policy limit is exclusive of the excess. Unlike a deductible, an excess does not erode the aggregate policy limit.
Who pays the insurance excess?
Insurance excess is the amount you have to pay towards the total cost of an insurance claim. It's usually a pre-agreed amount. Your insurer will then contribute the rest – up to the limit of the cover. You'll see insurance excess on insurance products like travel, motor, home, and health.