Insurance Excess

The insurance excess is the amount you pay towards a claim before your insurer covers the rest. Choosing the right excess affects your premium cost and financial exposure when filing a claim.

What Is Insurance Excess?

Insurance excess (also called “deductible”) is the contribution you make when claiming. Essentially:

• Total claim amount = amount paid by your insurer + your excess contribution
• You can select your excess level when you take out cover

How Excess Affects Your Premium

• Higher excess = lower premium: You pay more out‑of‑pocket during a claim, so insurers charge less monthly.
• Lower excess = higher premium: Less claim cost for you means the insurer charges more.

Choose an excess you can realistically afford if you need to claim.

Types of Excess

• Additional Excess: Set by the insurer, varies with policy and risk profile
• Voluntary Excess: Amount you choose in addition to the mandatory excess
• Age-based Excess: Applied to younger or novice drivers
• Standard Excess: Applies each time you file a claim

Why Excess Matters

Understanding excess is important because:

• It helps you balance monthly premium savings against potential claim costs
• You avoid surprise expenses by budgeting for your excess
• Knowing excess terms ensures you're fully prepared before a claim

How to Choose the Right Excess

• Assess your financial buffer—choose an excess you can cover easily
• Compare premiums for different excess levels to find value
• Consider risk factors (e.g. location, driving history) that may affect excess amount

Tips to Save on Premiums Without Raising Excess

• Bundle your home, car, and contents insurance for mult-policy discounts
• Install security devices (alarms, trackers) to reduce insurer risk
• Maintain a clean claims history to qualify for no-claim rebates
• Agree to make small repairs yourself instead of claiming minor damage