What is voluntary excess?


Editorial team Published on

Voluntary excess is an optional amount of money you agree to pay out-of-pocket toward an insurance claim, which you select when buying or renewing a policy to lower your overall cost.

How It Works

  • Choice: You pick the voluntary amount (such as £100 or £250) when setting up your insurance.
  • Stacking: It adds on top of any fixed compulsory excess (the mandatory amount set by the insurer).
  • Total Cost: Your total payout deduction during a claim combines both the voluntary and compulsory amounts.

Financial Impact

  • Lower Premiums: Selecting a higher voluntary excess tells the insurer you take on more risk, which usually reduces your regular insurance bill.
  • Higher Claim Costs: If you file a claim, you must pay both excesses before the provider covers the remaining repair costs. If a repair costs less than your total combined excess, you receive no payout.

You can learn more about how choices impact rates through Confused.com or review options with providers like LV=.