Is it better to pay excess or not?
Asked by: Mathias Gerhold IV | Last update: October 14, 2025Score: 4.9/5 (69 votes)
Is it better to have excess or no 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.
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.
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.
What happens when you pay 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.
Compulsory excess or voluntary excess? U.K. 🇬🇧
Do I still pay excess if not my fault?
You pay the excess in the event of any claim made on your insurance policy regardless of who is to blame. However, if it's proved the accident was the other person's fault and the full cost is recovered from their insurer, you may be able to recover this amount.
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.
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.
What is the purpose of excess in insurance?
Adding a voluntary excess can lower the cost of your insurance premium – the amount of money you pay for an insurance policy. This is because the insurer won't have to pay out as much in the event of a claim. Paying a lower premium means that you could save money on your insurance.
Is excess insurance more expensive?
The cost of excess liability insurance is also influenced by similar factors as umbrella insurance, such as the coverage limit and the specifics of the underlying policy. Generally, excess liability insurance is more affordable than umbrella insurance because it does not extend coverage to additional types of claims.
What does $100 excess mean?
Excess is the amount of money you agree to pay should the unfortunate happen and you need to make a claim to your insurer.
Is it better to pay more voluntary excess?
Generally speaking, the higher your voluntary excess, the lower your overall premium. Whatever amount you choose still needs to be affordable because you won't be able to proceed with a claim without paying it.
Do I have to pay excess if not my fault budget direct?
If you are involved in a no fault car accident and make a claim, then you do not have to pay any excess (provided we decide the other driver was entirely at fault and we can obtain the at fault driver's full name, residential address, and vehicle registration number).
Should excess be high or low?
A lower excess means that if you need to make a claim, you'll pay less out-of-pocket at that time. This provides budget certainty and peace of mind, especially for businesses or individuals who prefer not to be faced with unexpected large expenses in the event of a claim.
Do you pay excess before or after?
In general: If your vehicle can be repaired, you'll pay the excess to the garage when repairs are finished. If your vehicle is beyond economical repair and is considered to be what's called 'a total loss', the excess will be deducted from the settlement value of your vehicle.
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.
Do I pay excess if I am not at fault?
Your insurer does not generally distinguish between a fault or a no-fault accident claim. You are likely to have to pay the excess up-front before your vehicle is repaired, that is usually a requirement of your policy.
What is the point of excess?
In the insurance world, your excess is the amount you pay out-of-pocket whenever you make an insurance 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.
What happens if I don't pay my excess?
If you refuse to pay the excess, the insurer will not repair your property or the other driver/owner's property. Or they may deduct it from any payout to you or the other driver/owner (so the other driver/owner may chase you for that amount directly).
Do I get my excess back?
You can and should get any excess you had to pay out, recovered from the at-fault driver's insurer. However, depending on the complexity of your claim, this can take anything from a couple of months to several months to be returned. We know of drivers sometimes having to wait over a year to get their excess back.
Is it better to pay your insurance completely or to make payment?
Key takeaways. Paying your policy in full could save you money if your insurance provider offers a paid-in-full discount. Paying for your car insurance in monthly installments might make it easier to manage your budget, but you might also pay extra fees if you don't pay for your policy up front.
Why do people pay excess?
A car insurance excess is designed mainly to eliminate small claims that have a high administrative cost relative to the value of the claim – which in turn helps keep your premiums down.
Is it better to have excess insurance?
It can reduce costs by preventing smaller, more frequent claims. Having an excess also encourages safer driving as drivers are more likely to take extra care if they know they'll have to cover some of the cost themselves following an accident.
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.