Should I pay more or less excess?
Asked by: Dr. Jaylan Reichert | Last update: November 7, 2025Score: 4.5/5 (32 votes)
Is it worth paying more for less excess?
Having a higher insurance excess will mean a lower premium, which is certainly convenient provided you never have to make a claim. Unfortunately, if you do have to make a claim, you'll face a larger lump sum upfront.
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.
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.
What if the claim is less than the excess?
The excess is the amount of money that your insurer will take off the claim. It may not be worth making a claim if the amount you're claiming for is less than this. the small print. Make sure there's nothing in the terms and conditions that prevents you from claiming.
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.
Do I pay excess if I am not at 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 should I set my excess at?
Consider the amount you want to set for your excess. Choosing a higher excess can save you money in the short term, but you need to be sure you can afford to pay it if you need to make a claim. Setting the excess too high could leave you in a difficult financial situation when an unexpected event occurs.
What voluntary excess should I pay?
Keep in mind that the voluntary excess should not be more than the cost of the most basic claims. This is because you may end up paying a price that's more expensive than the actual cost of repair if you choose to claim through your Insurance policy.
Why did my insurance go up 500?
Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.
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.
Can I keep extra money from a car insurance claim?
If your insurer does allow you to keep the excess money, you may wonder if you must use it on vehicle repairs. The answer is no. You can use the extra money in any way that you please. If your vehicle has other, non-accident-related issues you wish to take care of, you can use the extra funds to do so.
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 $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.
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.
Is it bad to have too much insurance?
There's Risk Involved in Having Multiple Life Policies
If you have more coverage than you need, you will be paying for coverage that you don't need. Over-insurance may result in unnecessary costs without providing additional benefits.
Is it better to have high or low excess?
There are two parts to your car insurance excess: compulsory and voluntary. The excess is simply the amount of money you agree to pay towards the cost of any claims you make. Choosing a higher voluntary excess can save you money on your premium, but you'll have to pay more out of pocket if you need to make a claim.
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.
What is a good amount for voluntary life insurance?
Human Life Value*
Based on the value of your future earnings, a simple way to estimate this is to consider 30X your income between the ages of 18 and 40; 20X income for age 41-50; 15X income for age 51-60; and 10X income for age 61-65. After age 65, coverage is based on net worth instead of income.
Do I pay excess if not my fault?
If you make a claim through your own insurance company, their process requires you to pay your own policy excess. This is the case, even if the accident wasn't your fault.
What if I can't pay my excess?
What if you cannot afford the excess? If you do not have the money available to pay the excess your insurer may refuse your claim or it might deduct the amount from what it pays towards the repairs.
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 have a higher voluntary excess?
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.
Should I accept 50/50?
You might be wondering, 'Do I have to accept 50/50 liability if I'm told that I was equally responsible for the accident? ' In short, you don't. However, when considering how to fight a 50/50 insurance claim, be aware that you must be able to prove that you were less liable, or not liable at all.
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).